The rumors of a buyer for Netflix have been around for some time now. First it was suggested that Apple would buy it to replace their failed TV service. Now new rumors have started that Disney is working on buying Netflix sometime this year. There have even been a host of less creditable rumors that other companies are looking at buying the streaming giant.
So are these rumors of a Netflix sale true? We believe they are—to a point. All companies are for sale if the price is right, and Netflix—being a publicly traded company—always faces the risk of a buyer coming in and buying a majority control of the company. However, the Netflix sale details go even farther than that.
The timing of a Netflix sale right now is likely for many reasons. Netflix seems to have hit a peak in subscribers who live in the United States recently. They are also likely at a point where money is needed to reach their goals for both expansion and additions to their streaming catalog.
Add in the fact that Netflix is once again facing a down quarter. All of this leads many to believe Netflix is perfect for a sale. Investors seem confident that a sale is close as stocks shot up 4% last week based on rumors of a Netflix sale to Disney.
So what does this mean for cord cutters? Nothing in the short run. Companies are always for sale if the price is right. Even if a sale does happen it will likely take some time to close. The only question is will Netflix sell or just sell part of the company in exchange for cash that is needed to continue their expansion plans?
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