SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
(RULE 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13D-1(a)
AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13D-2(a)
(AMENDMENT NO. 1)
NETFLIX, INC.
(Name of Issuer)
Common Stock, par value $0.001 per share
(Title of Class of Securities)
64110L106
(CUSIP Number)
Carla S. Newell
c/o Technology Crossover Ventures
528 Ramona Street
Palo Alto, California 94301
(650) 614-8200
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
COPY TO:
Eleanor Cornish, Esq.
C/o Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP
610 Lincoln Street Waltham, MA 02451
(781) 795-3554
August 7, 2002
(Date of Event Which Requires Filing of This Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
statement because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following
box [ ].
(Continued on following pages)
(1) Name of Reporting Person
TCV IV, L.P.
See item 2 for identification of the General Partner
------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
------------------------------------------------------------------------
(3) SEC Use Only
------------------------------------------------------------------------
(4) Source of Funds
AF, OO
------------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e) [ ]
------------------------------------------------------------------------
(6) Citizenship or Place of Organization
DELAWARE
------------------------------------------------------------------------
(7) Sole Voting Power
Number of 6,786,848 SHARES OF COMMON STOCK (A)
Shares ------------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by -0- SHARES OF COMMON STOCK
Each ------------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 6,786,848 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
6,786,848 SHARES OF COMMON STOCK (A)
------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain
Shares [X]
------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
32.87%
------------------------------------------------------------------------
(14) Type of Reporting Person
PN
------------------------------------------------------------------------
---------------
(A) Please see Item 5. Includes warrants which can be immediately exercised
for a total of 3,471,289 shares of Common Stock.
(1) Name of Reporting Person
TCV IV STRATEGIC PARTNERS, L.P.
See item 2 for identification of the General Partner
------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
------------------------------------------------------------------------
(3) SEC Use Only
------------------------------------------------------------------------
(4) Source of Funds
AF, OO
------------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e)
------------------------------------------------------------------------
(6) Citizenship or Place of Organization
DELAWARE
------------------------------------------------------------------------
(7) Sole Voting Power
Number of 253,073 SHARES OF COMMON STOCK (A)
Shares ------------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by -0- SHARES OF COMMON STOCK
Each ------------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 253,073 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
253,073 SHARES OF COMMON STOCK (A)
------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain
Shares [X]
------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
1.23%
------------------------------------------------------------------------
(14) Type of Reporting Person
PN
------------------------------------------------------------------------
---------------
(A) Please see Item 5. Includes warrants which can be immediately exercised
for a total of 129,439 shares of Common Stock.
(1) Name of Reporting Person
Technology Crossover Management IV, L.L.C.
See item 2 for identification of the Managing Members
------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
------------------------------------------------------------------------
(3) SEC Use Only
------------------------------------------------------------------------
(4) Source of Funds
AF, OO
------------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e)
------------------------------------------------------------------------
(6) Citizenship or Place of Organization
DELAWARE
------------------------------------------------------------------------
(7) Sole Voting Power
Number of 7,039,921 SHARES OF COMMON STOCK (A)
Shares ------------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by -0- SHARES OF COMMON STOCK
Each ------------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 7,039,921 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
7,039,921 SHARES OF COMMON STOCK (A)
------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain
Shares [ ]
------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
34.09%
------------------------------------------------------------------------
(14) Type of Reporting Person
OO
------------------------------------------------------------------------
---------------
(A) Please see Item 5. Includes warrants which can be immediately exercised
for a total of 3,600,728 shares of Common Stock.
(1) Name of Reporting Person
Technology Crossover Ventures II, L.P.
See item 2 for identification of the General Partner
------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
------------------------------------------------------------------------
(3) SEC Use Only
------------------------------------------------------------------------
(4) Source of Funds
AF, OO
------------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e)
------------------------------------------------------------------------
(6) Citizenship or Place of Organization
DELAWARE
------------------------------------------------------------------------
(7) Sole Voting Power
Number of 951,845 SHARES OF COMMON STOCK (A)
Shares ------------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by -0- SHARES OF COMMON STOCK
Each ------------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 951,845 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
951,845 SHARES OF COMMON STOCK (A)
------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain
Shares [X]
------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
4.61%
------------------------------------------------------------------------
(14) Type of Reporting Person
PN
------------------------------------------------------------------------
---------------
(A) Please see Item 5. Includes warrants which can be immediately exercised
for a total of 435,790 shares of Common Stock.
