28 November 2011

Doubting Netflix Will Be Acquired

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+John Cook over at Geekwire did a blog post days ago mulling around the chance of Netflix becoming acquisition bait.

Will Netflix become acquisition bait?

I think that Netflix would only be willing to sell for a 50% over market cap premium price at minimum. That means, even as it has fallen BAAAD. Netflix is still a over 5 billion dollars acquisition. A high-risk acquisition very depending on key executives staying in the company and for the company and with a at the moment damaged brand. So, my educated guess is no. You would need to be crazy to try to buy Netflix. Unless you have a video streaming division that can absorb it completely and got the power to be able to deal with content owners without being at disadvantage.

The only ones able to do that at that price would be Amazon and Microsoft. But would they be willing to do it, considering they didn't went all the way for the cheaper and easier to manage Hulu?

In the case of everyone else, most would not really be able to handle such a big transaction or are just not able to pay for it.

And just to keep record of it. This is not the first time i have written on this. Had already posted on it. In specific about the idea of Amazon buying Netflix.

While things have gone for the worse for Netflix right now. In the case of Amazon i do maintain what i said at my post from September.

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