• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers

3

Uber CEO says rideshare 'freed up' his son from having to get a driver’s license—and he's one of many Gen Zers who aren’t willing to drive

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers

3

Uber CEO says rideshare 'freed up' his son from having to get a driver’s license—and he's one of many Gen Zers who aren’t willing to drive
FinanceNetflix

The Case For Why Disney Should Buy Netflix

Lucinda Shen
By
Lucinda Shen
Lucinda Shen
Down Arrow Button Icon
Lucinda Shen
By
Lucinda Shen
Lucinda Shen
Down Arrow Button Icon
April 8, 2016, 7:05 PM ET
ABC's Coverage Of The D23 Expo 2015
D23 EXPO 2015 - D23 EXPO, the ultimate Disney fan event, brings together all the past, present and future of Disney entertainment under one roof. Taking place August 14-16, this year marks the fourth D23 EXPO at the Anaheim Convention Center and promises to be the biggest and most spectacular yet. (Photo by ABC/Image Group LA via Getty Images) MINNIE MOUSE, MICKEY MOUSEPhoto by ABC/Image Group LA via Getty Images

In the past year, Walt Disney (DIS), a company that sells itself on magic and nostalgia, has struggled with some very real problems.

The entertainment conglomerate has grappled with falling ESPN viewership—the largest division within its cable networks—as consumers turn away from bundled channels and flee to the world of on-demand streaming. The company lost 7 million viewers by the end of fiscal year 2015, worrying investors and dragging its stock down. The bad news continued flowing when, earlier this week, heir apparent and Chief Operating Officer, Thomas Staggs left the company.

So what is to be done?

Some have suggested that Disney strengthen their partnerships with Amazon or Dish. CEO Bob Iger has also hinted that ESPN might create a stronger direct to consumer platform—though none of those plans have fully materialized.

But according to one investment firm, BTIG, there is another fix-all answer: the house of mouse should buy Netflix.

In a Friday note, BTIG analyst Richard Greenfield noted that Netflix and Disney already have an ongoing, symbiotic relationship. BTIG has a “sell” rating on Disney’s stock.

“Netflix is already a great friend of Disney, in fact, Iger has repeatedly acknowledged how they are in part responsible for Netflix’s success. Disney continues to sell more and more content to Netflix spanning movies and television series, while at the same time struggling to get their own direct-to-consumer content business off-the-ground in the UK,” Greenfield wrote. “Buying Netflix is an awfully expensive acquire, but it could be Disney’s only hope.”

For Netflix, the exchange means the younger company also would breach the “live” TV space and gain a well-established film studio. And for Disney, the company would be snapping up a company that already understands and has the infrastructure to grow its direct-to-consumer streaming model.

 

And guess what?

Netflix (NFLX) might also have the answer to the loss of Staggs: Netflix CEO Reed Hastings. A man who is “visionary,” said Greenfield. Meanwhile, Disney watchers have been wondering if anyone could replace their larger-than-life CEO, Iger. BTIG also noted that yes, Netflix is expensive, with a $45 billion market cap and enterprise value against Disney’s $157 billion market cap and $167 billion enterprise value. With those valuations, it’s unlikely Netflix will sell below $100 billion.

Not all analysts on the street feel so bearish about Disney or its ability to turn ESPN around.

RBC’s Steven Cahall sent out a Friday note saying that they would keep an eye on ESPN’s subscription figures, giving Disney’s stock a “market perform rating.”

“We note that Disney has plenty of offsets, such as cash deployment and structurally higher Studio earnings,” he wrote. “We thus think ESPN sub loss is worth keeping an eye on, but should not be viewed as a structural impediment to owning the shares.”

 

About the Author
Lucinda Shen
By Lucinda Shen
See full bioRight Arrow Button Icon

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

Oil drops as U.S. says deal with Iran and Hormuz reopening is near
EnergyOil
Oil drops as U.S. says deal with Iran and Hormuz reopening is near
By Nicholas Lua and BloombergMay 24, 2026
3 hours ago
Russia’s economy is much worse than it seems, and ‘elites are increasingly alarmed’ as alternate GDP gauge shows huge contraction
EconomyRussia
Russia’s economy is much worse than it seems, and ‘elites are increasingly alarmed’ as alternate GDP gauge shows huge contraction
By Jason MaMay 24, 2026
4 hours ago
Alaska’s oil revival sparks a new energy rush Into the Arctic
EnergyOil
Alaska’s oil revival sparks a new energy rush Into the Arctic
By Jennifer A. Dlouhy and BloombergMay 24, 2026
5 hours ago
SpaceX stock is about to join this growing constellation of public companies building a space-based economy
Investingspace
SpaceX stock is about to join this growing constellation of public companies building a space-based economy
By Jason MaMay 24, 2026
6 hours ago
f
Energyfraud
Nonprofit fraud isn’t surging. Enforcement is
By Sarah Webber and The ConversationMay 24, 2026
11 hours ago
w
Personal FinanceWhite House
From Hobbes to the 14th amendment: the ancient and modern cases against Trump’s $1.8 billion fund
By Austin Sarat and The ConversationMay 24, 2026
11 hours ago

Most Popular

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
3 days ago
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
Success
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
By Emma BurleighMay 22, 2026
2 days ago
Uber CEO says rideshare 'freed up' his son from having to get a driver’s license—and he's one of many Gen Zers who aren’t willing to drive
Lifestyle
Uber CEO says rideshare 'freed up' his son from having to get a driver’s license—and he's one of many Gen Zers who aren’t willing to drive
By Sasha RogelbergMay 24, 2026
14 hours ago
Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50
Success
Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50
By Preston ForeMay 22, 2026
2 days ago
Inside the 'stealth wealth' playbook: How Silicon Valley's elite buy multimillion-dollar mansions without leaving a paper trail
Real Estate
Inside the 'stealth wealth' playbook: How Silicon Valley's elite buy multimillion-dollar mansions without leaving a paper trail
By Sydney LakeMay 24, 2026
15 hours ago
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Workplace Culture
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
By Preston ForeMay 19, 2026
5 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.