(1) Name of Reporting Person
TCV (Q) II, L.P.
See item 2 for identification of the General Partner
------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
------------------------------------------------------------------------
(3) SEC Use Only
------------------------------------------------------------------------
(4) Source of Funds
AF, OO
------------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e) [ ]
------------------------------------------------------------------------
(6) Citizenship or Place of Organization
DELAWARE
------------------------------------------------------------------------
(7) Sole Voting Power
Number of 731,792 SHARES OF COMMON STOCK (A)
Shares ------------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by -0- SHARES OF COMMON STOCK
Each ------------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 731,792 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
731,792 SHARES OF COMMON STOCK (A)
------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain
Shares [X]
------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
3.54%
------------------------------------------------------------------------
(14) Type of Reporting Person
PN
------------------------------------------------------------------------
---------------
(A) Please see Item 5. Includes warrants which can be immediately exercised
for a total of 355,041 shares of Common Stock.
(1) Name of Reporting Person
TCV II, V.O.F.
See item 2 for identification of the Investment General Partner
------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
------------------------------------------------------------------------
(3) SEC Use Only
------------------------------------------------------------------------
(4) Source of Funds
AF, OO
------------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e) [ ]
------------------------------------------------------------------------
(6) Citizenship or Place of Organization
NETHERLANDS ANTILLES
------------------------------------------------------------------------
(7) Sole Voting Power
Number of 30,920 SHARES OF COMMON STOCK (A)
Shares ------------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by -0- SHARES OF COMMON STOCK
Each ------------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 30,920 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
30,920 SHARES OF COMMON STOCK (A)
------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain
Shares [X]
------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
LESS THAN 1%
------------------------------------------------------------------------
(14) Type of Reporting Person
PN
------------------------------------------------------------------------
---------------
(A) Please see Item 5. Includes warrants which can be immediately exercised
for a total of 14,156 shares of Common Stock.
(1) Name of Reporting Person
TCV II Strategic Partners, L.P.
See item 2 for identification of the General Partner
------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
------------------------------------------------------------------------
(3) SEC Use Only
------------------------------------------------------------------------
(4) Source of Funds
AF, OO
------------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e) [ ]
------------------------------------------------------------------------
(6) Citizenship or Place of Organization
DELAWARE
------------------------------------------------------------------------
(7) Sole Voting Power
Number of 129,867 SHARES OF COMMON STOCK (A)
Shares ------------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by -0- SHARES OF COMMON STOCK
Each ------------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 129,867 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
129,867 SHARES OF COMMON STOCK (A)
------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain
Shares [X]
------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
LESS THAN 1%
------------------------------------------------------------------------
(14) Type of Reporting Person
PN
------------------------------------------------------------------------
---------------
(A) Please see Item 5. Includes warrants which can be immediately exercised
for a total of 59,458 shares of Common Stock.
(1) Name of Reporting Person
Technology Crossover Ventures II, C.V.
See item 2 for identification of the Investment General Partner
------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
------------------------------------------------------------------------
(3) SEC Use Only
------------------------------------------------------------------------
(4) Source of Funds
AF, OO
------------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e) [ ]
------------------------------------------------------------------------
(6) Citizenship or Place of Organization
NETHERLANDS ANTILLES
------------------------------------------------------------------------
(7) Sole Voting Power
Number of 145,327 SHARES OF COMMON STOCK (A)
Shares ------------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by -0- SHARES OF COMMON STOCK
Each ------------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 145,327 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
145,327 SHARES OF COMMON STOCK (A)
------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain
Shares [X]
------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
LESS THAN 1%
------------------------------------------------------------------------
(14) Type of Reporting Person
PN
------------------------------------------------------------------------
---------------
(A) Please see Item 5. Includes warrants which can be immediately exercised
for a total of 66,536 shares of Common Stock.
(1) Name of Reporting Person
Technology Crossover Management II, L.L.C.
