Netflix Shares Rise on Disney Chatter

In addition to Twitter, Disney reportedly eyeing deal for OTT giant
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Netflix shares closed up more than 4% Monday amid rumors that the Walt Disney Co. was eyeing an acquisition of the OTT video giant.

A deal for Netflix would give Disney more original content, more control of its distribution via Netflix, and more infrastructure to deliver its content to a massive array of connected devices.

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Disney, which has also been rumored to be eyeing Twitter, has been bulking up on technologies and systems that underpin OTT distribution. In August, Disney announced it was acquiring 33% of BAMTech, the tech services and video streaming operation launched by Major League Baseball, for $1 billion, plus an option to buy a controlling stake in coming years.

A Netflix offiicial said the company does not comment on rumors. Disney has been asked to comment.

MarketWatch also cited a research note from R.W. Baird analyst William Power that is driving some of the M&A speculation centered on Netflix. "Whether Disney, Apple or someone else, Netflix could become a target," he write.