Netflix's Acquisition Wishlist: A Closer Look at the Remaining Targets

Following the recent loss of a bid for Warner Bros. Discovery, Netflix has been left to ponder its next move in the world of streaming acquisitions. The company's failed attempt to acquire the media giant has provided valuable lessons for the streaming giant, particularly when it comes to regulatory feasibility and strategic fit. With this in mind, we take a closer look at the remaining targets on Netflix's wishlist, examining the strengths and weaknesses of each potential acquisition.

Assessing the Remaining Targets

After the Warner Bros. episode, it's clear that regulatory feasibility now outranks pure strategic fit when evaluating potential acquisition targets. This shift in priorities has significant implications for Netflix's future deals, particularly when it comes to the company's historical preference for small tuck-ins. With this in mind, let's examine the remaining targets on Netflix's wishlist, from least likely to most likely.

Least Likely: Roku

Roku is a highly attractive target for Netflix, offering an operating system layer, an ad-tech stack, and first-party viewing data across a device install base that has surpassed 100 million streaming households. However, the company's recent agreement to be acquired by Fox Corporation has effectively made it unavailable to Netflix. The deal premium has already driven shares up 46.4% year to date, reflecting the value that Fox is placing on the company. With a pending transaction in place, a Netflix counterbid would need to outbid Fox and survive antitrust scrutiny over a streamer acquiring the largest CTV platform.

Unlikely: FuboTV

FuboTV offers live sports rights and a virtual MVPD structure that Netflix does not operate. However, the company's recent merger with Hulu + Live TV has made Disney the controlling shareholder, effectively ruling out a potential acquisition by Netflix. CEO Alisa Bowen has highlighted Fubo's strengths, including its position as the number one virtual pay TV operator in the US market, but Disney's ownership makes it unlikely that the company would sell to Netflix.

Unlikely: Roblox

Roblox would hand Netflix a user-generated content platform, a gaming beachhead, and a young demographic. However, the company's market cap of roughly $30.5 billion, founder control via a dual-class structure, and a user-generated content (UGC) business that Netflix has no experience operating make it an unlikely target. The company's Q2 revenue grew 36% to $1.5 billion, but the price tag and model mismatch keep it out of reach for Netflix.

Most Likely: Lionsgate Studios

Lionsgate Studios is the pure-play content studio that Netflix could actually buy. The company owns franchises including John Wick, Hunger Games, Now You See Me, The Housemaid, and Michael, and has a strong track record of revenue growth. Q1 FY2027 revenue rose 48% year over year to $777 million, with trailing 12-month library revenue of $987 million and a $1.5 billion backlog, up 21% year over year. CEO Jon Feltheimer has highlighted the company's "real strategic optionality" and called Lionsgate "one of the most compelling assets in a rapidly consolidating marketplace." The company's licensing deal with Netflix, which will see the Power series on the platform beginning in November, is evidence that the two companies already do business together.

What to Watch Next

While Lionsgate Studios is the most likely target on Netflix's wishlist, it's essential to remember that the company's track record favors small tuck-ins, not studio takeouts. None of these potential acquisitions should be treated as an investment case, and readers should weigh each name on its standalone fundamentals rather than takeover odds. If you have cash sitting in your account right now, consider taking a closer look at the Top 10 Stocks To Buy Today, as identified by 24/7 Wall St.'s top analysts. Their research has identified the 10 best stocks to buy right now, and it's free to access.

Conclusion

Netflix's failed bid for Warner Bros. Discovery has provided valuable lessons for the streaming giant, particularly when it comes to regulatory feasibility and strategic fit. With this in mind, the remaining targets on Netflix's wishlist have been assessed, from least likely to most likely. While Lionsgate Studios is the most plausible target, it's essential to remember that the company's track record favors small tuck-ins, not studio takeouts. As the streaming landscape continues to evolve, one thing is clear: Netflix's next move will be closely watched by investors and industry insiders alike.