Netflix Chairman Reed Hastings is leaving the streaming service he co-founded 29 years ago as the company regains its footing after it lost its $72 billion deal for Warner Bros Discovery.

In a letter to investors released on Thursday (April 16), Netflix said Hastings will not stand for re-election at its annual meeting in June and plans to focus on philanthropy and other pursuits.

The company's stock plunged around 8% on the news of Hastings' departure. The co-founder is credited with helping to revolutionize how movies and television shows are delivered in homes, upending Hollywood's business model.

Netflix reaffirmed in a 14-page shareholder letter that its mission remains "ambitious and unchanged" - to entertain the world, providing movies and series for many tastes, cultures and languages. The company's full-year outlook remained unchanged.

The company did not say how it plans to spend the $2.8 billion termination fee it received after losing the Warner Bros movie studio and HBO, and lifted its earnings per share to $1.23 in the first quarter compared with 66 cents per share in the same quarter last year.

Revenue rose to $12.25 billion, an increase of 16% from the year-ago period, modestly exceeding analyst forecasts of $12.18 billion.

Netflix, which long told investors that a Warner Bros acquisition was a "nice to have, not need to have" proposition, highlighted areas of future growth.

The company said its investment in expanding its entertainment offerings with video podcasts, and live entertainment - such as the World Baseball Classic in Japan - is fueling engagement. It plans to use technology to improve the user experience and improve monetization, as advertising revenue remains on track to reach $3 billion in 2026 - a twofold increase from a year ago.

-Roselle Chen/Reuters