Why Netflix (NFLX) Stock Could Be Affected By A 21st Century Fox (FOXA), Time Warner (TWX) Merger

NEW YORK (TheStreet) -- Netflix (NFLX) shares could be impacted by 21st Century Fox's (FOXA) unsuccessful $80 billion bid for Time Warner (TWX).

The $85 per share Fox offered for Time Warner could support Netflix valuation if Mediatech Capital Partners analyst Porter Bibb is correct about Fox's main interest in Time Warner being its HBO segment and its global streaming opportunity.

Fox's takeover bid was spurred by its interest in the Time Warner's HBO segment, according to a Bloomberg TV interview with Bibb, and if Fox is willing to spend $80 billion for control of HBO's content and distribution, Netflix's own valuation could benefit.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. 

Netflix shares are up 0.4% to $450.96 in early market trading today.

TheStreet Ratings team rates NETFLIX INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate NETFLIX INC (NFLX) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."

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