Netflix shares fell on Wednesday after Morgan Stanley analyst Benjamin Swinburne
raised doubts about the benefits of Netflix potentially buying Warner Bros.
Discovery, including popular properties like DC Comics, Harry Potter, and Lord
of the Rings.
Swinburne said that while the deal could help Netflix in the long run, it may
offer the least synergy and face the toughest regulatory challenges. In a
November 19 note to investors, he added that concerns about a Warner Bros.
acquisition could hurt Netflix’s investment appeal, distract management, or
reduce earnings per share (EPS).