Summary Box: Netflix turns to investors for $400M

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CASH CALL: Netflix raised $400 million by selling 2.86 million shares of common and issuing debt to one of its major investors.

THE TERMS: Mutual funds and other accounts managed by T. Rowe Price Associates Inc. bought the shares at $70 apiece. That was a 6 percent discount from Netflix’s closing stock price Monday. The remaining $200 million came from Technology Crossover Ventures, which got notes that can be converted into stock.

THE CHALLENGE: Netflix Inc. is still trying to recover from a customer backlash triggered by U.S. price increases of as much as 60 percent.