The annual Allen & Co. Media and Technology Conference in Sun Valley, Idaho, has been a hotbed for big media deals in the past. And with Netflix executives in attendance at this year's "summer camp for billionaires," some Netflix stock investors are wondering if the beleaguered streaming video firm could be part of the next major merger to spring from the get-together.
With Netflix stock down 69.5% this year, some pundits see the subscription video-on-demand leader as a takeover target.
An independent Netflix "is gone," one financier told Deadline. The company is "not a growth story anymore."
Other media companies that could be in play at the conference include Paramount Global and Warner Bros. Discovery, according to media reports. The Sun Valley conference officially began Wednesday and runs through Saturday.
Media Executives Descend On Sun Valley
Netflix co-Chief Executive Officers Reed Hastings and Ted Sarandos were expected to attend. Other top executives are coming from Alphabet, Amazon, Apple, Comcast, Fox, Meta Platforms, Twitter, Walt Disney and more.
TVAnswerman.com publisher Phillip Swann predicted in December that Netflix would merge with a rival to form a stronger company that "can survive a long-term streaming war." He said Disney and Comcast make the most sense as merger partners.
Swann made his prediction before Netflix stumbled badly with two disappointing quarterly reports this year. Netflix stock gapped down after both reports.
On April 19, Netflix reported a surprise loss of subscribers in the first quarter. The Los Gatos, Calif.-based company lost 200,000 subscribers in the March quarter. Analysts and the company's own outlook predicted 2.5 million new subscribers in the period. The streaming video leader ended the first quarter with 221.6 million subscribers worldwide.
Worse yet, Netflix forecast losing 2 million total subscribers in the second quarter. The company plans to report second-quarter results on July 19.
Netflix Stock Price Target Cut
On Tuesday, Piper Sandler analyst Thomas Champion reiterated his neutral rating on Netflix stock. He also lowered his price target to 210 from 293.
On the stock market today, Netflix stock fell 1% to close at 184.06.
The fourth season of Netflix original series "Stranger Things" has been a big hit for the video streamer, but the company has multiple challenges ahead, Champion said in a note to clients.
Those challenges include adding a lower-cost advertising-subsidized service level. Netflix also faces heightened competition in the online video market, Champion said.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
