Sargon Portfolio Manager Brett Icahn has affirmed that Netflix, Inc. (NASDAQ:NFLX) would be better-off operating as a standalone company instead of merging with the likes of Amazon.com, Inc. (NASDAQ:AMZN) or Google Inc. (NASDAQ:GOOGL). During an interview on Fox Business, Icahn reiterated they would only push for a merger with another company should the premium on offer be exciting and enticing.
A number of people have always believed that a merger between Netflix and another online company would allow it to gain more traction in the video streaming business in terms of coverage.
“We’ve said from the start when we bought Netflix, Inc. (NASDAQ:NFLX) that we think it is incredibly a strategic asset. The asset itself is extremely strategic, and I can see there being interest from a lot of companies who would want to buy it,” said Mr. Icahn.
Icahn also reiterated that they would not at the moment push for any merger as a move of the sort would make Netflix an acquisition target from a number of companies. Icahn believes that Netflix, Inc. (NASDAQ:NFLX) business on a standalone remains extremely strong unchallenged from other players in the space.
A push for sale in this case will mostly depend on the premium that Amazon and the likes would be willing to pay as one of the ways of first attracting the attention of majority shareholders
“It depends obviously on the premium they would be willing to pay. We believe that the current business model with the current management and their current growth strategy is a standalone basis. Something that is a once in a lifetime type of opportunity for them to continue grow internationally. Gain share and basically grow subs to a point where on a standalone basis it is worth a lot more from where it is,” said Mr. Icahn
David Schechter, on the other hand, argues that Netflix, Inc. (NASDAQ:NFLX) should not focus on making money on the short-term but rather invest on international markets where growth-opportunities remain strong and sustainable.
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