Rumors floating around for a buyer of a Netflix for sale has been going on for months. Initially, it was suggested that Apple would be making the purchase after failing to succeed with their TV service. Now, more rumors are surfacing of Disney paying serious interest on the streaming giant — set for a big buy-out later this year. Another hard-to-believe rumor points to other companies also joining the bid for the North-American based giant.
Netflix for Sale Rumor Mill
So are all these rumors with Netflix true? We think they’re believable – to certain degree. It’s normal for companies to go on sale, if the price tag happens to be just right. Netflix, a publicly traded company, is constantly facing the risk of buyers taking up a bulk of the company. Nevertheless, Netflix has gone way beyond that.
The sale of Netflix at this point in time happens for a number of reasons. The streaming service giant have hit their peak number of subscribers within the U.S. this year. They’re also at a tipping point in their business where cash is badly needed to help scale their expansion in their rapidly growing catalog.
Another reason for a possible sale may have something to do with their recent quarter loss. This led many to speculate Netflix set for a big sale any time now. Investors predict that selling the company could happen sometime this year given a recent 4% stock increase in the previous week. This could be attributed to a rumor that Netflix for sale may end up in the hands of Disney.
Sell or Expand?
What will this all mean? Nothing much really. Businesses are constantly selling (if the price is just about right). Even if a sale is declared, it’ll take time to close. The question now is: is Netflix for sale or is the company willing to sell part of itself for cash required to push through their expansion?