Philanthropist and tech pioneer Reed Hastings has donated $1.1 billion worth of Netflix shares to the Silicon Valley Community Foundation.
Reed Hastings, the founder and executive chairman of Netflix, has donated $1.1 billion worth of Netflix (NFLX) stock, or roughly 40 percent of his total company holdings, to the Silicon Valley Community Foundation, a California charity.
Silicon Valley Community Foundation is a Mountain View, Calif.-based nonprofit that focuses on solving regional issues of insecure housing, child development and racial equity, according to its website. It was formed in 2007 as the result of a merger between two charities—the San Mateo-based Peninsula Community Foundation and the San José-based Community Foundation Silicon Valley—and has grown exponentially since.
Today, the foundation is the largest in the Silicon Valley region. It received over $2.5 billion in contributions in 2023 alone.
Other prominent tech executives, including Meta CEO Mark Zuckerberg, his wife Priscilla Chan, and WhatsApp founder Jan Koum, have all made multimillion-dollar donations to the organization.
Hastings, 63, has donated to other philanthropic organizations in the past, especially to universities. Last year, he gave $20 million to Minerva University in San Francisco. In 2022, Hastings and his wife, Patty Quillin, gave $120 million to Historically Black Colleges and Universities (HBCUs).
Hastings is reportedly worth $4.1 billion and he owns 2 percent of Netflix after the donation. He was CEO of the company from its founding in 1997 until 2023 and had been sharing the role with Ted Sarandos since 2020. Greg Peters took over as co-CEO along with Sarandos after Hastings stepped down in January of last year.
Hastings studied mathematics at Bowdoin College in Brunswick, Maine, graduating with a bachelor’s degree in 1983. After serving in the U.S. Marine Corps, he spent two years with the Peace Corps, most of the time teaching math in Swaziland (now Eswatini).
He returned to the United States and went to Stanford University, where he received (1988) a master’s degree in computer science. Subsequently, Hastings became a software developer, and in 1991, he founded Pure Software (later Pure Atria Corporation), which he sold in 1997 for a substantial profit.
In 1997 Hastings conceived the idea of a subscription-based movie-rental service, after he incurred a large late fee when he failed to return a store-rented videocassette. DVDs were new to the market, but Hastings felt that they would travel well through the mail. He and business partner Marc Randolph (who left the company in 2004) incorporated Netflix in California in 1997 and started mail-order DVD operations in 1998.
Hastings became the company’s CEO later that year. At first customers were allowed to rent each DVD for a seven-day period, but by December 1999 subscribers could pay a set monthly fee to rent an unlimited number of DVDs. Although they selected DVDs and controlled their accounts via the Netflix Web site, DVDs (up to three at a time) were sent and returned by mail. Once a DVD was returned, the next movie on the customer’s account list was automatically mailed.
Hastings expanded Netflix through movie studio partnerships and aggressive marketing campaigns, emphasizing Netflix’s catalog of indie films, documentaries, and other movies not easily available through other services. In February 2007 Netflix shipped its billionth DVD. Meanwhile, the company launched applications that permitted customers to access movies and TV shows through streaming downloads. Hastings made a rare misstep in 2011 when Netflix announced that it would increase rental prices and split the company in two, with the DVD service rebranded as Qwikster. He downplayed the resulting loss of customers and plunging stock price, but the company backtracked and canceled the Qwikster spin-off plan.
Hastings subsequently oversaw Netflix’s foray into content produced specifically for its streaming service. Its first such offering was the episodic drama series House of Cards, which debuted in 2013. Such content was hugely successful and became a major focus of the company. During this time Netflix also began producing films. In 2020, Ted Sarandos would serve as co-CEO with Hastings. Three years later, Hastings left the post to become executive chairman.
A noted philanthropist, Hastings devoted part of his time to educational issues, notably charter schools. From 2000 to 2004 he was president of the California State Board of Education.