YouKu Tudou (YOKU) saw its stock jump +17% higher today, after it delivered a solid quarterly report last night. We had a nice position on the June 23 calls and took the profits in today:
This trade also helped to move my Ecstatic Plays portfolio value up even more! It is now up +150% since I started trading this portfolio in August 2014!
Recently, NFLX was reported to be in conversation to enter China. YOKU is one of the most popular sites that stream TV programs and movies online. Is YOKU in the conversation? Could NFLX partner up with YOKU for its China entry?
TWC is reported to be engaging in talks to be acquired by the European cable provider Altice SA. After the market today, FCC chairman reached out to the CEOs of TWC and CHTR to convey that the agency is not against cable deals. Will this bring CHTR back to the negotiation table?
Now, if TWC is a takeover target, how about NFLX? There certainly has been speculations before. As of the market close today, TWC is valued at $46.8 billion, while NFLX is much cheaper, valued at $37.8 billion.
Who would be possible suitors? AAPL, of couse, has the deepest pocket and can easily buy NFLX with cash. The recent comment from Carl Icahn and today’s new target of $195 from Morgan Stanley has sent AAPL shares on a little run this week. AAPL was up +1% at $131.39 today. With Apple TV out of the picture (or is it?), is purchasing NFLX in the plans?
Then, there’s AMZN! Amazon’s Prime service is already streaming movies and TV programs. But, does AMZN have the financial prowess to gobble up NFLX? Although more unlikely, could GOOG be a player in all of this? It does have YouTube, and it has been working with independent film makers to create original programs.
As I mentioned in my previous article, this space is hot! More mergers are certainly going to happen. NFLX was up slightly again today. AMZN was up over $12 at one point. GOOG was up more than $3. Whichever gets a deal, or even just an interest of a deal, to buy NFLX will likely see a pop in its stock. NFLX, itself, will likely see $650 before anything happens!
Good night and HappyTrading! ™