Reed Hastings, an American billionaire businessman is the co-founder & CEO of media-services provider Netflix Inc., founded in 1997. Formerly, he served as a board member on Facebook (2011- 2019) & Microsoft (2007- 2012).
Starting his career as a math teacher at Peace Corps in Swaziland, Hastings, then worked as a software engineer in many companies, before founding his first company Pure Software (1991- 1997).
After the sales of the Pure Software, Hasting co-founded with Netflix with Marc Randolph- the company now stands with a market cap of $162.58 billion.
How Much Is Reed Hastings’ Net Worth In 2020?
According to Forbes, as of April 7, 2020, Hastings has a net worth of $4.3 billion. Reportedly, Reed made hefty sum through his venture in Netflix (its CEO & co-founder) & own a 1.3% stake in the company.
He ranks #239 in Forbes 400 2019 & #494 in Billionaires 2020.
In October 2011, as per Celebrity Net Worth, the Boston, Massachusetts-born businessman saw downfall of $640 million in the net worth (from the fortune of $858 million to $218 million) after the Qwikster fiasco.
Reportedly, at that time, the share price went down to $77 only from the original $305.
Later, by April 2014, Reed Hastings managed to cope up with losses in previous years & saw earnings of $100 million (on April 23), as the share price hiked to $217 in comparison of $53 (from late 2013).
Then, Hasting had a 5.1% stake, with roughly 2.8 million shares in Netflix in 2014.
And in March 2015, he had a net worth of $1 billion as per Forbes. Over the next 3 years, the Netflix co-founder enjoyed billion-dollars showers:
|2016 (March)||$1.2 billion|
|2019 (March)||$4 billion|
As per reports by CCN.com, since May of 2019 throughout September that year, Reeds lost approximately $1.3 billion of his stakein Netflix on paper.
In October 2019, Reed’s fortune recorded $3.5 billion & again saw incline in gaining.
Hastings’ Salary As CEO Of Netflix
Since the foundation of Netflix in 1997, Reed Hastings is serving as its CEO & without a doubt, he collects hefty payroll from his work.
The Hollywood Reporter, in December 2019, stated that Hastings’ annual salary for 2020 was $650,000 along with a $34 million in stock options in Netflix, totaling the earnings of $34.7 million.
Back in 2019, the Netflix CEO grabbed $31.5 million in total compensation- it includes payroll of $700,000 & stock options worth $30.8 million.
In 2018, he took home $28.7 million.
Sold Software Company & Co-Founded Netflix In 1997
Hasting’s business venture initially came through Pure Software, foundedin October 1991, a company focused on producing troubleshoot software.
Later, in 1997, (following a year of the merger with Atria), then formed as the Pure Atria Corporation was acquired by Rational Software Corporation for $700 million.
Thereafter, on August 29, 1997, Reed Hastings founded Netflix with his partner Marc Randolph, also his former employee at Pure Software.
Admiration with e-commerce company Amazon & an idea of selling large categories of portable items is considered their inspiration for the creation of Netflix.
Reportedly, Hasting invested $2.5 million in start-up cash for Netflix that would turn into a billion-dollar empire later.
Initially based merger of 2 technologies: DVD subscription service through an online website, Netflix began streaming content in 2007.
Reportedly, in April 2019, the paid subscribers count 148 million worldwide, with 68 million subscribers from the US only.
Did you know? In 2000, Blockbuster offered to acquire a 49% stake of Netflix for $50 million; then Netflix was losing money due to their dependence on U.S. Postal Service, though, the acquisition deal never came into action.
What Jobs He Did Before Founding Pure Software and Netflix?
- Peace Corps as Math Teacher- From June 1983 to December 1985
- Symbolics as Lisp instructor assistant- February 1986 to August that year
- Schlumberger Palo Alto Research as Technical Staff- 1988 to 1989
- Coherent Thought as Software Engineer- January 1989 to September 1990
- Network Equipment Technologies as Software Engineer- From September 1990 to February 1991
Netflix Is A Billion-Dollars Company: Market Capitalization In 2020?
After 5 years of Netflix established, the company initiated IPO (Initial Public Offering) on May 29, 2002, & immediately sold 5.5 million shares, each for $15.
Later, that June 14, another 825,000 shares were sold for $15 each.
By 2003, the company reported a revenue of $272 million, with a net profit of $6.5 million. And reportedly by 2005, Netflix was shipping out 1 million DVDs each day.
In 2007, Reed’s media-services provider Netflix reached the billion-dollar milestone, with annual revenue of $1.205 billion, while each share traded at $4.09.
The same year, Netflix Inc. began content streaming & within 4 years of the streaming idea, it made a total digital revenue of $1.5 billion in 2011.
Later, it reached $100 billion in market capitalization on January 22, 2018, with yearly revenue of $15.794 billion. In 2019, it had annual earnings of $20.156 billion.
As of April 7, 2020, Netflix reported its market capitalization of $164.82 billion, with each share trading for $377.87.
Former Board Member Of Facebook And Microsoft
As per Reed’s LinkedIn profile, he served on the board on Bill Gates & Paul Allen- founded multinational technology company Microsoft from 2007 to 2012.
Moreover, in June 2011, Hasting became a board member of Facebook, co-founded by Mark Zuckerberg along with his Harvard mates: Eduardo Saverin, Andrew McCollum, Dustin Moskovitz & Chris Hughes.
In 2012, the Netflix co-founder bought Facebook shares worth $1 million, 47,846 shares of Facebook for $21.03 each.
Reed Hastings, reportedly, owned $10 million worth of Facebook shares in 2016 & later left the Facebook board membership on May 30, 2019.
Signed To ‘The Giving Pledge”: Charity Works & Donations
In 2012, Reed Hastings & his wife Patricia Ann Quillin signed The Giving Pledge, when he had only $280 million fortune & now is a billionaire.
The campaign started by Bill Gates and Warren Buffett also includes signatures of other billionaires: Azim Premji, Elon Musk, Larry Ellison, Michael Bloomberg, & many others.
In 2016, the Hastings Fund founder pledged $100 million funds for children’s education betterment, through Silicon Valley Community Foundation.
In 2006, he donated $100,000 to Beacon Education Network to aid funding for the construction of new charter schools in Santa Cruz County.
Was On California State Board of Education
Formerly, the President of California State Board of Education (2001- 2004), Hastings worked on the promotion of the passage of Proposition 39 in November 2000.
The constitutional amendment (Proposition 39) aimed to lower the voter approval for local schools to pass a construction bond.
For the promotion, he spent $1 million of his own money for its promotion, while Silicon Valley venture capitalist John Doerr gave $6 million.
Lives In San Francisco: Wife & Children?
Raised in Massachusetts, the 59-year-old American businessman lives in San Francisco Bay Area, California, with wife Patricia Ann Quillin.
The couple shares 2 children together, however, he remains low-key about their children & also about their marriage details.
Moreover, no report on Reed Hastings’ house & other assets is out. Surely, as a billionaire, the Netflix CEO barely is barred from perks of luxury.
Short-Bio: Family Background & Education
Reed Hastings was born on October 8, 1960, in Boston, Massachusetts, the USA, to Wilmot Reed Hastings and Joan Amory. His birth name is Wilmot Reed Hastings Jr.
Hasting went to Buckingham Browne & Nichols School and later enrolled at Bowdoin College in 1979, graduating in 1983 with a BA in Math.
Thereafter, he joined the Peace Corps in Swaziland & worked as a math teacher from 1983 to 1985.
From 1986 to 1988, the future-billionaire billionaire went to Stanford University & obtained a Master’s Degree in Computer Science.