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Why Netflix Inc. (NFLX) Isn’t A Takeover Target?

Netflix, Inc. (NASDAQ:NFLX) is not having a good time. Lackluster performance in the third quarter despite beating market estimates, failing to meet its own subscriber targets, back to back announcements from competitors Time Warner Inc (NYSE:TWX)’s HBO and CBS Corporation (NYSE:CBS) planning to start their own internet streaming service and plunging stock values added to its share of worries over the past week. And now, with American investor and owner of the Dallas Mavericks, Mark Cuban, suggesting that the time is ripe for someone to take over the internet television giant, Netflix is officially going through a lousy phase.

Netflix, Inc. (NASDAQ:NFLX)

Cuban’s tweet claiming that Netflix, Inc. (NASDAQ:NFLX) is a lucrative takeover target, however, does not reflect public opinion. Analysts have pointed out that the Netflix price fall is not significant enough to attract any buyers. Albert Fried & Co. analyst Richard Tullo was also of the opinion that Netflix has to go a lot lower than its current $357 before someone considers buying it.

Netflix, Inc. (NASDAQ:NFLX) did see a fall in its value a couple of years ago when its stock prices tumbled from $295 to a little under $70. Compare this with the current situation. Though the stock has plummeted from where it was a week ago, the current price is still five times than what it was back in 2011. If it was not a target of a buyout then why now, argue analysts. Suffice to say that Wall Street stands divided in this matter.

The other faction including Cuban claim that Netflix, Inc. (NASDAQ:NFLX) can do the rise from its ashes act all over again and this is the strong point that would make potential buyers give Netflix a chance. With over 37 million Netflix subscribers in the United States and another 26 million in the rest of the world consuming its services, analysts believe that there is still hope left for Netflix.

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