A rumor says that Disney is looking at multiple options. This includes a potential purchase of Twitter. But thats not whats most interesting, The markets interest is the possible acquisition of Netflix.
A source says that Disney might be interested in buying the shares of Netflix (1.23%) Up by more than 6% on Monday, adding more than $2 billion to the company’s market capitalization. Disney is one of the strongest media companies in the world with an amazing track record. Not only these two large companies but Disney has a string of smart acquisitions such as pixar, Lucasfilm and Marvel.
Yet, Disney faces a number of problems. One of the main problems is ESPN the sport network that accounts a sum of Disney’s profit. ESPN is not doing great and the investors are worried where this is going to lead.
Netflix is one of the most well known video streaming networks. People from all around the world use the app to watch their favorite shows and movies.It has had huge success with 80million subscribers. Disney investing in Netflix makes sense, this will secure Disney’s future. The companies have already worked together in number of ways Netflix has featured many Disney movies and tv shows. The profit Disney will make will only help the company meet it’s needs considering the amount it needs to spend to create new content. It won’t be surprising if Disney does decide to go a head with the deal.