http://paidcontent.org/article/419-turner-chief-explains-how-tv-industry-will-neutralize-netflix/
http://blogs.forbes.com/dorothypomerantz/2011/01/03/could-netflix-buy-starz/
http://seekingalpha.com/article/244956-netflix-acquiring-starz-why#comments_header
There are to many headwinds for this stock for me not to short it. I see the major hurdle on two fronts.
1. The dollar amount that Netflix paid for content is coming up for renewal. They are going to have increases or have to buy Starz. This comes in at estimates around $75-$85 billion. This is half the enterprise value of the entire Netflix empire. So imagine the stock cut in half.
2. Competition: The barriers to entry for this product are not very high and some big names are looking to benefit. It isn't the distribution that the big names want it is the content. I don't see Netflix as a take over target anymore for this very reason.
Conclusion:
The stock is priced for perfection. They currently have a mini monopoly which will not last. I think Apple and Google are to smart to buy this company. So I am short Netflix.
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