In a Thursday note, the analyst wrote that he is "surprisingly" open to an acquisition by Disney of Netflix, which would come at considerable cost. He added, though, that he is not calling for a deal and has no idea if one is in the works.
Disney stock was rising about 0.4% to $99.50 in mid-morning trading on Thursday. The stock is down about 6% year-to-date. Shares of Netflix, which is based in Los Gatos, Calif., were down 1.3% to $115.37 on Thursday. Netflix stock has risen about 2% so far this year.
A tie-up between the two has been the subject of much recent speculation. The companies have also already set a precedent for working together. In September, Netflix became the exclusive pay-TV service for new movies by Disney's Marvel, Pixar, Lucasfilm and Disney Studios.
Juenger noted that initially he was skeptical of a merger between the two companies because of the cost, which Juenger noted could be as much as $70 billion. In addition, Juenger wrote, "to the extent that Disney accelerated the success of the company being acquired (which is usually the point of an acquisition in the first place), the faster it would cause the demise of Disney's core TV network businesses," he said.
"But then we reminded ourselves -- we believe the demise will happen anyway," he added.
Disney, based in Burbank, Calif., owns networks such as ESPN, the Disney Channel and Freeform, formerly ABC Family. In the 2016 fourth quarter ended Oct. 1, Disney's overall media networks revenue slid 3% year-over-year, led by a 7% decline in cable networks revenue.