See item 2 for identification of the Managing Members
------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
------------------------------------------------------------------------
(3) SEC Use Only
------------------------------------------------------------------------
(4) Source of Funds
AF, OO
------------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e)
------------------------------------------------------------------------
(6) Citizenship or Place of Organization
DELAWARE
------------------------------------------------------------------------
(7) Sole Voting Power
Number of 1,989,751 SHARES OF COMMON STOCK (A)
Shares ------------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by -0- SHARES OF COMMON STOCK
Each ------------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 1,989,751 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
1,989,751 SHARES OF COMMON STOCK (A)
------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain
Shares [ ]
------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
9.64%
------------------------------------------------------------------------
(14) Type of Reporting Person
OO
------------------------------------------------------------------------
---------------
(A) Please see Item 5. Includes warrants which can be immediately exercised
for a total of 910,981 shares of Common Stock.
(1) Name of Reporting Person
TCV Franchise Fund, L.P.
See item 2 for identification of the General Partner
------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
------------------------------------------------------------------------
(3) SEC Use Only
------------------------------------------------------------------------
(4) Source of Funds
AF, OO
------------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e) [ ]
------------------------------------------------------------------------
(6) Citizenship or Place of Organization
DELAWARE
------------------------------------------------------------------------
(7) Sole Voting Power
Number of 174,965 SHARES OF COMMON STOCK (A)
Shares ------------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by -0- SHARES OF COMMON STOCK
Each ------------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 174,965 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
174,965 SHARES OF COMMON STOCK (A)
------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain
Shares [X]
------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
LESS THAN 1%
------------------------------------------------------------------------
(14) Type of Reporting Person
PN
------------------------------------------------------------------------
---------------
(A) Please see Item 5. Includes warrants which can be immediately exercised
for a total of 93,425 shares of Common Stock.
(1) Name of Reporting Person
TCVF Management, L.L.C.
See item 2 for identification of the Managing Members
---------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
---------------------------------------------------------------------
(3) SEC Use Only
---------------------------------------------------------------------
(4) Source of Funds
AF, OO
---------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e)
---------------------------------------------------------------------
(6) Citizenship or Place of Organization
DELAWARE
---------------------------------------------------------------------
(7) Sole Voting Power
Number of 174,965 SHARES OF COMMON STOCK (A)
Shares --------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by -0- SHARES OF COMMON STOCK
Each --------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 174,965 SHARES OF COMMON STOCK (A)
--------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
--------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
174,965 SHARES OF COMMON STOCK (A)
---------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain
Shares [ ]
---------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
LESS THAN 1%
---------------------------------------------------------------------
(14) Type of Reporting Person
OO
---------------------------------------------------------------------
---------------
(A) Please see Item 5. Includes warrants which can be immediately exercised for
a total of 93,425 shares of Common Stock.
(1) Name of Reporting Person
JAY C. HOAG
---------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
---------------------------------------------------------------------
(3) SEC Use Only
---------------------------------------------------------------------
(4) Source of Funds
AF, OO
---------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e) [ ]
---------------------------------------------------------------------
(6) Citizenship or Place of Organization
UNITED STATES CITIZEN
---------------------------------------------------------------------
(7) Sole Voting Power
Number of -0- SHARES OF COMMON STOCK
Shares --------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by 9,204,637 SHARES OF COMMON STOCK (A)
Each --------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 9,204,637 SHARES OF COMMON STOCK (A)
--------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
--------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
9,204,637 SHARES OF COMMON STOCK (A)
---------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain
Shares [ ]
---------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
44.58%
---------------------------------------------------------------------
(14) Type of Reporting Person
IN
---------------------------------------------------------------------
---------------
(A) Please see Item 5. Includes warrants which can be immediately exercised for
a total of 4,605,134 shares of Common Stock.
(1) Name of Reporting Person
RICHARD H. KIMBALL
---------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
---------------------------------------------------------------------
(3) SEC Use Only
---------------------------------------------------------------------
(4) Source of Funds
AF, OO
---------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e) [ ]
---------------------------------------------------------------------
(6) Citizenship or Place of Organization
UNITED STATES CITIZEN
---------------------------------------------------------------------
(7) Sole Voting Power
Number of -0- SHARES OF COMMON STOCK
Shares --------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by 9,204,637 SHARES OF COMMON STOCK (A)
Each --------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 9,204,637 SHARES OF COMMON STOCK (A)
--------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
--------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
9,204,637 SHARES OF COMMON STOCK (A)
---------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain
Shares [ ]
---------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
44.58%
---------------------------------------------------------------------
(14) Type of Reporting Person
IN
---------------------------------------------------------------------
---------------
(A) Please see Item 5. Includes warrants which can be immediately exercised for
a total of 4,605,134 shares of Common Stock.
