Yahoo's bid for Hulu and the dozen other entities that are bidding about $2 billion have set a price ceiling on NFLX. Pretty clear now that everyone wants to COMPETE with NFLX, not buy them. So, when NFLX gets down to $80 per share or lower in the near term, maybe someone will buy them, but until then, they will prefer to compete. it's over, time for the funeral.
This is good news for Netflix. Hulu are getting run over by Netflix and are giving up. If Hulu, who own the content, and Amazon, the biggest internet company who make a living operating on razor thin margins, can't compete then nobody can.
I don't think this is good news. NFLX most profitable market is the US. If the bumbling fools at other streaming sites throw lots of money and abosrb lots of losses just to get a few million subs, the 10-15% of subs NFLX loses will throw it deep into the red. 4 million of NFLX 30 million subs add $1 per share to each quarterly post-tax. add foreign losses of $1 and lower DVD after tax margins of $0.6 and they lose $84 million per quarter. That will spin out of control within 9 months. If NFLX had $5 billion of capital they could fight fiercely for a long time, but they don't, they have $600 million and can only last 1 year of decline. If the other guys take more than 4 million subs, even quicker.