Disney has already been in the headlines with regards to potential acquisitions of other companies in recent weeks after it emerged that the company was considering a bid for Twitter. The news came after Google, Salesforce and Verizon were reported to be interested in striking a deal to snap up the social platform.
Now, Disney is reported to have its sights set upon Netflix in order to bolster its media and entertainment business, which includes the popular ESPN.
Netflix investors have been concerned about the decreased rate of growth in the US and the fact that the company"s volatile stock was trading well below the $133.27 per share high achieved over the last 12 months. However, after news broke of Disney"s potential interest in the video streaming service, Netflix stock climbed over $100 to $102.63, representing a gain of 4.1%.
However, the purchase of Netflix could end up being a double-edged sword. While a deal would enable Disney to serve live ESPN content direct to customers as an "over the top" product, it could also discourage competing studios from making their content available on Netflix.
Time will tell as to which acquisitions will proceed, if any, however, Disney has had a successful record of big name acquisitions, which have included Pixar, Lucasfilm, and Marvel Entertainment.
Source: MarketWatch, Variety