This article first appeared on GuruFocus.
Netflix (NASDAQ:NFLX) launched an $82.7 billion bid for Warner Bros. Discovery (NASDAQ:WBD) in a cash-and-stock offer that would reshape the global streaming market.
If completed, the deal would add Warner Bros. studios and HBO to Netflix’s catalog, while cable assets would remain separate, expanding the company’s content library and production capacity.
The proposal arrives as Netflix posts strong viewer metrics and hit franchises, yet it faces antitrust scrutiny and a rival hostile bid from Paramount Skydance, increasing uncertainty.
Executives say the merger could unlock scale benefits and new packaging options, but analysts warn integration costs and political scrutiny could delay or derail the transaction.
At current prices Netflix trades at a higher multiple than the S&P 500, though sell-side forecasts point to upside if regulators approve the acquisition.
Regulators, rival bidders and union groups complicate timing; executives expect a 12- to 18-month review before any closing.
Netflix Launches Massive $82.7 Billion Bid for WBD — Is NFLX Still a Buy?
Based on the one year price targets offered by 42 analysts, the average target price for Netflix Inc is $130.80 with a high estimate of $152.50 and a low estimate of $77.31. The average target implies a upside of +35.25% from the current price of $96.71.
Based on GuruFocus estimates, the estimated GF Value for Netflix Inc in one year is $95.38, suggesting a downside of -1.38% from the current price of $96.71. gf value is gurufocus’ estimate of the fair value that the stock should be traded at. it is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. For deeper insights, visit the forecast page.