Reed Hastings says Netflix has 'no big appetite, no big need' for mergers (NFLX)

Reed Hastings attends a panel during Netflix's 'See What's Next' event at Villa Miani on April 18, 2018 in Rome, Italy.

  • Netflix
    hasn’t made many acquisitions to date, and doesn’t plan to go on a
    shopping spree now, CEO Reed Hastings said Tuesday.
  • The company still has plenty of room to grow by just focusing
    on developing new shows and movies and improving its service, he
    said.
  • Hastings’ comments follow some major Hollywood mergers, and
    come amid pressure on new player Apple to get in the game.
  • Visit
    BusinessInsider.com for more stories
    .

Don’t expect Netflix to make any big acquisitions anytime
soon.

That was the word from CEO Reed Hastings Tuesday on a webcast
following the streaming media giant’s
first-quarter earnings report
. In its more than 20 years of
existence, Netflix has only made a few minor acquisitions, he
noted. It’s not planning on changing its ways now and getting more
active in the mergers-and-acquisition market, he said.

“I don’t think investors have too much to worry about there,”
Hastings said. Netflix, he continued, has “no big appetite, no big
need.”

Hollywood has seen some big mergers of late. On Monday, Hulu
announced that it had
bought AT&T’s shares in the streaming company
. Last month,
Disney
completed its purchase of 21st Century Fox
. Last year, AT&T
snapped up Time Warner
.

Meanwhile, some analysts have been urging Apple, which is

due to launch its own streaming media service later this
year
to
buy some studios or content producers

to bulk up its library of movies and TV shows
.

Read this:
The ‘clock has struck midnight’ for Apple: It needs to buy a major
Hollywood studio this year or lose the streaming war to Netflix and
Amazon

But Hastings doesn’t think Netflix needs to play in that market.
Despite being the largest streaming video service with 149 million
paid subscribers worldwide, it has plenty of room to get bigger, he
said.

“We’ve got clear sailing ahead,” Hastings said. “If we can
produce the world’s best content, if we can deliver it with the
best user interface, then we can grow for many, many years ahead.
So that’s what we’re focused on.”

Netflix’s first-quarter results beat Wall Street expectations,
but it warned that its second-quarter subscriber growth would be
slower than analysts expected. It also said it expected its
operations and investments to burn through $3.5 billion in cash
this year, about $500 million more than it previously
projected. 

SEE ALSO: Apple
needs to get serious about video. Here are 3 Hollywood studios it
could buy to boost its new streaming service.


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Reed Hastings says Netflix has 'no big appetite, no big need' for mergers (NFLX)