advertisement
Forums

The Forum is sponsored by 
 

AAPL stock: Click Here

You are currently viewing the Tips and Deals forum
rumor has it?!.....Netflix shares rise over takeover rumors.....
Posted by: NewtonMP2100
Date: October 04, 2016 06:13PM
.....Disney....perhaps.....??


Netflix Investors Apparently Excited Over Disney Acquisition Rumor

....Netflix stock climbed above $100 per share on Monday, to its highest levels since May — fueled by a rumor circulating on Wall Street that Disney might possibly be interested in acquiring the video-streaming leader.

Netflix stock closed up 4.1% Monday, to $102.63 per share, on higher-than-usual volume. On Tuesday, Netflix shares climbed as high as $104.44 in early trading, before settling down to below the opening price of $103.50.

Rumors that the Mouse House or possibly Apple might be interested in snapping up Netflix — which currently has a market cap exceeding $44 billion — were alluded to in a research note by Robert W. Baird & Co. analyst Will Power. Regarding “recent M&A rumors,” Power wrote, “whether Disney, Apple or someone else, Netflix could become a target.”


Netflix investors have been concerned about the company’s slowing growth in the U.S., as it undertakes a shift to move all subscribers to the $9.99-per-month standard tier. The stock, which has a notoriously volatile history, is trading well off its $133.27 per share 52-week high.

Speculation that Disney might be looking to make a major deal for Netflix comes after the media conglomerate was said to be looking at buying Twitter, according to a Bloomberg report. Disney also has demonstrated a keen interest in the streaming-video market: In August, it announced the purchase of a 33% stake in Major League Baseball’s BAM Tech unit for $1 billion.

The first issue for Disney would be trying to justify the massive purchase price: Netflix trades at a whopping price-earnings ratio of around 320, and any deal would have a negative impact on Disney’s balance sheet and earnings. Disney also would face other potential hurdles if it actually moved to buy Netflix, including regulatory scrutiny and the fact that rival studios would be even more reluctant to play ball with a Disney-owned Netflix.



why not.....they seem to be buying everything else........?!



_____________________________________

I reject your reality and substitute my own!



Edited 1 time(s). Last edit at 10/04/2016 06:14PM by NewtonMP2100.
Options:  Reply • Quote
Re: rumor has it?!.....Netflix shares rise over takeover rumors.....
Posted by: Jack D.
Date: October 04, 2016 06:50PM
So what do you buy for the mouse that has everything?



- Jack D.




New tasteless sig coming soon!
Options:  Reply • Quote
Re: rumor has it?!.....Netflix shares rise over takeover rumors.....
Posted by: davemchine
Date: October 04, 2016 08:09PM
I think a purchase by Apple would have been good for Apple but probably not for Netflix. Disney seems like a good fit although I would worry about price changes. Disney has a way of extracting maximum dollars from people.
Options:  Reply • Quote
Re: rumor has it?!.....Netflix shares rise over takeover rumors.....
Posted by: gabester
Date: October 04, 2016 09:44PM
Quote
davemchine
I think a purchase by Apple would have been good for Apple but probably not for Netflix customers.

FTFY. Just what the consumer ordered - more walled gardens and mutually exclusive content licenses that require not only to pay to a broadband provider in the US.

It was nice for those few years when Netflix had an expansive library before competitors got into the streaming content game and you could conceivably cut the cord - assuming you could live without live sports - and save significant money. Now, what you save on your cable TV you pay out to get Netflix + Amazon Prime + Hulu et cetera.
Options:  Reply • Quote
Re: rumor has it?!.....Netflix shares rise over takeover rumors.....
Posted by: spacescape
Date: October 05, 2016 07:11AM
I agree... Before you know it "you need Netflix for Disney movies / programing", "Amazon Prime for this", "HBO Go for their content"... Before you know it you are paying what you were paying for cable but have to use several services just to do what you could with one service. Oh, and I noticed lots of slowdowns with Netflix over Comcast / xfinity... I personally think they are slowing down the Netflix stream.
Options:  Reply • Quote
Sorry, only registered users may post in this forum.

Click here to login

Online Users

Guests: 93
Record Number of Users: 186 on February 20, 2020
Record Number of Guests: 5122 on October 03, 2020