Netflix Enters Exclusive Talks to Acquire Warner Bros Discovery, Emerges as Top Bidder
Written by Emily J. Thompson, Senior Investment Analyst
Source: Newsfilter
Updated: 48 minutes ago0mins
- Acquisition Talks Initiated: Netflix is in exclusive negotiations to acquire Warner Bros Discovery, emerging as the top bidder, a move that could reshape the media landscape and enhance its market competitiveness.
- Significant Market Impact: If successful, this acquisition will further solidify Netflix's position in the streaming and content production sectors, enhancing its ability to compete against other streaming platforms, particularly in content richness and user attraction.
- Industry Consolidation Trend: Netflix's acquisition intentions reflect an acceleration in media industry consolidation, potentially prompting other companies to follow suit, thereby driving further M&A activity and altering the competitive landscape.
- Strategic Positioning Optimization: By acquiring Warner Bros, Netflix will be able to integrate more premium content resources, improving user experience and attracting more subscribers, which will drive long-term revenue growth.
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Analyst Views on NFLX
Wall Street analysts forecast NFLX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NFLX is 139.13 USD with a low forecast of 95.00 USD and a high forecast of 160.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
36 Analyst Rating
28 Buy
7 Hold
1 Sell
Strong Buy
Current: 103.960
Low
95.00
Averages
139.13
High
160.00
Current: 103.960
Low
95.00
Averages
139.13
High
160.00
Rosenblatt
Rosenblatt
Buy
maintain
$153 -> $152
2025-11-28
Reason
Rosenblatt
Rosenblatt
Price Target
$153 -> $152
2025-11-28
maintain
Buy
Reason
Rosenblatt lowered the firm's price target on Netflix (NFLX) to $152 from $153 and keeps a Buy rating on the shares after making maintenance updates to its model, including updating for the 10-1 share split completed post-close on November 14. The firm is skeptical that Netflix emerges as the winning bidder for Warner Bros. Discovery (WBD), so a potential acquisition does not currently factor into its thesis, though it has added such a possibility to its risks, the analyst tells investors.
JPMorgan
Neutral
maintain
$124
2025-11-18
Reason
JPMorgan
Price Target
$124
2025-11-18
maintain
Neutral
Reason
JPMorgan lowered the firm's price target on Netflix to $124 from $127.50 and keeps a Neutral rating on the shares. The firm attributes the 11% selloff since the Q3 earnings report to a continued overhang from media acquisitions headlines, concerns around engagement and increasing competition, and market rotation from select high multiple names. JPMorgan believes Netflix could provide an initial 2026 revenue growth outlook of 11%-13%, with continued operating margin expansion, free cash flow ramp, and greater share buybacks, resulting in 20% GAAP earnings growth. The firm adjusted the company's model to reflect the recent 10-1 share split.
Barclays
Kannan Venkateshwar
Overweight
downgrade
$110
2025-11-18
Reason
Barclays
Kannan Venkateshwar
Price Target
$110
2025-11-18
downgrade
Overweight
Reason
Barclays analyst Kannan Venkateshwar adjusted the firm's price target on Netflix to $110 from $1,100 and keeps an Overweight rating on the shares. The firm updated its model to account for the company's stock split.
Bernstein
Underperform
maintain
$11 -> $12
2025-11-12
Reason
Bernstein
Price Target
$11 -> $12
2025-11-12
maintain
Underperform
Reason
Bernstein raised the firm's price target on Paramount Skydance (PSKY) to $12 from $11 and keeps an Underperform rating on the shares. Paramount Skydance is arguably the most interesting company in Media today, the firm says, adding that it is more than a flavor-of-the-month narrative. On an as-is basis, Bernstein believes the stock remains overvalued, but that's also what many thought of Netflix (NFLX) a decade ago. The company has shown it's here to play the long game, laying the groundwork for recovery and sustained growth, the firm adds.
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About NFLX
Netflix, Inc. is a provider of entertainment services. The Company acquires, licenses and produces content, including original programming. It provides paid memberships in over 190 countries offering television (TV) series, films and games across a variety of genres and languages. It allows members to play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. The Company offers members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, TV set-top boxes and mobile devices. It is engaged in scaling its streaming service, such as introducing games and advertising on its service, as well as offering live programming. It is developing technology and utilizing third-party cloud computing, technology and other services. The Company is also engaged in scaling its own studio operations to produce original content.
About the author
Preview
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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