Rumors flew Tuesday about Netflix buying things. they said no to most of it. Stocks moved anyway. That is kind of how this works.
Someone Said Netflix Was Buying Lionsgate, but they said no
A report came out Tuesday saying Netflix was looking at acquiring Lionsgate. That was enough. Lionsgate shares shot up nearly 14% almost immediately. there shares fell 3.6% in the same session.
Then Netflix came out and said it is not interested in Lionsgate. Never submitted a formal bid. Not in talks. Not happening.
So Lionsgate went up 14% on a rumor that turned out to be wrong. Netflix went down 3.6% on the same rumor. Both moves happened before anyone checked whether the story was actually true. That is M&A rumor season for you. The headline moves first. The facts show up later with much less energy.
Roku Story Also Came Up.
Same day there were also reports that Netflix had looked at buying Roku at some point before walking away. Roku ended up getting acquired by Fox for $22 billion on Tuesday.
Netflix says it never actually put in a formal bid for Roku either. So two acquisition stories in one trading session. Netflix not seriously involved in either one according to them.
Worth noting though that Netflix is not completely allergic to big deals. Earlier this year the company bid $83 billion for Warner Bros. Discovery streaming assets. A competing offer came in at $110 billion and they chose not to go higher and walked away. So the appetite for large moves is there. Just has not resulted in anything closed yet.
Lionsgate Is Still an Interesting Company Regardless
Netflix saying no does not make Lionsgate less attractive as a target. Stock is up around 77% since January. Investors have been pricing in the value of what Lionsgate actually owns. John Wick. The Hunger Games. A library of content that bigger companies might want.
Market value is around $4.8 billion. That is not a big number in the context of Hollywood deals. Affordable for a lot of potential buyers. Netflix denying interest just means the next acquirer is probably someone else not that the company stops being a target.
Netflix Itself Is Not Having a Great Year
All this rumor activity is happening against a backdrop where Netflix stock is already struggling. Down about 14% so far in 2026. Trading near $78 right now.
Traders are watching $75 as a support level. Below that the 200-day moving average sits around $70. Those are the numbers people pay attention to when a stock is trending lower and looking for a floor.
Tuesday’s drop added to an already weak year for the stock. When you are down 14% and then the market also prices in a potential acquisition and then that acquisition gets denied in the same afternoon it is not a great combination.
Netflix is clearly looking at things. Taking meetings. Evaluating options. But there is a big gap between looking and actually buying. So far Netflix has been mostly in the looking category. Market is starting to wonder when or if that changes.