After Losing Almost $9 Billion in Market Value, Netflix Is Looking Like a Tempting Takeover Target

Sep 26, 2011  •  Post A Comment

After a series of marketing and branding missteps, Netflix has lost almost $9 billion in market value, making it a more reasonably priced takeover target for companies such as Amazon or Google, reports Bloomberg.

Netflix is now 57% cheaper than it was in July, before it announced an unpopular price increase and the rebranding of its DVD-by-mail service as Qwikster, the story notes. Both moves alienated customers, prompting some investors to flee, the article adds.

Nevertheless, Netflix has more paying customers for movies and TV shows than Amazon, Google and Sony Corp. Amazon could in theory pay a 50% premium for Netflix’s streaming service and still buy the entire company for 26% less than just two weeks ago, the story points out.

Your Comment

Email (will not be published)