Netflix Cofounder Reed Hastings to Leave Board

Reed Hastings, the co-founder and former CEO of Netflix, will not seek re-election to the company’s board when his term expires in June, ending a 29-year tenure at the streaming giant he co-founded in 1997.

The 65-year-old billionaire announced his departure in Netflix’s first-quarter 2026 earnings report, stating he will focus on philanthropy and other pursuits. His exit marks the complete separation of the founder from the company’s governance, a rare move in the tech industry where founders often remain on boards for years.

Hastings praised co-CEOs Ted Sarandos and Greg Peters for their commitment to Netflix’s greatness, saying their leadership allows him to pursue new endeavors. Sarandos and Peters assumed full control of Hastings’ former executive role in January 2023 after he stepped down as co-CEO.

The timing of Hastings’ announcement drew attention due to its proximity to Netflix’s failed attempt to acquire Warner Bros. Discovery. The company had proposed a $27.75-per-share deal in January 2026, which Warner Bros. Accepted, but later withdrew after Paramount Skydance submitted a superior offer.

Paramount Skydance paid Netflix a $2.8 billion termination fee, which boosted the streamer’s free cash flow to $5.1 billion for the quarter and prompted Netflix to raise its full-year 2026 free cash flow forecast to $12.5 billion, up from $11 billion.

During Netflix’s earnings call, an analyst asked whether Hastings’ departure was related to the abandoned Warner Bros. Deal. Sarandos firmly denied any connection, stating Hastings was a strong supporter of the acquisition.

Reed was a big champion for that deal. He championed it with the board; the board unanimously supported the deal, so … that absolutely had nothing to do with it.

Ted Sarandos, Netflix co-CEO

Sarandos added that the company did not lose focus on its core business during the pursuit of the deal, pointing to strong first-quarter results as evidence. Netflix reported net income of $5.3 billion for Q1 2026, an 82.8% increase from $2.9 billion in the prior year, and revenue rose 16.2% to $12.25 billion.