Netflix Authorizes 7-for-1 Stock Split23 Jun, 2015 By: Erik Gruenwedel
Split takes effect July 15
As expected, Netflix’s board June 23 authorized a 7-for-1 stock split, effective July 15. This means shareholders of record on that date will receive six additional shares of common stock for each Netflix share.
For example, Netflix shares closed June 23 at a record $681.19 per share. Following the stock split, holder of a share of Netflix common stock would own seven shares valued at $97.31 each.
Publicly traded companies such as Google, Walmart and Apple whose share price has risen exponentially in value authorize stock splits in an effort to entice new investors with a more-affordable share price.
Apple authorized a 7-for-1 stock split a year ago.
CEO Reed Hastings in the first-quarter shareholder letter indicated a willingness to split Netflix shares — a strategic move approved by shareholders at the subscription streaming pioneer’s annual meeting earlier this month.