Netflix reportedly pursued Lionsgate acquisition after its lower bid lost Roku deal to Fox’s $160 per share offer and shelved an earlier Warner Bros. Discovery asset bid. NFLX shares dipped nearly 3% as investors question the streaming giant’s shift to growth-by-acquisition, extending a 16% year-to-date and 36% 12-month decline.
Netflix has pivoted from organic subscriber growth to pursuing large-scale acquisitions after its lower offer for Roku lost to Fox’s $160-per-share bid and an earlier bid for Warner Bros. Discovery assets fell short to Paramount Skydance.
Netflix explored Lionsgate as a potential acquisition target but has not submitted a formal offer, a move that would face regulatory review given market concentration concerns in streaming and content production.
NFLX shares declined nearly 3% on the M&A developments, extending a 16% year-to-date fall and a 36% slump over the past 12 months as investors weigh deal costs, antitrust risks and the effectiveness of an acquisition-driven growth strategy.
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