Eros - The Netflix Of India - Is Plunging Despite Unconfirmed Chatter Of Potential Acquisition
Shares of Eros International plc (NYSE: EROS), an India-based film and entertainment company, were trading lower by around 12 percent at $6.98 mid-Thursday afternoon.
Eros International co-produces, acquires and distributes Indian language films. The company owns a portfolio of over 2,300 films and holds the digital rights for an additional 700 films.
Unconfirmed market chatter surfaced that said Netflix, Inc. (NASDAQ: NFLX) may be eyeing Eros as an acquisition target.
Back in September 2015, Bloomberg interviewed Eros International's CEO, Kishore Lulla, who said his company is "exactly where Netflix wants to be in the next three to five years."
Netflix's expansion into the Indian market was confirmed by Indian-based media sources, such as The Indian Express.
The Indian Express noted that Netflix has "limited Indian content" and is currently working on getting partners on board. This may have led investors and traders to speculate that Netflix would be interested in acquiring, or at the very least partnering, with Eros International.
Shares of Netflix were also trading down about 3.5 percent at $113.49.
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