Netflix Is Reportedly Eyeing Lionsgate After Losing Roku Bid To Fox – A Look At Why The Fox Deal Might Have Appealed To Roku Board

According to a report by Semafor, citing sources, Netflix is pursuing a large deal and is among several media companies interested in buying Lionsgate Studios.

• The bid for a large company points to a shift from Netflix’s original strategy of building growth to buying growth.
• Roku’s board acted in the best interests of its shareholders as Netflix’s offer was lower than the $160-per-share bid Fox made, the report said.
• Earlier this year, Netflix lost out to Paramount Skydance in the bidding for the assets of Warner Bros. Discovery.

Shares of Netflix (NFLX) drew significant investor buzz on Tuesday after a media report suggested that the streaming giant has set its eyes on film studio Lionsgate (LION) as a potential acquisition target.

At the time of writing, NFLX stock was down nearly 3% while LION stock was up roughly 8%.

Is Netflix Looking To Buy Lionsgate?

According to a report by Semafor, citing sources, Netflix is trying to pursue a large deal and is among several media companies interested in buying Lionsgate Studios. However, it has not submitted a formal indication of interest.

The report also said Netflix lost the bid to buy TV streaming company Roku (ROKU) to Fox (FOX, FOXA) in a fiercely competitive process, pointing to a shift from the company’s original strategy of building growth to buying growth.

Sources also told Semafor that a Netflix-Roku combination would have faced a tougher antitrust review and that Roku’s board acted in the best interests of its shareholders, as Netflix’s offer was lower than the $160-per-share bid from Fox.

Recap: Paramount-Netflix Bidding War For Warner Bros.

Earlier this year, Netflix lost out to Paramount Skydance (PSKY) for the assets of Warner Bros. Discovery (WBD) in a months-long bidding war after the David Ellison-led media company relentlessly pursued the HBO parent and submitted multiple sweetened offers.

While both companies would have faced thorough antitrust scrutiny, it is widely believed that Netflix’s deal for Warner’s streaming and studio business fell through due to the Ellison family’s strong ties to the Trump administration.

What Do Retail Traders Think About NFLX?

On Stocktwits, retail sentiment toward NFLX remained in ‘bearish’ territory over the last 24 hours, amid ‘high’ message volumes.

One user on the platform said they were not disappointed that the company lost the Roku bid, indicating that the company is being prudent and does not want to overpay.

View this Stocktwits post

NFLX stock has lost 16% so far this year and has fallen 36% over the past 12 months, underperforming the S&P 500.

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