In January, when we recommended investors buy shares in Entertainment One (ETO) based on its appeal as a takeover target, we suggested that Netflix (US:NFLX) might be a buyer. The news that the US digital TV company has commissioned a third season of EOne’s Designated Survivor has added weight to that argument. Netflix, in its hunt for original content, is already turning to the UK-listed company, and it may yet bring the whole portfolio under its ownership.
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Judging by EOne’s share price movement, we are not the only ones who think it looks primed for a takeover. The stock has risen more than 50 per cent in the last year as the value of original TV content soars.
