Pivotal Research Analyst Says Comcast-Netflix Deal Would Not Make Sense

Speaking to Benzinga, Pivotal Research Analyst Jeffrey Wlodarczak said that a Comcast Corporation (NASDAQ: CMCSA) bid for Netflix, Inc. (NASDAQ: NFLX) does not make sense, especially in the context of Comcast trying to get a deal with Time Warner Cable Inc (NYSE: TWC).

“Once the Time Warner Cable deal is over with, I’m not sure they want to revisit FCC any time soon,” he said.

But Wlodarczak mentioned that one can’t rule out any large distributor for Netflix, and Comcast spends a lot of money on content, so it would give Netflix even more scale.

Wlodarczak added that he doesn’t think Netflix CEO Reed Hastings would be interested in selling to a traditional media company.

“If he sells, it would probably be to some new media company like an Apple or Amazon or Google,” he said.

Netflix was trading about 0.41 percent lower, though did see a sharp spike when the rumor intially surfaced.

Comcast was 0.28 higher.

Brianna Valleskey contributed to this report.