Netflix’s stock (NFLX) has seen a drop of nearly 5% following reports that rival Paramount Skydance (PSKY) is intending to make a revenue bid for Warner Bros Discovery (WBD).
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While no deals have been finalized, the potential merger of Paramount Skydance with Warner Bros. Discovery presents a significant challenge to Netflix in the streaming realm. Paramount Skydance already operates Paramount+ Streaming Service, while Warner Bros. Discovery is behind HBO Max.
This union between Paramount and Warner Bros. also controls CBS TV networks and a variety of specialized channels including Nickelodeon and CNN. Together, they hold a rich portfolio of film and television franchises like Harry Potter, The Lord of the Rings, as well as DC comic heroes such as Batman and Wonder Woman.
Live sports
One of the most critical areas where Paramount Skydance and Warner Bros Discovery can compete with Netflix is live sports. They have an extensive array of broadcast sports rights, covering NFL football and Major League Baseball games.
Additionally, they hold rights to college football and basketball. Live sports have become a crucial focus for streaming services aiming to draw in subscribers. Netflix has been branching out into this area as well, with live sports spanning from NFL games to wrestling matches and even competitive eating contests.
Experts point out that the merger between Paramount Skydance and Warner Bros Discovery could be a formidable challenge for Netflix, particularly in the live sports category.
Do you buy NFLX stock?
Currently, Netflix stock carries a consensus moderate buy rating from 36 Wall Street analysts. This assessment is based on 24 buys, 11 holds, and a single sell recommendation over the last three months. The average price target for NFLX is $1,394.50, suggesting a potential upside of 16.85% from current levels.
Read more NFLX Stock Analyst Ratings
