co-founder of Netflix inc, Reed Hastingsannounced Thursday that he is stepping down as CEO and handing the reins of the streaming service to his partner and co-CEO, Ted Sarandosand Director of Company Operations, Greg Peters. However, Hastings will continue as CEO of the company.

The company’s shares, which have fallen nearly 38% in the past year, increased by 7.9% to $340.66 in after-hours trading.

Sarandos and Peters will share the title of executive officers, with Hastings serving as CEO.

The change is effective immediately and represents the culmination of A A decade of succession planning by the Council. Both Peters and Sarandos were promoted in July 2020 during a difficult time for the company.

“This has been a baptism of fire, given the recent challenges of COVID and our business,” Hastings wrote in a blog post announcing his departure. “But they’ve both treated each other incredibly well … so the board and I feel the time is right to end my legacy.”

“Ted and Greg are now co-CEOs (…) with twice the heart and twice the ability to delight members and accelerate growth. I’m proud to be CEO for many more years,” Hastings tweeted moments before Netflix reported its fourth-quarter 2022 results.

Hastings announced his departure before Netflix reported it It added 7.66 million subscribers It beat Wall Street estimates by 4.57 million in the fourth quarter Harry and Meghan i Merlin In the battle to attract viewers.

The company has come under pressure from consumer spending restraint and competition Walt Disney, Amazon and other companies that spend billions of dollars on online audiences for TV shows and movies.

Netflix lost customers in the first half of 2022. It grew again in the second half, but the addition of new subscribers is lower than in recent years.

To fuel growth, Netflix introduced in November a A cheaper option with advertising in 12 countries. It also announced plans to stop password sharing.

By the end of December, the company’s global subscriber base was 231 million.

Net income fell to $55 million, or 12 cents per share, from $607 million, or $1.33 per share, a year earlier. Revenue rose 1.9% to $7.85 billion, in line with expectations.

(according to Reuters and EFE)

Continue reading: