Wall Street rumor: Is Disney interested in bringing Netflix into the fold?

netflix-disney
Shares in Netflix stock have been climbing of late in response to rumors that Disney may be interested in purchasing the streaming video giant. Netflix and the House of Mouse have had a cozy relationship for some time, largely centering around the streaming company’s use of various Marvel Comics franchises in its hunt for binge-watching domination.

This is not the first rumored acquisition by Disney in recent weeks, with simultaneous Wall Street scuttlebutt that the company may also be interested in a buyout of Twitter.

The Netflix acquisition rumor was recently corroborated by an analyst at Robert W. Baird & Co named William Power, who wrote, “Regarding recent M&A rumors, whether Disney, Apple, or someone else, Netflix could become a target.”

A move to purchase shares in a heavy-hitting streaming video company would not be a first for the Walt Disney Corporation; Disney currently owns 30 percent of Hulu and recently spent $1 billion to buy a third of Major League Baseball’s Advanced Media Tech division.

With such a big stake in the streaming marketplace, whether or not a deal with Netflix would fly through regulatory hurdles remains to be seen. That, and a Disney-owned-Netflix would have even more trouble than the company presently does securing titles from rival movie studios.

Disney executives may also be reticent to purchase the company based on the fact that it trades so far beyond earnings. Netflix’s price-to-earnings ratio hovers around 320, which would mean a major hit to Disney’s balance sheets should a buyout occur.

There are still reasons to believe this deal could happen. With the streaming giant creating more and more original content, its reliance on outside material is steadily declining and the speedy addition of big-money Disney franchises like Star Wars could not possibly hurt the service. Plus, Disney has always been at the forefront of streaming video and a move further into that field would not seem off-base for the company or its investors.

Mobile

Netflix is testing a cheap mobile-only subscription tier in some markets

Netflix is trying to reach potential subscribers in emerging markets. To that end, the company has begun rolling out a cheaper, mobile-only subscription tier, which comes at around $4 per month -- half the price of the Basic subscription…
Home Theater

The best movies on Netflix in November, from 'Buster Scruggs’ to ‘Dracula’

Save yourself from hours wasted scrolling through Netflix's massive library by checking out our picks for the streamer's best movies available right now, whether you're into explosive action, witty humor, or anything else.
Movies & TV

The best shows on Netflix, from 'The Haunting of Hill House’ to ‘The Good Place’

Looking for a new show to binge? Lucky for you, we've curated a list of the best shows on Netflix, whether you're a fan of outlandish anime, dramatic period pieces, or shows that leave you questioning what lies beyond.
Computing

Our favorite Windows apps will help you get the most out of your new PC

Not sure what apps you should be downloading for your newfangled Windows device? Here are the best Windows apps, whether you need something to speed up your machine or access your Netflix queue. Check out our categories and favorite picks.
Outdoors

GM is getting into ebikes, and it wants you to help name them

General Motors has just unveiled its first-ever electric bikes and has launched a $10,000 public contest to help name them. Tip: It's probably not worth suggesting "Bikey McBikeface."
Smart Home

No, Amazon Day isn’t yet another shopping event, but you may find it useful

Don't worry, Amazon Day isn't yet another online shopping extravaganza aimed at wrecking your monthly budget. Instead, it's a delivery option being tested for Prime Members that could actually be pretty useful.
Outdoors

Lime splashes $3 million on a campaign to encourage safer electric scooter rides

Keen to boost its image and keep local communities onside, scootersharing outfit Lime is spending $3 million on a campaign to teach its users how to ride more safely and responsibly.
Social Media

Facebook opens pop-up stores at Macy’s, but they’re not selling the Portal

Facebook has opened pop-up stores at multiple Macy's, though they're not selling Facebook's new Portal device. Instead, they're showcasing small businesses and brands that are already popular on Facebook and Instagram.
Smart Home

Amazon sends out physical toy catalog for kids of all ages this holiday season

Amazon confirmed it is shipping a printed holiday toy catalog, "A Holiday of Play," to millions of customers starting in November. The 68-page catalog has QR codes for many toys. A downloadable version links to each product on Amazon.
Mobile

Google confirms it will add Android support for foldable displays

It's already clear a few smartphones of 2019 will be foldable, and Google is embracing the trend. The company announced its adding Android support for foldable devices, which will allow apps to work seamlessly with the new form factor.
Mobile

Rugged Cat phones look to crack U.S. market through new deal with Sprint

The biggest name in rugged smartphones is launching a new device in the U.S. with Sprint. The Cat S48c is a tough, but affordable phone that can handle drops, water, dust, and extreme temperatures.
Cars

Bosch, Daimler team up to deploy autonomous Mercedes-Benz S-Classes in San Jose

In 1986, when Bosch and Daimler joined an autonomous car research project, the technology seemed overly futuristic. Now, the partners are aiming to make a production self-driving car by the early 2020s.
Home Theater

Comcast wants you to take control of your smart home through your TV

Comcast is looking to take on Google and Amazon as the center of your smart home. The company is reportedly testing a program that would allow broadband-only customers to turn their TVs into smart home hubs.
Business

Bags with brains: Smart luggage and gadgets are making travel smoother

The bag you use to tote your stuff can affect the experience of any trip. In response, suitcases are wising up, and there are now options for smart luggage with scales, tracking, and more. Here are our favorite pieces.