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Netflix Commits $100M To 'Support Black Communities' In US

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Netflix Commits $100M To 'Support Black Communities' In US

Netflix Inc. (NASDAQ: NFLX) on Tuesday announced it is committing $100 million towards the cause of racial equality in the United States.

What Happened

The streaming video on demand service provider said it would allocate up to two percent of its cash holdings going forward to "financial institutions and organizations that directly support Black communities in the U.S."

"We believe bringing more capital to these communities can make a meaningful difference for the people and businesses in them, helping more families buy their first home or save for college, and more small businesses get started or grow," Netflix said in a statement.

The California-based company said it would fund Black Economic Development Initiative with $25 million and $10 million to Hope Credit Union, as part of the initial commitment.

Why It Matters

A number of technology companies have come forward to make financial commitments aimed at reducing racial disparity in the U.S. in the wake of the protests following the death of George Floyd.

Apple Inc. (NASDAQ: AAPL) similarly committed $100 million towards African-American causes, and Alphabet Inc. (NASDAQ: GOOGL) (GOOG) subsidiaries Google and YouTube committed $175 million and $100 million each.

Amazon Inc. (NASDAQ: AMZN) also announced a $10 million funding to organizations supporting the African American community last month.

Price Action

Netflix shares closed 1.7% higher at $455.04 on Tuesday. The shares traded nearly 0.2% lower at $454.21 in the after-hours session.

 

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