Netflix (NFLX) is down 6% AH after declaring in an 8-K it's selling $200M of zero coupon...

|By:, SA News Editor

Netflix (NFLX) is down 6% AH after declaring in an 8-K it's selling $200M of zero coupon convertible notes to VC firm TCV, at a conversion price of $85.80/share (60% less than what Netflix traded at 3 months ago). As part of the deal, TCV gains the right to nominate a candidate to Netflix's board. The deal is likely raising fears about Netflix's cash burn, given shrinking margins and rising content costs. (earlier) Update: Netflix will also be issuing $200M in stock to other parties as part of the deal.