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. 2)
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)
November 5, 2003
(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)
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(1) Name of Reporting Person
TCV IV, L.P.
See item 2 for identification of the General Partner
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(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
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(3) SEC Use Only
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(4) Source of Funds
AF, OO
------------------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e) [ ]
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(6) Citizenship or Place of Organization
DELAWARE
------------------------------------------------------------------------------
(7) Sole Voting Power
Number of 6,082,079 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 6,082,079 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
6,082,079 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)
24.56%
------------------------------------------------------------------------------
(14) Type of Reporting Person
PN
------------------------------------------------------------------------------
(A) Please see Item 5. Includes warrants which can be immediately exercised for
a total of 3,471,287 shares of Common Stock.
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(1) Name of Reporting Person
TCV IV Strategic Partners, L.P.
See item 2 for identification of the General Partner
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(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
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(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 226,793 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 226,793 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
226,793 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 129,439 shares of Common Stock.
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(1) Name of Reporting Person
Technology Crossover Management IV, L.L.C.
See item 2 for identification of the Managing Members
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(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
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(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 6,314,574 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 6,314,574 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
6,314,574 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)
25.50%
------------------------------------------------------------------------------
(14) Type of Reporting Person
OO
------------------------------------------------------------------------------
(A) Please see Item 5. Includes warrants which can be immediately exercised for
a total of 3,600,726 shares of Common Stock.
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(1) Name of Reporting Person
Technology Crossover Ventures II, L.P.
See item 2 for identification of the General Partner
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(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
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(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 837,537 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 837,537 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
837,537 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)
3.38%
------------------------------------------------------------------------------
(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.
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(1) Name of Reporting Person
TCV II (Q), L.P.
See item 2 for identification of the General Partner
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(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
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(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 643,910 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 643,910 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
643,910 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)
2.60%
------------------------------------------------------------------------------
(14) Type of Reporting Person
PN
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(A) Please see Item 5. Includes warrants which can be immediately exercised for
a total of 335,041 shares of Common Stock.
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(1) Name of Reporting Person
TCV II, V.O.F.
See item 2 for identification of the Investment General Partner
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(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
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(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 27,207 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 27,207 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
27,207 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.
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(1) Name of Reporting Person
TCV II Strategic Partners, L.P.
See item 2 for identification of the General Partner
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(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
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(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 114,271 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 114,271 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
114,271 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.
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(1) Name of Reporting Person
Technology Crossover Ventures II, C.V.
See item 2 for identification of the Investment General Partner
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(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
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(3) SEC Use Only
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(4) Source of Funds
AF, OO
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(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
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(7) Sole Voting Power
Number of 127,874 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 127,874 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
127,874 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.
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(1 ) Name of Reporting Person
Technology Crossover Management II, L.L.C.
See item 2 for identification of the Managing Members
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(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
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(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 1,750,799 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 1,750,799 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
1,750,799 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)
7.07%
------------------------------------------------------------------------------
(14) Type of Reporting Person
OO
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(A) Please see Item 5. Includes warrants which can be immediately exercised for
a total of 910,981 shares of Common Stock.
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(1) Name of Reporting Person
TCV Franchise Fund, L.P.
See item 2 for identification of the General Partner
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(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
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(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 -0- SHARES OF COMMON STOCK
Shares ------------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by -0- SHARES OF COMMON STOCK
Each ------------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With -0- SHARES OF COMMON STOCK
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
-0- SHARES OF COMMON STOCK
------------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain Shares [X]
------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
0%
------------------------------------------------------------------------------
(14) Type of Reporting Person
PN
------------------------------------------------------------------------------
------------------------------------------------------------------------------
(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 -0- SHARES OF COMMON STOCK
Shares --------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by -0- SHARES OF COMMON STOCK
Each --------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With -0- SHARES OF COMMON STOCK
--------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
-0- SHARES OF COMMON STOCK
------------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain Shares [ ]
------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
0%
------------------------------------------------------------------------------
(14) Type of Reporting Person
OO
------------------------------------------------------------------------------
------------------------------------------------------------------------------
(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 8,110,030 SHARES OF COMMON STOCK (A)
Each --------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 8,110,030 SHARES OF COMMON STOCK (A)
--------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
8,110,030 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)
32.74%
------------------------------------------------------------------------------
(14) Type of Reporting Person
IN
------------------------------------------------------------------------------
(A) Please see Item 5. Includes warrants which can be immediately exercised for
a total of 4,511,707 shares of Common Stock. Also includes 44,657 shares held of
record by the Reporting Person's family trust of which Reporting Person
disclaims beneficial ownership except to the extent of his pecuniary interest
therein.
