The company has entertained us throughout the pandemic, and now, Netflix (NASDAQ:NFLX) is giving back to its community.
The streaming service will start putting 2% of its cash holdings into financial institutions and organizations to “directly support Black communities in the U.S.”
Netflix said in a blog post that its initial commitment will be as much as $100 million.
In the first step in allocating that money, $25 million will be moved to a new fund called the Black Economic Development Initiative, investing in “Black financial institutions serving low and moderate-income communities and Black community development corporations in the U.S.,” the company said.
The company also said $10 million will go to Hope Credit Union to fuel economic opportunity in underserved communities across the Deep South.
“Over the next two years, HOPE estimates the Netflix deposit will support financing to more than 2,500 entrepreneurs, homebuyers and consumers of color,” the company said.
The initiative follows the outcry over last month’s police killing of George Floyd in Minneapolis. Many companies have been announcing donations and action plans to address the call in nationwide protests to eliminate racial injustices and inequalities.
Aaron Mitchell, director of talent acquisition at Netflix, proposed the idea to Netflix CEO Reed Hastings. Mitchell teamed up Netflix Treasury director Shannon Alwyn to bring the $100-million commitment together in a few weeks.
Shares in Netflix gained $3.76 to $451.00