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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] New York — Shares of streaming giant Netflix (NFLX) extended their decline on Tuesday amid rising regulatory risks tied to its pursuit of an acquisition of Warner Bros. Discovery (WBD). News of a large insider sale by the company’s co-founder further pressured the stock.
Netflix fell 5.80% (–$6.35) to $103.00 as of Tuesday’s session.
Reuters reported the previous day that Netflix, in discussions with Warner Bros., proposed bundling Warner’s streaming service Max with Netflix’s offerings to help lower consumer streaming costs. Analysts view this proposal as a preemptive measure to ease antitrust scrutiny, as the acquisition could strengthen Netflix’s market dominance and potentially raise consumer prices.
Adding to investor concerns, co-founder Reed Hastings sold $40.7 million worth of shares on December 1. Hastings had already sold roughly $126 million in stock across September and October, creating additional downward pressure on Netflix shares.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
