The New York Times reported today that Netflix, which has $5B in its cash reserves will place 2 percent of its holdings with financial institutions that loan to Black businesses.
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The idea came from a call to improve diversity at Netflix, which has partnered with several Black creators including the Obamas, Kenya Barris, and Shonda Rhimes who signed big contracts with the streamer.
The idea to invest in Black financial institutions stemmed from those dinners, according to Bloomberg.
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Netflix executive Aaron Mitchell suggested the idea of the CFO Spencer Neumann, referencing the book “The Color of Money,” by Mehrsa Baradaran as a guide to the challenges faced by Black financial institutions.
“Having a global voice like Netflix say it’s important to invest in financial institutions like Hope is tremendously important, not just for the capital we will use to make mortgage loans and small business loans, but for what it says.”