ITEM 1. SECURITY AND ISSUER.
This statement relates to shares of common stock, par value $0.001 per share
(the "Common Stock"), of Netflix, Inc., a Delaware corporation ("Netflix" or the
"Company"). The Company's principal executive offices are located at 970
University Ave., Los Gatos, CA 95032.
ITEM 2. IDENTITY AND BACKGROUND.
(a)-(c), (f). This statement is being filed by (1) TCV IV, L.P., a Delaware
limited partnership ("TCV IV"), (2) TCV IV Strategic Partners, L.P., a Delaware
limited partnership ("Strategic Partners IV"), (3) Technology Crossover
Management IV, L.L.C., a Delaware limited liability company ("Management IV"),
(4) TCV II, V.O.F., a Netherlands Antilles general partnership ("TCV II,
V.O.F."), (5) Technology Crossover Ventures II, L.P., a Delaware limited
partnership ("TCV II, L.P."), (6) TCV II (Q), L.P., a Delaware limited
partnership ("TCV II (Q)"), (7) TCV II Strategic Partners, L.P., a Delaware
limited partnership ("Strategic Partners II"), (8) Technology Crossover Ventures
II, C.V., a Netherlands Antilles general partnership ("TCV II, C.V."), (9)
Technology Crossover Management II, L.L.C., a Delaware limited liability company
("Management II"), (10) TCV Franchise Fund, L.P., a Delaware limited Partnership
("TCVF"), (11) TCVF Management, L.L.C., a Delaware limited liability company
("Management F"), (12) Jay C. Hoag ("Mr. Hoag") and (13) Richard H. Kimball
("Mr. Kimball"). TCV IV, Strategic Partners IV, Management IV, TCV II, V.O.F.,
TCV II, L.P., TCV II (Q), Strategic Partners II, TCV II, C.V., Management II,
TCVF, Management F, Mr. Hoag and Mr. Kimball are sometimes collectively referred
to herein as the "Reporting Persons." The agreement among the Reporting Persons
relating to the joint filing of this statement is attached as Exhibit 1 hereto.
TCV IV, Strategic Partners IV, Management IV, TCV II, V.O.F., TCV II, L.P., TCV
II (Q), Strategic Partners II, TCV II, C.V., Management II, TCVF and Management
F are each principally engaged in the business of investing in securities of
privately and publicly held companies. Management IV is the sole general partner
of TCV IV and Strategic Partners IV. Management II is the sole general partner
of TCV II, L.P., TCV II (Q) and Strategic Partners II and the sole investment
general partner of TCV II, V.O.F. and TCV II, C.V. Management F is the sole
general partner of TCVF. The address of the principal business and office of
each of TCV IV, Strategic Partners IV, Management IV, TCV II, V.O.F., TCV II,
L.P., TCV II (Q), Strategic Partners II, TCV II, C.V., Management II, TCVF and
Management F is 528 Ramona Street, Palo Alto, California 94301.
Mr. Hoag and Mr. Kimball are the managing members of Management IV, Management
II and Management F. Mr. Hoag and Mr. Kimball are each United States citizens,
and the present principal occupation of each is as a venture capital investor.
The business address of each of Mr. Hoag and Mr. Kimball is 528 Ramona Street,
Palo Alto, California 94301.
