Murdoch's News Corp to sell Foxtel to DAZN for $2.1 billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 23 2024
0mins
Should l Buy NFLX?
Source: Reuters
News Corp Sells Foxtel: News Corp has agreed to sell its Australian cable TV unit Foxtel to DAZN for A$3.4 billion, reducing its exposure to traditional broadcasting amid the rise of streaming services.
DAZN's Market Entry: The acquisition allows DAZN to enter the Australian market, potentially reshaping consumer expectations and pricing in sports broadcasting, while News Corp aims to focus on its core operations.
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Analyst Views on NFLX
Wall Street analysts forecast NFLX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NFLX is 129.47 USD with a low forecast of 92.00 USD and a high forecast of 152.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
38 Analyst Rating
27 Buy
9 Hold
2 Sell
Moderate Buy
Current: 82.200
Low
92.00
Averages
129.47
High
152.50
Current: 82.200
Low
92.00
Averages
129.47
High
152.50
About NFLX
Netflix, Inc. is a provider of entertainment services. The Company acquires, licenses and produces content, including original programming. It provides paid memberships in over 190 countries offering television (TV) series, films and games across a variety of genres and languages. It allows members to play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. The Company offers members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, TV set-top boxes and mobile devices. It is engaged in scaling its streaming service, such as introducing games and advertising on its service, as well as offering live programming. It is developing technology and utilizing third-party cloud computing, technology and other services. The Company is also engaged in scaling its own studio operations to produce original content.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Acquisition Challenges: The all-cash acquisition of Warner Bros. for $82.7 billion may strain Netflix's liquidity, leading to a pause in stock repurchases; however, this move could solidify its leadership in the streaming market, potentially attracting investor interest.
- Slowing Revenue Growth: Netflix anticipates revenue growth to slow to 12%-14% in 2026, down from 2025's rate, which could further dampen investor sentiment, especially given its liquidity of only $9 billion, necessitating stock dilution or increased debt to finance the acquisition.
- Advertising Revenue Potential: Despite these challenges, Netflix expects its advertising revenue to nearly double by 2026, indicating significant potential for diversifying income sources, which may attract more users and enhance market share in the competitive streaming landscape.
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- Strong Cash Flow: Alphabet generated $73 billion in trailing free cash flow over the past year, indicating robust financial health that provides ample funding for future technology investments and market expansion.
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- Potential ESPN Acquisition: Should the Warner Bros. deal collapse, Netflix may pivot to acquiring ESPN, which only contributed 19% of Disney's revenue in fiscal 2025 and has seen a 25% drop in operating profit, potentially allowing Netflix to reduce content costs significantly.
- Investment in Sports Content: Netflix is making substantial investments in live sports, including exclusive NFL Christmas games starting in 2024, indicating a strategic focus on sports content to attract more subscribers and enhance platform differentiation.
- Market Reaction: Since Netflix announced its pursuit of Warner Bros., its stock has declined; if the acquisition fails, the market may respond positively to a smaller ESPN deal, enhancing Netflix's content competitiveness and user experience.
See More
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- Acquisition Obstacles: Netflix's plan to acquire Warner Bros. Discovery for $72 billion faces antitrust scrutiny, particularly in Europe, which could delay or derail the deal, impacting its market expansion strategy.
- Potential ESPN Acquisition: Should the Warner Bros. deal fall through, Netflix may consider acquiring Disney's ESPN, which accounted for only 19% of Disney's $94.4 billion revenue in fiscal 2025, indicating its underperformance and potential as a strategic asset for Netflix.
- Increased Sports Investment: Netflix has begun significant investments in live sports, becoming the exclusive broadcaster of NFL games on Christmas, demonstrating its commitment to content diversification and user engagement, which could enhance customer retention.
- Market Reaction: Since announcing the Warner Bros. acquisition, Netflix's stock has declined, and a pivot to acquiring ESPN could be viewed favorably by the market, potentially improving its content cost structure and enhancing competitiveness.
See More
Netflix's Future Outlook and Challenges
- Market Dominance: Despite Netflix's stock underperforming the S&P 500 by 11% over the past year, its influence in the global entertainment industry remains strong, with projected revenues of $45 billion in 2025, reflecting a 16% annual growth rate that underscores its ongoing content creation capabilities.
- Acquisition Challenges: The all-cash acquisition of Warner Bros. for $82.7 billion may strain Netflix's liquidity, leading to a pause in stock repurchases; however, this move could solidify its leadership in the streaming market, potentially attracting investor interest.
- Slowing Revenue Growth: Netflix anticipates revenue growth to slow to 12%-14% in 2026, down from 2025's rate, which could further dampen investor sentiment, especially given its liquidity of only $9 billion, necessitating stock dilution or increased debt to finance the acquisition.
