Home » Economy » Netflix commits $100M to support black-owned banks, black communities
Netflix commits $100M to support black-owned banks, black communities
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Netflix announced Tuesday that the video-streaming company is putting 2 percent of its total cash holdings, worth about $100 million, toward black-owned banks and other financial organizations.
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The move comes as the country's biggest companies offer financial support to black businesses and civil rights groups in the wake of George Floyd's death, but Netflix's $100 million commitment is more of an investment than a donation. The company's current business model already relies on about 30 banks worldwide to distribute its holdings, according to The New York Times.
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"As part of our commitment to racial equity, we are turning understanding into action. Going forward, Netflix is going to allocate two percent of our cash holdings – initially up to $100 million – into financial institutions and organizations that directly support Black communities in the U.S.," Netflix Director of Talent Acquisition Aaron Mitchell and Treasury Director Shannon Alwyn said in a blog post.
The commitment will start with $35 million split between a new fund called the Black Economic Development Initiative, which will invest in black financial institutions, and HOPE credit union, which aims to provide financial services and support to low-income residents in the South.
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$25 million will go toward the Initiative, managed by the Local Initiatives Support Corporation, which Mitchell and Alwyn describe as "a non-profit with a track record of developing underinvested communities."