Netflix Decides on 10-for-1 Stock Split to Improve Employee Accessibility

Adjusting Common Stock Price to a More Accessible Level

Netflix, the world's largest video streaming company, announced on October 30 (local time) that it has decided to implement a 10-for-1 stock split. On this day, Netflix stated, "The board of directors has approved a 10-for-1 split of the company's common stock."

Netflix headquarters located in the Hollywood area of Los Angeles, California, USA. Photo by Reuters Yonhap News

The company explained, "The purpose of this stock split is to adjust the market price of our common stock to a more accessible level, enabling employees participating in the company's stock option program to purchase shares more easily."

The record date for the split is the close of trading on November 10. Shareholders listed on the shareholder register as of this date will receive nine additional shares for each share they own after the close of trading on November 14. Trading of shares at the split-adjusted price will begin with the market opening on November 17.

Recently, Netflix's share price has steadily increased, surpassing $1,000 per share, and it is currently one of only ten stocks in the S&P 500 index trading above $1,000 per share.

On this day, Netflix closed at $1,089 per share on the New York Stock Exchange, down 1.04% from the previous day. However, following the announcement of the stock split, the share price rose by more than 2% in after-hours trading. Netflix's share price has increased by approximately 22% since the beginning of the year.