When Disney and Iger originally made the $52 billion bid for 21st Century Fox assets the view among many on the Street was that with the company’s streaming standalone service set to launch in 2019 gaining these massive content assets, sports networks/content, and ownership of the crown jewel Hulu was a major competitive threat to Netflix with Iger piloting the streaming plane. This ultimately was a lingering overhang for Netflix as essentially the company has dominated the streaming world with 125 million subs and growing rapidly, spending $8 billion this year on content (mostly original), and thus being the spark that will cause a massive consolidation wave across the media and broader TMT landscape with AT&T/Time Warner and the 21st Century Fox asset jump ball just the tip of the iceberg in our opinion. For Netflix, Disney’s ownership of Sky assets, Hulu, and all the golden 21st Century assets would make Iger & Co. a legitimate force in the streaming world for years to come and thus form a content behemoth that would rival Netflix from a content perspective with a unique web of distribution capabilities and brand awareness that is unmatched. To this point, Comcast entering the 21st Century sweepstakes last night with a robust $65 billion all cash bid has thrown a “major wrench into Iger’s plans” and ultimately that is a positive for Netflix. From Netflix’s perspective a bidding war and potentially a breakup up of some key assets to multiple bidders (Hulu front and center, Sky) to navigate any regulatory hurdles would be a major win for Hastings & Co. not to have all these assets under one hood and especially under the control of Disney. While Comcast longer term if they win this battle would have major content assets on the streaming front and likely become a significant streaming player over time (2-3 years down the road), Disney remains the most viable competitive threat to Netflix near-term especially with its standalone service set to launch in the next 9 months and 35-40% of domestic box office share/content potentially under its hood. While this battle for the 21st Century assets is set to play out over the coming weeks, Netflix will be watching the situation closely as the Disney competitive shadows on the streaming front will become a lot less onerous if Comcast and Roberts ultimately prevail in its bid. We maintain our Highly Attractive rating and $400 price target on Netflix.