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Netflix 'Squid Game' Valuation Pegged at $900 Million

Netflix values its hit show "Squid Game" at nearly $900 million, 40 times its cost of production, a media report said.

Netflix values its hit show "Squid Game" at nearly $900 million, more than 40 times its cost of production, a media report said.

The figure makes the show one of the most profitable for the Los Gatos, Calif., company, according to internal documents seen by Bloomberg News.

More than 130 million users have streamed the South Korean show for at least two minutes, the news service reported.

The show's value is estimated at $891.1 million, more than 40 times the original cost of production, $21.4 million, Bloomberg News reported.

Shares of Netflix on Monday closed 1.5% higher to $637.97. The stock has risen 7.1% since the show started streaming on Sept. 17.

Netflix estimated that 89% of people who started the nine-episode thriller, in which cash-strapped contestants play childhood games, watched more than one episode, Bloomberg reported. About two-thirds (66%) of the viewers finished watching the series in the first 23 days. 

The series is also the first South Korean drama to snatch the top spot on Netflix in the U.S.

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Last week, analysts at Credit Suisse boosted their price target on the streaming service, buoyed by the success of "Squid Game."

Credit Suisse analyst Douglas Mitchelson raised his price target on Netflix to $740 a share from $643 and credited "Squid Game' for a stronger outlook.

Separately, Netflix on Friday dismissed an employee for sharing what it said was confidential and commercially sensitive information to the press, published reports said on Friday.

The move came as the company struggled to contain the impact of an internal staff protest over transphobic material in its new comedy special starring Dave Chappelle.

“We have let go of an employee for sharing confidential, commercially sensitive information outside the company,” according to a Netflix statement cited by The Verge and The Wall Street Journal Friday. 

“We understand this employee may have been motivated by disappointment and hurt with Netflix, but maintaining a culture of trust and transparency is core to our company."

Netflix reports third quarter earnings on Oct. 19. Analysts surveyed by FactSet are estimating that the company earned $2.56 a share on revenue of $7.48 billion.