Blackwells Capital Activist Presentation Deck
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POTENTIAL STRATEGIC ACQUIRERS
NETFLIX
Netflix would extend its global lead as the unrivaled leader in streaming content
and would add a new category to drive further subscriber growth and engagement
Re-accelerates revenue and profit growth following maturation of its target market
Immediate ability to bundle with 222 million Netflix subscribers to drive adoption
Compelling value proposition to extend existing "Content People Love" strategy
Seamless Content Integration: Peloton's ecosystem currently limits content to Peloton-
only content. A Peloton acquisition would significantly widen content available for
distribution to Netflix subscribers, which could attract new connected fitness subscribers
that are less focused on fitness classes
Increases Engagement: Streaming fitness classes through Netflix's platform should
widen the moat around its business and generate incrementally valuable customer data
Alignment with Increasing Focus on Interactive Content: Expands Netflix's potential in
furthering its efforts in the interactive / choose-your-own-adventure content that the
company has recently ventured into with the likes of Bandersnatch and Trivia Quest
Strategically Defensive Asset: Prevents other big tech / streaming competitors from
gaining trophy subscription fitness asset
BW BLACKWELLS CAPITAL
Netflix Leadership is Familiar with Peloton: Peloton Board Member Jay Hoag is the
Lead Director of Netflix; Barry McCarthy previously served as long-time CFO of Netflix
Company Overview¹
Market Cap ($M)
Enterprise Value ($M)
LTM Revenue ($M)
Cash and Short-Term Investments ($M)
Net Debt/LTM EBITDA
NETFLIX
Economic Benefits to Netflix²
(1) Source: CapIQ Pro and Company filings. All data as of April 8, 2022 unless specified otherwise. (2) Source: Company filings and publicly available data.
Note: Assumes PTON incremental margin of 60%, below managements guidance of 70%, on current subscription prices. Accretion based on 2022E EBITDA multiples per Capital IQ.
$157,998
$170,086
$29,698
$6,028
1.89x
Number of Subscribers:
Value Creation at Various Subscriber Penetration Rates:
2.5%
$37.0 billion
5.0%
$73.9 billion
10.0%
$147.8 billion
222 million
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