Netflix-building

Netflix Stock Price Rises on Rumors of Disney Acquisition

by Paige Albiniak  |  10.04.2016

Netflix’s closely-watched share price has been up this week as rumors swirled that The Walt Disney Co. is considering acquiring the over-the-top streaming company.

At the end of the day on Tuesday, Netflix’s stock closed at $102.34 per share, down from its short-term high of $104.44 but up over $100 per share to its highest levels since May. Netflix split its stock seven ways in June 2015, with each split share being worth about $100. At one point, the stock hit a high of $133.27, but of late it has rarely climbed past $100.

The rumors started when Robert W. Baird analyst Will Power wrote in a note that Disney, Apple or another firm might be interested in acquiring Netflix, which has a market cap of more than $44 billion, meaning that any company interested in acquiring it would need deep pockets. Rumors aside, Netflix itself does not seem particularly interested in being acquired.

Disney, which owns Marvel, has become a main supplier to Netflix, creating several Marvel-based shows for the service, including Daredevil, Jessica Jones, the just-premiered Luke Cage and the upcoming Iron Fist.

Netflix also just began airing Disney movies, for which the service has exclusive subscription streaming rights. The deal includes new titles from Disney-owned Marvel, Pixar and Lucasfilm, such as The Avengers, Iron Man and Star Wars: The Force Awakens.

Rumors also have been swirling that Disney is kicking the tires at Twitter. Disney made a major investment in the streaming market with its $1 billion investment in a 33% stake in Major League Baseball’s BAM Tech unit in August.

Netflix’s next earnings report comes out Oct. 17.

READ MORE: Bloomberg, Variety

Tags:   Netflix Disney
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