Netflix Chair Reed Hastings to Step Down from Board

Reed Hastings, Netflix chair and co-founder, will not stand for re-election at the company's annual meeting in June. He plans to focus on philanthropy and other pursuits.

In a 14-page letter to investors released Thursday, Netflix confirmed the departure is not due to any disagreement. The company filed with the Securities and Exchange Commission but has not named a successor for the board seat.

Netflix shares fell about 8% on the news.

Hastings, 65, reflected on Netflix changing his life. "My all-time favourite memory was January 2016, when we enabled nearly the entire planet to enjoy our service," he wrote. He thanked co-chief executives Ted Sarandos and Greg Peters, whose commitment allows him to pursue new endeavors.

Hastings co-founded Netflix 29 years ago in northern California with Marc Randolph. It evolved from mail-order DVDs, competing with chains like Blockbuster, to streaming launch in 2007, sparking intense media competition.

He stepped down as CEO in 2023. "Reed will always be Netflix’s founder and biggest champion," Peters said. "He is a part of our DNA."

Netflix's mission remains to entertain the world with diverse content. Full-year financial outlook is unchanged.

The company received a $2.8bn termination fee after losing the Warner Bros Discovery bid but disclosed no plans for it. Netflix pursued the $110bn deal in December but withdrew in February, allowing Paramount Skydance to proceed amid White House pressure favoring Paramount, run by David Ellison, son of Trump supporter Larry Ellison.

Thursday results showed Q1 revenue of $12.25bn, up 16% year-over-year, exceeding forecasts of $12.18bn.

Netflix viewed the Warner Bros deal as "nice to have, not need to have," emphasizing growth in video podcasts, live events like the World Baseball Classic in Japan, tech improvements, and advertising targeting $3bn in 2026.

Ben Barringer of Quilter Cheviot said Hastings shaped Netflix's culture and agility. He noted the share punishment as an overreaction to mediocre results and key departure post-WBD failure.