"Shares of video streaming platform Netflix ( NASDAQ:NFLX) now find themselves down close to 30% from their all-time highs, thanks in part to a tough third-quarter result and reports that the firm is in the running to acquire Warner Bros. Discovery ( NASDAQ:WBD). Undoubtedly, it feels like there's about to be a bitter bidding war for the right to acquire Warner Bros as Paramount looks to offer a richer hostile offer."
"Of course, live sports, a move into gaming, embracing AI, and continuing to launch high-quality content that resonates with a broad audience have been a winning formula for Netflix. And while the winning formula has kept Netflix on top, there's no guarantee that the pace of growth can continue moving forward, especially as the industry matures and consumers get a tad pickier about their streaming subscriptions."
Netflix shares have dropped about 30% from all-time highs after a weak third-quarter result and reports that Netflix is among bidders for Warner Bros. Discovery. The potential acquisition could trigger a costly bidding war, with Paramount reportedly preparing a hostile rival offer. Investor enthusiasm appears muted because the deal would likely carry a hefty price. Netflix growth has been driven by live sports, gaming expansion, AI adoption, and a steady stream of high-quality content. The company has also tightened password sharing, introduced an ad-supported tier, and raised prices, but maintaining prior growth momentum may become more difficult.
Read at 24/7 Wall St.
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