It seems so: Netflix shares are down 5.9% in afternoon trading even though the overall market is up slightly. The chill follows the disclosure late last week that Time Warner Cable is interested in becoming a co-owner of Hulu, which is weighing purchase and investment offers from seven companies. In addition to the No. 2 cable company, firms believed to be in the mix include Yahoo, KKR, Silver Lake Management/Hollywood agency WME, Guggenheim Digital, DirecTV, and the Chernin Group (in partnership with investors Qatar Holding and Providence Equity Partners). Netflix investors are particularly concerned about Time Warner Cable because it shows that “cable operators have to get in the Netflix world in order to compete,” says Maxim Group analyst John Tinker. “It highlights that [the streaming business] is going to become more competitive.” Shares in Coinstar — the company behind the Redbox rental kiosks and a new streaming venture with Verizon — are down 1.2%.
Are Netflix Investors Worried About Time Warner Cable’s Interest In Hulu?
What's Hot on Deadline
Latest Business News
- Obamageddon Hits Westside With POTUS Fundraisers & Road Closures
- Tegna Blacks Out Dish Network Customers In 38 Markets
- The ABCs Of Relativity: What Happened In Its Bankruptcy Case, And What’s Next?
- Paramount Extends Brad Grey To 2020 Amid Viacom Efforts To Rebuild Studio
- CAA Book Promises To Surprise, Will Hit Store Shelves Next Summer
- ‘Amazing Spider-Man 2’ Stuntman Slaps Age-Discrimination Suit On Sony, Marvel & Others