Netflix is pledging 2 percent of its cash holdings, initially up to $100 million, to provide economic opportunity for the black community.
The streaming giant, which has a market capitalization of just over $200 billion, referenced the longtime racial wealth gap in the U.S. in its Tuesday announcement.
“We believe bringing more capital to these communities can make a meaningful difference for the people and businesses in them, helping more families buy their first home or save for college, and more small businesses get started or grow,” said Aaron Mitchell, director of talent acquisition, and Shannon Alwyn, director, treasury, at Netflix.
The tech company will put $25 million into a newly established “Black Economic Development Fund,” which will invest in black financial institutions and black economic development corporations.
Another $10 million will go to Hope Credit Union to provide economic opportunities for underprivileged communities in the Deep South. Netflix has not announced how the remaining funds will be used.
“Stories like Ava DuVernay’s ’13TH’ and Explained’s ‘Racial Wealth Gap’ show how systemic racism in America has sustained a centuries-long financial gap between Black and White families,” they explained in the blog post.
Multiple tech giants, including Amazon, Google and Apple, have pledged millions of dollars to various racial justice initiatives in the wake of nationwide protests against systemic racism and police brutality following the death of George Floyd while in the custody of the Minneapolis Police Department.