Netflix shares closed up more than 4% Monday amid rumors that the Walt Disney Co. was eyeing an acquisition of the OTT video giant.
A deal for Netflix would give Disney more original content, more control of its distribution via Netflix, and more infrastructure to deliver its content to a massive array of connected devices.
Disney, which has also been rumored to be eyeing Twitter, has been bulking up on technologies and systems that underpin OTT distribution. In August, Disney announced it was acquiring 33% of BAMTech, the tech services and video streaming operation launched by Major League Baseball, for $1 billion, plus an option to buy a controlling stake in coming years.
Disney and Netflix have been asked to comment on the rumor. Netflix, scheduled to post Q3 earnings on Oct. 17, told MarketWatch that the company does not comment on rumors.
The smarter way to stay on top of broadcasting and cable industry. Sign up below.
Thank you for signing up to Broadcasting & Cable. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.