Atlanta plays a role in financing Netflix for black companies

Yardstick Management, founded by Ebbie Parsons in 2012, has been consulting with Netflix for months about how it can add more minorities to its executive ranks. She also introduced the video streaming giant to black business leaders.

During a recent consulting session, Netflix executives realized in another way that they could promote diversity. The company had $ 5 billion in cash as of March 31, primarily at large banks. By distributing some of that cash to institutions that prioritize lending money to minority business owners, Netflix could lead by example, Parsons said.

“There are so many great things that can result from having significant resources allocated to black-owned businesses,” he said.

It comes at a crucial time for black-owned business owners, many of whom have closed or downsized due to COVID-19, and who have historically had less access to capital.

Netflix said Tuesday it will allocate $ 100 million to financial institutions “that directly support black communities in the United States.” The first step includes creating a $ 25 million investment fund to serve black financial institutions and depositing $ 10 million in a Mississippi credit union.

Netflix confirmed Parsons’ role in the decision.

Netflix is ​​not a novice at promoting diversity, Parsons said. Netflix has produced several documentaries, including the recent “13”, which documents civil rights struggles. He reached an agreement in 2018 with Barack and Michelle Obama to produce documentaries. And its CEO, Reed Hastings, donated $ 120 million in June to the United Negro College Fund, Spelman College and Morehouse College.

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