Here’s Why CFRA Downgraded Netflix (NFLX) to Hold From Buy

Group 1 - Netflix, Inc. has been downgraded to Hold from Buy by CFRA, with a price target reduced from $130 to $100 due to concerns over its pending acquisition of Warner Bros Discovery and the associated risks from Warner's high debt [1] - CFRA suggests that a potential bidding war with Paramount for the acquisition could increase Netflix's debt financing [1] - Warner Bros' board unanimously recommended shareholders reject Paramount's earlier bid in favor of Netflix's offer, citing the latter's more secure financing despite a lower cash offer of $23.25 per share [3] Group 2 - Paramount's latest offer to buy Warner Bros Discovery has been deemed insufficient by prominent shareholder Harris Oakmark, indicating that a greater incentive is needed for a successful bid [2] - The time frame for Warner Bros investors to accept or reject Paramount's tender offer has been extended from January 8 to January 21 [2] - Netflix operates in around 190 countries, providing entertainment services through paid memberships and acquiring, producing, and licensing content for streaming [4]