Netflix considers merging with other companies but does not confirm close plans

During its Q2 2021 results report presentation, Netflix has once again expressed itself on the possibility of acquiring other companies and joining the trend that is taking place in the market, such as Disney-Fox and others more recently announced, such as Amazon-MGM; Televisa-Univision and WarnerMedia-Discovery. Although Netflix reported that the option of a merger is open, the company does not forecast the option of an eventual merger yet.

‘While we are continually evaluating opportunities, we do not view any assets as ‘must-have’, and we have not yet found any large scale ones to be sufficiently compelling to act upon’, they reported from the company.

Likewise, and in relation to the new mergers recently announced in the market, Netflix reported that ‘the combination of Warner Media Group and Discovery and Amazon’s acquisition of MGM are examples of the ongoing industry consolidation as firms adapt to a world where streaming supplants linear TV’. In addition, when expressing itself on the impact of the merger on Netflix performance, the company reported that ‘the industry has consolidated materially over the years through mergers like Time Warner and AT&T; Viacom and CBS; and others; and we do not believe this consolidation has affected our growth much, if at all’.

During his keynote at the international media event Banff World Media Festival, recently held in Canada, Ted Sarandos, Co-CEO at Netflix, has also expressed himself on the possibility that the company acquires others in the future.   ‘Historically we have been more builders than buyers. We have built an impressive library of content from scratch in recent years. But we are certainly open to acquisitions’, Sarandos reported during the event. ‘If the asset is at the strategic core, media buying can be very successful. Generally, that is not known until a certain time’, the executive added.

Although Netflix has not developed a company acquisition policy recently, in August 2017 the company acquired the comic publisher Millarworld, with the aim of bringing life to its comics catalog through the development of films, series and children’s programs for Netflix subscribers globally. In turn, according to the latest quarterly results report of the company (Q2 2021), Netflix slowed its global subscribers base growth, and, in Latin America, it added 764 thousand between March 31st and June 30th, 2021.