Disney to buy Netflix?

[cannastop]

http://www.bloomberg.com/news/articles/2016-10-03/netflix-rises-on-takeover-speculation-as-quarterly-earnings-loom

 

There are rumors that Disney wants to buy Netflix, which would be an interesting proposition. It's not likely, because Netflix doesn't want to be taken over.

 

But what would Disney do if it had Netflix? We know that they want to grow profits in a time of cord-cutting, and what better way of doing that than buying the competition?

[BadAtGender]

Netflix' market cap is currently about $45 billion.

 

Disney's is $150 billion.

 

So in order to acquire Netflix, they'd probably have to pony up and equivalent of a quarter to a third of the value of the entire Disney company. 

 

Netflix is over an order of magnitude bigger than what Pixar, Marvel, or Lucasfilm were valued for their acquisition. And, as you say, Netflix doesn't seem to want to be acquired, so it's not like they're willing to give a discount. I'd hazard to guess that even if Disney might WANT to acquire Netflix, it can't.

 

To put it another way, Netflix is about as valuable as 21s Century Fox, two thirds as valuable as Time Warner, and three times as valuable as Viacom. Actually, given the rights issues with X-Men, FF, and Star Wars episode 4, it seems more likely to me that Disney would acquire Fox than Netflix. But in either case, it'd probably be a company merger.

[cannastop]

24 minutes ago, DamienRoc said:

Netflix' market cap is currently about $45 billion.

 

Disney's is $150 billion.

 

So in order to acquire Netflix, they'd probably have to pony up and equivalent of a quarter to a third of the value of the entire Disney company. 

 

Netflix is over an order of magnitude bigger than what Pixar, Marvel, or Lucasfilm were valued for their acquisition. And, as you say, Netflix doesn't seem to want to be acquired, so it's not like they're willing to give a discount. I'd hazard to guess that even if Disney might WANT to acquire Netflix, it can't.

 

To put it another way, Netflix is about as valuable as 21s Century Fox, two thirds as valuable as Time Warner, and three times as valuable as Viacom. Actually, given the rights issues with X-Men, FF, and Star Wars episode 4, it seems more likely to me that Disney would acquire Fox than Netflix. But in either case, it'd probably be a company merger.

Even if Netflix wanted to sell itself to Disney, it wouldn't be for a discount. Acquisitions usually always end in big payouts.

 

Disney probably wouldn't want all of 21st Century Fox, though. Probably just its movie business.

[TalismanRing]

39 minutes ago, DamienRoc said:

Netflix' market cap is currently about $45 billion.

 

Disney's is $150 billion.

 

So in order to acquire Netflix, they'd probably have to pony up and equivalent of a quarter to a third of the value of the entire Disney company. 

 

Netflix is over an order of magnitude bigger than what Pixar, Marvel, or Lucasfilm were valued for their acquisition. And, as you say, Netflix doesn't seem to want to be acquired, so it's not like they're willing to give a discount. I'd hazard to guess that even if Disney might WANT to acquire Netflix, it can't.

 

To put it another way, Netflix is about as valuable as 21s Century Fox, two thirds as valuable as Time Warner, and three times as valuable as Viacom. Actually, given the rights issues with X-Men, FF, and Star Wars episode 4, it seems more likely to me that Disney would acquire Fox than Netflix. But in either case, it'd probably be a company merger.

 

Netflix has a huge market cap but it's P/E ratio is currently an astronomical 316 vs Disney's 16 and is based on high growth expectations rather than current profits

 

It's fluctuated wildly in stock price over the past several years.  Some poor or mediocre future growth projections, or another price hike and it could plummet like it did in 2011/2012 when it dropped 75%+ of it's market value.  I can't see it as a good buy even if Disney could afford it's current inflated price.

Edited October 4, 2016 by TalismanRing

[DeeCee]

And Disney isn't buying Fox unless a certain individual wants to sell.

[Water Bottle]

30 minutes ago, DeeCee said:

And Disney isn't buying Fox unless a certain individual wants to sell.

 

There's a lot of reasons Disney won't buy Fox regardless of Robert Murdoch.

 

Anyways I don't think Disney would want Netflix either. They have Hulu which is moving slowly to be a lot like Netflix (subscription only, it's cheap to have a subscription that gets rid of ads). I imagine if Disney did buy Netflix, they'd have to sell their Hulu ownership share or they'll run into legal problems. I'm not sure they want to do that anymore not after Hulu is finally becoming viable (Deadline last year stated Hulu was on it's way to becoming an $8 billion asset) and they've invested a lot of money into it.

[Kalo]

Disney has enough, let Netflix be, they are fine how they are.

Edited October 4, 2016 by Kalo

[Fullbuster]

Is Netflix Disney’s next big buy and is Reed Hastings its next CEO?

 

Last month, Netflix crushed Wall Street’s expectations with its Q3 earnings and surprisingly spry international subscriber growth. But, make no mistake, it’s all-out war in our Internet-driven and increasingly mobile-first Media 2.0 world of OTT premium video.  And, Netflix is directly in the line of sight and vulnerable both short and long-term.

AT&T, in the most audacious bid to challenge Netflix to date, just dropped its bombshell $85 billion acquisition of traditional media institution Time Warner. The telecom company ultimately will package and feature Time Warner content (Warner Bros., HBO, Turner) in new ways in its soon-to-launch $35 per month DirecTV Now service that will showcase live linear premium television channels that Netflix doesn’t have.

 

https://techcrunch.com/2016/11/13/is-netflix-disneys-next-big-buy-and-is-reed-hastings-its-next-ceo/

 

 

If it's true it's huge, allowing Disney to expanding its reach even more, to expand its catalog, to diversify even more and to be even more powerful in media.

 

[Fullbuster]

And at least for now there is a deal giving Netflix a 3-year exclusivity for Disney movies, including Marvel ones, that's a clear advantage against Hulu and Amazon.

[TimmyRiggins]

I doubt  this is ever going to happen, Netfilx doesn't need this, and I wonder how that would impact Netflix, their originals, etc, I'm not sure it would be the best. 

[Fullbuster]

7 minutes ago, TimmyRiggins said:

I doubt  this is ever going to happen, Netfilx doesn't need this, and I wonder how that would impact Netflix, their originals, etc, I'm not sure it would be the best. 

 

I'm not sure Netflix doesn't need this, the competition is growing, its growth is slowing, their CEO and shareholders could think it's better to sell it when it is at its apex, before an eventual decline or stagnation. With Disney Netflix would be certain to have the financial muscle to expand and survive.

[Jason]

This article best sums up why I think it's a bad idea for both parties:

 

3 Reasons Why Disney Isn't Buying Netflix

[vc2002]

If Disney is going to buy Netflix, they better do it on black Friday.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yeah I know it's a terrible joke...

 

 

 

 

 

 

Edited November 20, 2016 by vc2002

[Fullbuster]

On 20/11/2016 at 2:51 AM, vc2002 said:

If Disney is going to buy Netflix, they better do it on black Friday.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yeah I know it's a terrible joke...

 

 

 

 

 

 

 

Yes it is

[DeeCee]

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