The simple fact of the matter is it’s always difficult, though not impossible, to acquire a company at less than its 52-week high share price point, which was north of $700 for Netflix back in November and now hovers around $200. This isn’t a concrete rule — Twitter is down 45% from its 52-week high yet still in the midst of a sale — but often a guiding principle. “That is the psychological anchor,” David Offenberg, associate professor of entertainment finance at LMU’s College of Business Administration, told TheWrap. “That’s where the shareholders are stuck and they’re not going to want the company sold for less than that price.”
Source: The Wrap
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