(d), (e). During the last five years, none of TCV IV, Strategic Partners IV,
Management IV, TCV II, V.O.F., TCV II, L.P., TCV II (Q), Strategic Partners II,
TCV II, C.V., Management II, TCVF and Management F, Mr. Hoag or Mr. Kimball has
(1) been convicted in a criminal proceeding (excluding traffic violations or
similar misdemeanors) or (2) been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws or finding any violation with respect to such laws.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
TCV IV and Strategic Partners IV purchased the following shares of the Company's
Common Stock in the open market (the "Market Shares"):
Name of Investor Date Shares Acquired Price per Share
---------------------- ------ --------------- ----------------
TCV IV 8/2/02 24,101 $10.8809
Strategic Partners IV 8/2/02 899 $10.8809
TCV IV 8/5/02 135,835 $10.8445
Strategic Partners IV 8/5/02 5,065 $10.8445
TCV IV 8/6/02 24,101 $10.6404
Strategic Partners IV 8/6/02 899 $10.6404
TCV IV 8/7/02 24,101 $10.5500
Strategic Partners IV 8/7/02 899 $10.5500
TCV IV 8/8/02 39,526 $10.8516
Strategic Partners IV 8/8/02 1,474 $10.8516
TCV IV 8/9/02 38,176 $10.9997
Strategic Partners IV 8/9/02 1,424 $10.9997
The source of funds for the acquisition of the Market Shares by TCV IV and
Strategic Partners IV was capital contributions from their respective partners.
ITEM 4. PURPOSE OF TRANSACTION.
The Reporting Persons acquired the Market Shares for investment purposes.
Depending on the factors discussed herein, the Reporting Persons may, from time
to time, acquire additional shares of Common Stock and/or retain and/or sell all
or a portion of the Market Shares in the open market or in privately negotiated
transactions. Any actions the Reporting Persons might undertake will be
dependent upon the Reporting Persons' review of numerous factors, including,
among other things, the price levels of the Common Stock; general market and
economic conditions; ongoing evaluation of the Company's business, financial
condition, operations and prospects; the relative attractiveness of alternative
business and investment opportunities; and other future developments.
Except as set forth above and as set forth in the Reporting Persons' initial
statement on Schedule 13D with respect to the Company's securities, filed May
29, 2002 (which is incorporated by reference herein), the Reporting Persons have
no present plans or intentions which would result in or relate to any of the
transactions described in subparagraphs (a) through (j) of Item 4 of Schedule
13D.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
(a), (b). As of the close of business on August 9, 2002, TCV IV, Strategic
Partners IV, TCV II, V.O.F., TCV II, L.P., TCV II (Q), Strategic Partners II,
TCV II, C.V. and TCVF owned directly 9,204,637 shares of Common Stock as
follows:
-------------------------------------------------------------------------------------------------
Name of Investor Number of Total Shares Percentage of Outstanding Shares (a)
-------------------------------------------------------------------------------------------------
TCV IV 6,786,848 32.87%
-------------------------------------------------------------------------------------------------
Strategic Partners IV 253,073 1.23%
-------------------------------------------------------------------------------------------------
TCV II, V.O.F. 30,920 Less than 1%
-------------------------------------------------------------------------------------------------
TCV II, L.P. 951,845 4.61%
-------------------------------------------------------------------------------------------------
TCV II (Q) 731,792 3.54%
-------------------------------------------------------------------------------------------------
Strategic Partners II 129,867 Less than 1%
-------------------------------------------------------------------------------------------------
TCV II, C.V. 145,327 Less than 1%
-------------------------------------------------------------------------------------------------
TCVF 174,965 Less than 1%
-------------------------------------------------------------------------------------------------
Mr. Hoag 9,204,637 44.58%
-------------------------------------------------------------------------------------------------
Mr. Kimball 9,204,637 44.58%
(a) all percentages in this table are based on the 20,648,074 shares of Common
Stock of the Company outstanding, as reported on the Company's 424(b)(4) filed
with the Securities and Exchange Commission on May 23, 2002.
Each of TCV IV and Strategic Partners IV (together the "TCV IV Funds") has the
sole power to dispose or direct the disposition of the shares of Common Stock
and warrants to acquire Common Stock which it holds directly, and will have the
sole power to dispose or direct the disposition of the shares of Common Stock
acquirable upon exercise of its warrants. Each of the TCV IV Funds has the sole
power to vote or direct the vote of its respective shares of Common Stock and
will have the sole power to vote or direct the vote the Common Stock acquirable
upon exercise of its respective warrants. Management IV as the sole general
partner of each of the TCV IV Funds may also be deemed to have the sole power to
dispose or direct the disposition of the shares of Common Stock and the warrants
to acquire Common Stock held by the TCV IV Funds, and will have the sole power
to dispose or direct the disposition of the shares of Common Stock acquirable
upon exercise of the TCV IV Funds' warrants, as well as to have the sole power
to vote or direct the vote of the shares of Common Stock held by the TCV IV
Funds and will have the power to vote or direct the vote the shares of Common
Stock acquirable upon exercise of the TCV IV Funds' warrants. Management IV
disclaims beneficial ownership of such securities except to the extent of its
pecuniary interest therein.
