12-04-2012, 04:35 PM
Netflix just a made a deal with Disney to get exclusive first run rights for ALL Disney movies (including Pixar, Marvel, and presumably the new Star Wars films). That's pretty big - stock is up 14%.
The down side is that this doesn't come into effect until 2016 (!), although they get some of the Disney back catalog right away. But I still think this makes Netflix a buy - it's been so long since they had a major deal to announce. In fact we were just about to cancel or subscription, but now I'm going to stick with them (kids love Disney flicks...)
I was tempted to sell my Netflix options at the end of the day, but I'm going to hold on and see where this goes. Hopefully the shorts haven't finished covering. The risk is we later find out that Netflix paid some ridiculous amount of money for these rights (and they outbid HBO, Starz, and so on, so it's not going to be chump change...), and either won't have enough money to stay afloat all that time, or will have to do a secondary share offering to raise cash (which now I think about it seems quite likely...)
The down side is that this doesn't come into effect until 2016 (!), although they get some of the Disney back catalog right away. But I still think this makes Netflix a buy - it's been so long since they had a major deal to announce. In fact we were just about to cancel or subscription, but now I'm going to stick with them (kids love Disney flicks...)
I was tempted to sell my Netflix options at the end of the day, but I'm going to hold on and see where this goes. Hopefully the shorts haven't finished covering. The risk is we later find out that Netflix paid some ridiculous amount of money for these rights (and they outbid HBO, Starz, and so on, so it's not going to be chump change...), and either won't have enough money to stay afloat all that time, or will have to do a secondary share offering to raise cash (which now I think about it seems quite likely...)
Ex SWG, L2, CoH, Wow, and War
Currently PvPing in the stock market
Currently PvPing in the stock market