Netflix Rises As Strong Luke Cage Debut Adds Fuel To Disney Rumors
Shares of Netflix (NFLX) are on the rise after a strong debut for "Luke Cage," their latest Marvel TV series, added fuel to recent takeover rumors that Disney (DIS) could be interested in the streaming service operator.
LUKE CAGE DEBUT: Netflix was down for two hours over the weekend and the culprit may have been their latest TV show from Disney's Marvel unit, "Luke Cage," which debuted on September 30. According to Ubergizmo, after the company uploaded the entire season all on Friday, fans have speculated that the rush to watch the series may have been behind the streaming service's downtime. Luke Cage's Executive Producer Cheo Coker appeared to have drawn a similar conclusion by saying on Twitter: "Did y'all break NETFLIX? #LukeCage."
TAKEOVER RUMORS: The launch of the new series is not the only reason Netflix is making headlines. According to Bloomberg, Drexel Hamilton analyst Tony Wible believes investors could be speculating on recent takeover rumors linking Netflix and Disney. The analyst recommended investors buy Netflix's shares ahead of earnings but discounted the likelihood of a takeover deal, an opinion shares by Pacific Crest Securities' Andy Hargreaves, the publication added. "You've seen some takeover chatter popping up, but Netflix hasn't shown it wants to be acquired," Wible said.
DISNEY CONSIDERING A BID FOR TWITTER: Last month, media reports emerged saying that Disney was working with a financial adviser to explore a potential offer for Twitter (TWTR). The media giant is said to be one of several suitors for the microblog service operator. Media reports have also linked Microsoft (MSFT), Salesforce (CRM), and Alphabet's (GOOG; GOOGL) Google to a possible acquisition of Twitter.
PRICE ACTION: In afternoon trading, shares of Netflix have gained over 4% to $102.85, while Disney's stock is fractionally down to $92.61 per share.
Disclosure: None.