New Girl A Feather in Netflix, Inc. (NFLX)’s Cap

Worries about locking up content rights, are already undermining the bidding process for Hulu as it is. According to AllThingsD, Yahoo’s bid came in far lower then the $1 billion desired by Hulu owners.

Playing Netflix?

While there’s no doubt in my mind that Netflix paid for too much for the content rights to New Girl alone, I believe that CEO Reed Hastings might view this as a chess move to weaken the competition.

Nevertheless, I would short Netflix, Inc. (NASDAQ:NFLX). It is my belief that the company pays impossibly high prices for content, its share price has run up substantially this year, and the company will be facing tremendous competitive pressures, not only from Amazon, but also a massive push forward by Google Inc (NASDAQ:GOOG), for eyeballs. Nevertheless, I do like the high level but very expensive corporate chess moves being made.

The article New Girl A Feather in Netflix’s Cap originally appeared on Fool.com and is written by Margie Nemcick-Cruz.

Margie Nemcick-Cruz is short Netflix. The Motley Fool recommends Netflix and Walt Disney (NYSE:DIS). The Motley Fool owns shares of Netflix and Walt Disney. Margie is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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