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Netflix (NFLX) Stock Pops on Unfounded Buyout and China Rumors

Ryan McQueeney
Updated

Shares of Netflix NFLX popped over 4% in after-hours trading Thursday because… well… nobody quite knows why. Of course, the internet decided to fill in the gaps itself, and now the investment world is buzzing about the potential for the video streaming giant to move into China or perhaps be taken over.

The prevailing Netflix rumor recently has been that a company like Disney DIS may be interested in purchasing the video streamer. Disney and its television networks have been hurt by subscribers switching over to Netflix and ditching live TV all together. The company desperately needs to get people watching ESPN again, but some think an easier solution would be to just snatch up Netflix while it can.

Of course, that rumor might make a little more sense had Disney not just partnered up with Netflix to make the Los Gatos, California-based company the exclusive online streaming provider of Disney content. I guess I’m just scratching my head over why that move would happen if Disney knew it would be making an offer on Netflix soon regardless.

The next big rumor surrounding Netflix is that it will make a deal to enter China soon. Here we actually have a little bit of something real to go off of. Speaking at a media event in Seoul today, Netflix’s chief content officer Ted Sarandos said “Since China is a great opportunity, we continue to look into China,” Reuters reports.

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Even still, Netflix continuing to “look into China” is far from Netflix striking a deal to enter the country. Of course, China is known for its strict censorship and content laws, typically favoring Chinese content over that of foreign companies and producers.

If anything, today’s after-hours activity is another example of an extremely antsy market. Investors are quick to trade on any bit of news they get, even if that news can’t be confirmed.

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