Each of TCV II, V.O.F., TCV II, L.P., TCV II (Q), Strategic Partners II and TCV
II, C.V. (together the "TCV II Funds") has the sole power to dispose or direct
the disposition of the shares of Common Stock and warrants to acquire Common
Stock which it holds directly, and will have the sole power to dispose or direct
the disposition of the shares of Common Stock acquirable upon exercise of its
warrants. Each of the TCV II Funds has the sole power to vote or direct the vote
of its respective shares of Common Stock and will have the sole power to vote or
direct the vote the Common Stock acquirable upon exercise of its respective
warrants. Management II as the sole general partner of TCV II, L.P., TCV II (Q)
and Strategic Partners II and as the sole investment general partner of TCV II,
V.O.F. and TCV II, C.V. may also be deemed to have the sole power to dispose or
direct the disposition of the shares of Common Stock and the warrants to acquire
Common Stock held by the TCV II Funds, and will have the sole power to dispose
or direct the disposition of the shares of Common Stock acquirable upon exercise
of the TCV II Funds' warrants, as well as to have the sole power to vote or
direct the vote of the shares of Common Stock held by the TCV II Funds and will
have the power to vote or direct the vote the shares of Common Stock acquirable
upon exercise of the TCV II Funds' warrants. Management II disclaims beneficial
ownership of such securities except to the extent of its pecuniary interest
therein.
TCVF has the sole power to dispose or direct the disposition of the shares of
Common Stock and warrants to acquire Common Stock which it holds directly, and
will have the sole power to dispose or direct the disposition of the shares of
Common Stock acquirable upon exercise of its warrants. TCVF has the sole power
to vote or direct the vote of its respective shares of Common Stock and will
have the sole power to vote or direct the vote the Common Stock acquirable upon
exercise of its respective warrants. Management F as the sole general partner of
TCVF may also be deemed to have the sole power to dispose or direct the
disposition of the shares of Common Stock and the warrants to acquire Common
Stock held by TCVF, and will have the sole power to dispose or direct the
disposition of the shares of Common Stock acquirable upon exercise of TCVF's
warrants, as well as to have the sole power to vote or direct the vote of the
shares of Common Stock held by TCVF and will have the power to vote or direct
the vote the shares of Common Stock acquirable upon exercise of TCVF's warrants.
Management F disclaims beneficial ownership of such securities except to the
extent of its pecuniary interest therein.
Messrs. Hoag and Kimball are the managing members of Management IV, Management
II and Management F. Under the operating agreements of Management IV, Management
II and Management F, each of Messrs. Hoag and Kimball have the independent power
to cause the funds managed by Management IV, Management II and Management F to
buy and sell securities of publicly traded portfolio companies; however, in
general, they must act by unanimous consent with respect to all other matters,
including directing the voting of such securities. As a result, each of Messrs.
Hoag and Kimball may also be deemed to have the sole power to dispose or direct
the disposition of the shares of Common Stock and the warrants to acquire Common
Stock held respectively by the TCV IV Funds, the TCV II Funds and TCVF, and will
have the sole power to dispose or direct the disposition of the shares of Common
Stock acquirable upon exercise of the TCV IV Funds', TCV II Funds', and TCVF's
respective warrants, as well as to have the shared power to vote or direct the
vote of the respective shares of Common Stock held by the TCV IV Funds, the TCV
II Funds and TCVF, and will have the shared power to vote or direct the vote the
shares of Common Stock acquirable upon exercise of the TCV IV Funds', the TCV II
Funds' and TCVF's respective warrants. Messrs. Hoag and Kimball disclaim
beneficial ownership of the securities owned by TCV IV Funds, TCV II Funds and
TCVF except to the extent of their pecuniary interest therein.
The Reporting Persons may be deemed to be acting as a group in relation to their
respective holdings in the Company but do not affirm the existence of any such
group.
Except as set forth in this Item 5(a) - (b), each of the Reporting Persons
disclaims beneficial ownership of any Common Stock owned beneficially or of
record by any other Reporting Person.
