UK Politicians Urge Review of Netflix's $83 Billion Acquisition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Newsfilter
- Acquisition Review Call: A group of over a dozen UK politicians and former policymakers has urged the Competition and Markets Authority to conduct a full review of Netflix's $83 billion bid for Warner Bros Discovery, expressing concerns that the deal will solidify Netflix's dominance in the streaming market.
- Competition Concerns: The letter highlights that the acquisition could lead to a substantial lessening of competition, which could harm consumers, reflecting deep worries about rising market concentration that may trigger stricter regulatory actions.
- Political Opposition: Some members of the U.S. Congress have labeled the acquisition an antitrust 'nightmare', indicating the political and legal challenges faced by multinational acquisitions, which could impact Netflix's global expansion strategy.
- EU Scrutiny Dynamics: Reports suggest that EU antitrust regulators are also expected to review Netflix's and Paramount Skydance's competing bids simultaneously, indicating the complex regulatory environment the deal faces internationally, potentially delaying the acquisition process.
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 129.47 USD with a low forecast of 92.00 USD and a high forecast of 152.50 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.
38 Analyst Rating
27 Buy
9 Hold
2 Sell
Moderate Buy
Current: 86.120
Low
92.00
Averages
129.47
High
152.50
Current: 86.120
Low
92.00
Averages
129.47
High
152.50
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
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.