- Advertising Revenue Potential: Despite these challenges, Netflix expects its advertising revenue to nearly double by 2026, indicating significant potential for diversifying income sources, which may attract more users and enhance market share in the competitive streaming landscape.
See More
Alphabet's Market Dominance and Financial Strength
- Market Share Advantage: Alphabet's Google search engine commands a 90% market share, serving as the primary revenue driver, contributing 55% of the $113.8 billion in Q4 2025, showcasing its formidable competitive strength in the search market.
- Diverse Product Line: In addition to Google, Alphabet's Chrome browser and Android operating system hold 71% and 70% market shares respectively, further solidifying its leadership in the tech sector and ensuring long-term revenue stability.
- Strong Cash Flow: Alphabet generated $73 billion in trailing free cash flow over the past year, indicating robust financial health that provides ample funding for future technology investments and market expansion.
- Cutting-edge Technology Focus: Alphabet is actively investing in artificial intelligence and autonomous vehicles through projects like Waymo, demonstrating its potential in future tech markets and enhancing its long-term investment appeal.
See More
Alphabet: A Tech Giant for Long-Term Investment
- Market Dominance: Alphabet's market cap reached $4 trillion before a recent dip, showcasing its significant competitive advantage in the tech sector, particularly with Google holding a 90% share of the search engine market, indicating robust market control.
- Revenue Source: In Q4 2025, Google Search accounted for 55% of Alphabet's revenue, approximately $113.8 billion, highlighting its critical role in the company's overall financial health.
- Diversified Advantages: Alphabet maintains dominant positions in multiple markets, with Chrome and Android holding 71% and 70% market shares respectively, further solidifying its leadership in the tech industry.
- Future Outlook: Google Search, Chrome, and Android are expected to remain market leaders over the next decade, and with $73 billion in free cash flow, Alphabet's investments in AI and autonomous vehicles will provide strong support for long-term growth.
See More
Super Bowl LX: Seahawks Defeat Patriots 29-13
- Game Outcome: On February 8, 2026, Super Bowl LX saw the Seattle Seahawks defeat the New England Patriots 29-13, with 30 of the 42 total points scored in the fourth quarter, highlighting the game's intensity and enhancing the Seahawks' brand image.
- Ad Performance: According to USA Today's Ad Meter, brands like Anheuser-Busch, Lay's, and Dunkin' resonated well with viewers again this year, indicating effective emotional and comedic messaging strategies that continue to engage audiences.
- Viewer Feedback: Some ads featuring AI tools failed to win over viewers, reflecting a limited acceptance of technology-driven advertising among consumers, suggesting that companies need to reassess their advertising strategies to improve effectiveness.
- Market Impact: The Super Bowl remains a crucial platform for brand marketing, where successful ads can significantly boost brand visibility and directly influence sales performance, prompting companies to increase their advertising budgets in future campaigns.
See More
Netflix's $72 Billion Warner Bros. Deal Faces Antitrust Hurdles
- Acquisition Challenges: Netflix's $72 billion bid for Warner Bros. Discovery faces significant antitrust scrutiny, particularly in Europe, which could hinder its market expansion strategy and affect investor confidence.
- Potential ESPN Acquisition: Should the Warner Bros. deal collapse, Netflix may pivot to acquiring ESPN, which only contributed 19% of Disney's revenue in fiscal 2025 and has seen a 25% drop in operating profit, potentially allowing Netflix to reduce content costs significantly.
- Investment in Sports Content: Netflix is making substantial investments in live sports, including exclusive NFL Christmas games starting in 2024, indicating a strategic focus on sports content to attract more subscribers and enhance platform differentiation.
- Market Reaction: Since Netflix announced its pursuit of Warner Bros., its stock has declined; if the acquisition fails, the market may respond positively to a smaller ESPN deal, enhancing Netflix's content competitiveness and user experience.
See More
Netflix Faces Challenges in Warner Bros. Acquisition
- Acquisition Obstacles: Netflix's plan to acquire Warner Bros. Discovery for $72 billion faces antitrust scrutiny, particularly in Europe, which could delay or derail the deal, impacting its market expansion strategy.
- Potential ESPN Acquisition: Should the Warner Bros. deal fall through, Netflix may consider acquiring Disney's ESPN, which accounted for only 19% of Disney's $94.4 billion revenue in fiscal 2025, indicating its underperformance and potential as a strategic asset for Netflix.
- Increased Sports Investment: Netflix has begun significant investments in live sports, becoming the exclusive broadcaster of NFL games on Christmas, demonstrating its commitment to content diversification and user engagement, which could enhance customer retention.
- Market Reaction: Since announcing the Warner Bros. acquisition, Netflix's stock has declined, and a pivot to acquiring ESPN could be viewed favorably by the market, potentially improving its content cost structure and enhancing competitiveness.
See More
