Share value in Netflix has been trending upward this week on speculation of a possible takeover by Disney, hitting a high of $104.44 before cooling down a bit. Netflix hasn’t traded at that level since this past May.
In a research note to investors, Robert W. Baird & Co. analyst Will Power said that in regard to recent merger and acquisition rumors, Netflix could become a target for Apple, Disney or someone else.
Just last week, rumors emerged claiming Disney had hopped on the bandwagon of companies interested in purchasing Twitter.
Disney has shown interest in the streaming space, having acquired a 33 percent stake in Major League Baseball’s BAMTech back in August for $1 billion. BAMTech handles streaming duties for the NHL, HBO, MLB and the WWE.
Whether or not anything will come of the speculation remains to be seen and as Drexel Hamilton analyst Tony Wible notes, Netflix hasn’t exactly shown that it wants to be acquired.
If Disney did go after Netflix, it would have to come up with a massive amount of money to fund the purchase and get the blessing of regulators. What’s more, Netflix would have an even harder time landing licensing deals from rival studios if it were owned by Disney.