(c). Except as set forth herein, and as set forth in the Reporting Persons'
initial statement on Schedule 13D with respect to the Company's securities,
filed May 29, 2002 (which is incorporated by reference herein), none of the
Reporting Persons has effected any transaction in the Common Stock during the
past 60 days.
(d). Not applicable.
(e). Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
SECURITIES OF THE ISSUER.
Except as set forth herein and as set forth in the Reporting Persons' initial
statement on Schedule 13D with respect to the Company's securities, filed May
29, 2002 (which is incorporated by reference herein), none of the Reporting
Persons has any contracts, arrangements, understandings or relationships (legal
or otherwise) with any person with respect to any securities of Company,
including but not limited to any contracts, arrangements, understandings or
relationships concerning the transfer or voting of such securities, finder's
fees, joint ventures, loan or option arrangements, puts or calls, guarantees of
profits, division of profits or losses, or the giving or withholding of proxies.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit 1 Joint Filing Agreement (incorporated by reference from Exhibit 1 to
the Schedule 13D relating to the common stock of Netflix, Inc. filed
on May 29, 2002)
Exhibit 2 Statement Appointing Designated Filer and Authorized Signatories
dated November 5, 2001 (incorporated by reference from Exhibit A to
the Schedule 13D/A relating to the common stock of Digital Generation
Systems, Inc. filed on March 21, 2002)
SIGNATURE
After reasonable inquiry and to the best of each of the undersigned's knowledge
and belief, each of the undersigned certifies that the information set forth in
this statement is true, complete and correct.
Dated: August 12, 2002
TCV IV, L.P.
By: /s/ Carla S. Newell
---------------------------------
Name: Carla S. Newell
Its: Authorized Signatory
TCV IV STRATEGIC PARTNERS, L.P.
By: /s/ Carla S. Newell
---------------------------------
Name: Carla S. Newell
Its: Authorized Signatory
TECHNOLOGY CROSSOVER MANAGEMENT IV, L.L.C.
By: /s/ Carla S. Newell
---------------------------------
Name: Carla S. Newell
Its: Authorized Signatory
TCV II, V.O.F.
By: /s/ Carla S. Newell
---------------------------------
Name: Carla S. Newell
Its: Authorized Signatory
TECHNOLOGY CROSSOVER VENTURES II, L.P.
By: /s/ Carla S. Newell
---------------------------------
Name: Carla S. Newell
Its: Authorized Signatory
TCV II (Q), L.P.
By: /s/ Carla S. Newell
---------------------------------
Name: Carla S. Newell
Its: Authorized Signatory
TCV II STRATEGIC PARTNERS, L.P.
By: /s/ Carla S. Newell
---------------------------------
Name: Carla S. Newell
Its: Authorized Signatory
TECHNOLOGY CROSSOVER VENTURES II, C.V.
By: /s/ Carla S. Newell
---------------------------------
Name: Carla S. Newell
Its: Authorized Signatory
TECHNOLOGY CROSSOVER MANAGEMENT II, L.L.C.
By: /s/ Carla S. Newell
---------------------------------
Name: Carla S. Newell
Its: Authorized Signatory
TCV FRANCHISE FUND, L.P.
By: /s/ Carla S. Newell
---------------------------------
Name: Carla S. Newell
Its: Authorized Signatory
TCVF MANAGEMENT, L.L.C.
By: /s/ Carla S. Newell
---------------------------------
Name: Carla S. Newell
Its: Authorized Signatory
JAY C. HOAG
/s/ Carla S. Newell
------------------------------------
By: Carla S. Newell, Authorized Signatory
RICHARD H. KIMBALL
/s/ Carla S. Newell
-------------------------------------
By: Carla S. Newell, Authorized Signatory
EXHIBIT INDEX
Exhibit 1 Joint Filing Agreement (incorporated by reference from Exhibit 1 to
the Schedule 13D relating to the common stock of Netflix, Inc. filed
on May 29, 2002)
Exhibit 2 Statement Appointing Designated Filer and Authorized Signatories
dated November 5, 2001 (incorporated by reference from Exhibit A to
the Schedule 13D/A relating to the common stock of Digital Generation
Systems, Inc. filed on March 21, 2002)