Netflix co-founder Reed Hastings to leave board after nearly 30 years

Netflix co-founder Reed Hastings is stepping down as chairman after nearly 30 years with the streaming giant, announcing his departure as the company reported strong first-quarter earnings. Hastings, who co-founded Netflix in 1997 and served as CEO from 1999 to 2023 before becoming chairman, will not stand for re-election at the company's annual meeting in June. The news sent Netflix stock plunging around 8 percent as investors reacted to the departure of the executive credited with revolutionizing how movies and television are delivered to homes. The announcement came as Netflix reported revenue of $12.25 billion in the first quarter, a 16 percent increase from the same period last year, with earnings per share rising to $1.23 compared to 66 cents a year ago. The company is also refocusing on its advertising business, with plans to grow ad revenue to $3 billion by 2026, a twofold increase from the previous year. Analysts noted that advertising will play a bigger role at Netflix going forward, particularly as the company moves into a new era without Hastings at the helm. Netflix has had an eventful few months, walking away from a $72 billion acquisition deal for Warner Bros. Discovery and receiving a $2.8 billion termination fee. The company also recently raised its subscription prices, with the cheapest ad-free plan now at $19.99 per month, and launched new initiatives including a games app for kids called Playground and expanded live entertainment offerings like the World Baseball Classic in Japan.