Should Netflix Buy UFC And WWE? Clay Travis Thinks It's A Match Made In Heaven
Fox Sports college football analyst Clay Travis believes World Wrestling Entertainment, Inc. (NYSE: WWE) and Netflix, Inc. (NASDAQ: NFLX) are a match made in heaven. In fact, according to Travis, who is a WWE shareholder, WWE and UFC could be a quick fix to Netflix’s one remaining shortcoming: live programming.
“Given how rapidly media companies have gobbled up independent companies like Pixar, Dreamworks, Marvel and Lucas Films over the past decade, it’s inevitable that someone will come along and buy out WWE as well,” Travis argues.
He estimates Netflix could instantly add hundreds of thousands of unique WWE Network subscribers to its platform if it were to combine the two services.
Travis places a $2.5 billion price tag on WWE, but points out that Netflix already plans to spend $6 billion on exclusive content this year.
Travis calls his potential deal a “steal” for Netflix and points out that Comcast Corporation (NASDAQ: CMCSA) is already paying nearly $250 annually for WWE programming which it doesn’t own. Comcast also doesn’t even have access to archived WWE content. At that annual rate, Travis believes Netflix could have a WWE buyout paid for in 10 years.
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Travis added that Netflix could also buy out UFC for around $3.5 billion and could instantly have a major live sports presence overnight.
“If Netflix bought the WWE and the UFC they could add a premium sports charge or, in an even smarter move, they could just up the subscription fee over time arguing that you’re now getting a better value than you were before,” he concludes.
So far in 2016, WWE’s stock is down 3.5 percent, while Netflix has tanked 20.3 percent.
Disclosure: the author holds no position in the stocks mentioned.
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