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(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 8,107,919 SHARES OF COMMON STOCK (A)
Each --------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 8,107,919 SHARES OF COMMON STOCK (A)
--------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
8,107,919 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)
32.74%
------------------------------------------------------------------------------
(14) Type of Reporting Person
IN
------------------------------------------------------------------------------
(A) Please see Item 5. Includes warrants which can be immediately exercised for
a total of 4,511,707 shares of Common Stock. Also includes 42,546 shares held of
record by the Reporting Person's family trust of which Reporting Person
disclaims beneficial ownership except to the extent of his pecuniary interest
therein.
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 all entities and persons numbered
(1) through (9), (12) and (13) and on behalf of the entities numbered (10) and
(11). (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., and Management II 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. 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., and
Management II is 528 Ramona Street, Palo Alto, California 94301.
TCVF and Management F were engaged in the business of investing in securities of
privately and publicly held companies but both TCVF and Management F have been
dissolved. Management F was the sole general partner of TCVF. The address of the
principal business and office of each of TCVF and Management F was 528 Ramona
Street, Palo Alto, California 94301.
Mr. Hoag and Mr. Kimball are the managing members of Management IV and
Management II and were managing members of 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 8/12/02 57,843 $10.9333
Strategic Partners IV 8/12/02 2,157 $10.9333
TCV IV 8/13/02 38,562 $10.9603
Strategic Partners IV 8/13/02 1,438 $10.9603
TCV IV 8/14/02 28,922 $11.0352
Strategic Partners IV 8/14/02 1,078 $11.0352
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.
On April 11, 2003 TCV IV net exercised a warrant to purchase shares of the
Company's Common Stock at an exercise price of $3.00 per share. As a result of
the net exercise, TCV IV surrendered one share of Common Stock underlying the
warrant and received one share of Common Stock upon exercise ("Warrant Share").
The payment of the exercise price was through the surrender of the right to buy
one share of Common Stock of the Company.
On May 8, 2003 TCVF net exercised a warrant to purchase 93,425 shares of the
Company's Common Stock at an exercise price of $3.00 per share. As a result of
the net exercise, TCVF surrendered 12,851 shares of Common Stock underlying the
warrant and received 80,574 shares of Common Stock upon exercise ("TCVF Warrant
Shares").
The payment of the exercise price was through the surrender of the right to buy
12,851 shares of Common Stock of the Company.
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 and/or Warrant Share 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 November 6, 2003, TCV IV, Strategic
Partners IV, TCV II, V.O.F., TCV II, L.P., TCV II (Q), Strategic Partners II,
and TCV II, C.V. (the "Funds") owned directly an aggregate of 8,059,671 shares
of Common Stock and Management IV, Management II, Management F, Mr. Hoag and Mr.
