Netflix Stock Drops as Roku Deal Moves Forward Without Its Bid

TLDR

• Netflix stock fell 2.95% on Wednesday as acquisition rumors drove volatility around NFLX.
• Lionsgate shares jumped nearly 14% after reports linked Netflix to a possible takeover.
• Netflix denied interest in Lionsgate, saying it was “not interested” and had no plans for a deal.
• Reports said Netflix never submitted a formal indication of interest for Lionsgate.
• Netflix also denied submitting a Roku bid, while Fox moved ahead with a confirmed $22 billion Roku transaction.

Netflix (NASDAQ: NFLX) stock fell on Wednesday as traders reacted to mixed reports about possible media acquisitions. NFLX lost 2.95%, while Lionsgate shares jumped nearly 14% after takeover chatter. However, Netflix denied interest in Lionsgate and said it did not plan a deal.

Netflix, Inc., NFLX

Netflix Stock Falls After Lionsgate Report Sparks Brief Rally

Netflix faced renewed market pressure after reports linked the company to a Lionsgate acquisition. The report pushed Lionsgate stock higher, but NFLX moved lower during Wednesday trading.

A Netflix spokesperson said the company was “not interested” in buying Lionsgate. The company also said it had no plan to pursue the studio.

Reports also said Netflix never filed an indication of interest for Lionsgate. That detail matters because such a step often starts serious deal talks.

Lionsgate remains attractive to some buyers because it owns John Wick and The Hunger Games. The company has a market value near $4.8 billion.

The stock has climbed about 77% since January as traders priced in takeover hopes. However, Netflix rejected the report before any formal offer became public.

NFLX still drew attention because traders linked the company to several media assets. Yet the Lionsgate story showed how early reports can move prices before companies respond.

NFLX Denies Roku Bid as Fox Completes $22 Billion Deal

The chatter also included Roku, which entered a separate transaction. Reports said Netflix reviewed a possible Roku deal before stepping back.

Netflix said it never submitted a bid for Roku. Therefore, the Roku deal moved forward without an offer from NFLX.

Fox completed a $22 billion transaction for Roku on Tuesday. That deal named a buyer while Netflix stayed outside the process.

The Roku update mattered because it separated confirmed deal activity from market talk. It also placed Fox ahead of Netflix in the race for that asset.

Netflix has evaluated media assets this year. Earlier, it offered $83 billion for Warner Bros. Discovery streaming and studio assets.

However, Netflix later refused to match a rival $110 billion proposal. That decision showed the company still sets limits on major deals.

Netflix stock has fallen about 14% this year and traded near $78. Traders have tracked support near $75 and the 200-day moving average near $70.

NFLX ended Wednesday under pressure after the company denied some reports. The most recent confirmed deal remains Fox’s $22 billion Roku transaction.

The post Netflix Stock Drops as Roku Deal Moves Forward Without Its Bid appeared first on Blockonomi.