Netflix now edging Disney as largest show business firm at $153B

Netflix not only streams The Crown, but also looks poised to wear one — as the most valued U.S. entertainment company.

The Net TV company got a brief coronation Thursday when its market cap hit $153 billion US, surpassing that of Disney. However, by the time the market closed, Netflix declined to $151.8 billion, below Disney’s $152 billion.

Helping drive Netflix’s success: an aggressive recruitment strategy that has included the signing of beloved creators such as Shonda Rhimes (Scandal), Robert Kirkman (The Walking Dead) to development deals, and comedians Dave Chappelle and Jerry Seinfeld. Most recent recruits? President Barack Obama and Michelle Obama to a deal to produce films and TV series.

Meanwhile, other top media companies have seen their royalty status tarnished. Disney shares have dipped 8.6 per cent so far this year.

Shares in the nation’s largest pay TV and broadband provider, Comcast, which owns NBC Universal and is valued at $145.6 billion, US are down 24 per cent so far this year.

Disney and Comcast appear ready to engage in a bidding war for 21st Century Fox’s movie and TV studios and other assets, including a 30 per cent share in streaming service Hulu. Earlier this week, Comcast said it was preparing, but wasn’t certain to officially make, an all-cash offer to outbid Disney’s $52.4-billion bid, announced in December 2017, and approved by Fox’s board.

That deal is crucial to Disney’s strategy to take on Netflix in the streaming business, with its own exclusive Disney movie and TV service, expected to launch late next year.