Kimball owned directly and indirectly an aggregate of 8,152,576 shares of Common
Stock as follows (including indirect ownership of shares held by the Funds):
Number of Total Shares Percentage of Outstanding Shares
Name of Investor (including warrants) (including warrants) (*)
---------------- -------------------- ------------------------
TCV IV 6,082,079 24.56% (**)
Strategic Partners IV 226,793 Less than 1% (**)
Management IV 6,314,574 25.50% (**)(*****)
TCV II, V.O.F 27,207 Less than 1% (**)
TCV II, L.P. 837,537 3.38% (**)
TCV II (Q) 643,910 2.60% (**)
Strategic Partners II 114,271 Less than 1% (**)
TCV II, C.V 127,874 Less than 1% (**)
Management II 1,750,799 7.07% (**)
Mr. Hoag 8,110,030 32.74% (**)(***)(*****)
Mr. Kimball 8,107,919 32.74% (**)(****) (*****)
(*) all percentages in this table are based on the 24,767,319 shares of Common
Stock of the Company outstanding, as reported on the Company's Form 10-Q filed
with the Securities and Exchange Commission on October 31, 2003.
(**) Certain Reporting Persons disclaim beneficial ownership as set forth below.
(***) Includes 44,657 shares held by the Reporting Person's family trust of
which Reporting Person disclaims beneficial ownership except to the extent of
his pecuniary interest therein.
(****) Includes 42,546 shares held by the Reporting Person's family trust of
which Reporting Person disclaims beneficial ownership except to the extent of
his pecuniary interest therein.
(*****) Includes 5,702 shares held directly by Management IV.
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. Management IV has the sole power to dispose or
direct the disposition of the shares of Common Stock held directly by Management
IV, as well as to have the sole power to vote or direct the vote of the shares
of Common Stock held directly by Management IV.
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.
Messrs. Hoag and Kimball are the managing members of Management IV and
Management II. Under the operating agreements of Management IV and Management
II, each of Messrs. Hoag and Kimball have the independent power to cause the
funds managed by Management IV and Management II 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 and 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 IV Funds' and the TCV II Funds' 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 and the TCV II Funds,
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' and the TCV II Funds'
respective warrants. Messrs. Hoag and Kimball disclaim beneficial ownership of
the securities owned by TCV IV Funds and TCV II Funds 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.
On April 11, 2003 TCV IV net exercised a warrant to purchase Common Stock and as
a result surrendered one share of Common Stock underlying the warrant and
received the Warrant Share upon exercise.
On May 7, 2003 TCVF sold 81,450 shares of Common Stock at a $23.16 per share.
On May 8, 2003 TCVF net exercised a warrant to purchase Common Stock and as a
result surrendered 12,851 shares of Common Stock underlying the warrant and
received the TCVF Warrant Shares upon exercise.
On May 8, 2003 TCVF sold 80,574 shares of the Company's Common Stock at $22.80
per share.
On November 5, 2003, as part of an in-kind pro-rata distribution to their
partners, the funds listed below distributed the following shares to their
limited partners, without consideration:
Name of Investor Shares Distributed
TCV IV 664,524
Strategic Partners IV 30,900
TCV II, V.O.F. 3,034
TCV II, L.P. 91,871
TCV II (Q) 71,807
Strategic Partners II 15,431
TCV II, C.V. 14,260
On November 5, 2003, as part of an in-kind pro-rata distribution to their
partners, the funds listed below distributed the following shares to their
general partners, without consideration:
Name of Investor Shares Distributed
TCV IV 165,571
Strategic Partners IV 53
TCV II, V.O.F. 679
TCV II, L.P. 22,437
TCV II (Q) 16,075
Strategic Partners II 165
TCV II, C.V. 3,193
On November 5, 2003, as part of an in-kind pro-rata distribution, the entities
listed below distributed the following shares to their members, without
consideration:
Name of Investor Shares Distributed
Management IV 155,156
Management II 42,549
On November 6, 2003 Management IV sold 4,766 shares of common stock of the
Company at $55.75 per share.
(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: November 10, 2003
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
JAY C. HOAG
By: /s/ Carla S. Newell
---------------------------------
Name: Carla S. Newell
Its: Authorized Signatory
RICHARD H. KIMBALL
By: /s/ Carla S. Newell
---------------------------------
Name: Carla S. Newell
Its: 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)