Disney to Acquire Netflix?

Last week brought rumors that The Walt Disney Company was exploring the idea of bidding to buy Twitter. Now MarketWatch reports that rumors are swirling that the Mouse might be looking to acquire Netflix. This has caused shares of Netflix to rise more than 4% today although neither company has commented on the potential deal.


From MarketWatch:

The timing of a possible Netflix buy would be tough to call, according to R.W. Baird analyst William Power, who wrote in a note to clients Netflix has been the subject of “recent M&A rumors,” and “whether Disney, Apple or someone else, Netflix could become a target.”

Power rates Netflix shares neutral with a price target of $94, which is 8.4% below current levels.

For Disney—with its record for successful, high-profile acquisitions—some analysts say making a play for a company to move Disney further into streaming video, specifically its sports and ESPN content, makes perfect sense.

Obviously, Disney has made some impressive buys over the years but not all have been runaway hits. With that in mind, after word of the company’s apparent interest in Twitter went around, a Citi analyst said the bank would advise against such a purchase… although they did admit they were bearish on Disney buying Marvel at the time of the deal and “were wrong.”

So will Netflix — which Iger has said is “more friend than foe” — officially join the family? Only time will tell.