Pace Advances as Netflix Said to Be in U.S. Talks: London MoverRobert Valpuesta
Pace Plc rose the most in more than two months after Netflix Inc. was said to be in talks to add TV subscription-streaming services to set-top boxes of U.S. cable-television operators.
Pace supplies set-top boxes to pay-TV operators, and North America accounted for 55 percent of its $2.4 billion revenue last year. The Saltaire, England-based company’s stock gained
4.8 percent, the biggest rise since July 30.
Netflix, the largest subscription-streaming service, has had discussions with U.S. cable companies including Comcast Corp. and Time Warner Cable Inc., according to people familiar with the matter, who asked not to be named because the talks are private. The talks suggest cable operators increasingly see Netflix’s $7.99 monthly service as a tool to attract and retain customers, rather than a threat.
“Pay-TV operators seem to be getting a bit less political about allowing such over-the-top services to be bundled on their set-top boxes” and this will benefit Pace, Lee Simpson, an analyst at Jefferies LLC in London, said by phone today. Simpson recommends buying the stock and has a 12-month price target of 338 pence on the shares.
Pace climbed 12.5 pence to 274.5 pence in London, taking the advance to 46 percent this year and giving the company a market value of 861.5 million pounds ($1.38 billion).
The Wall Street Journal reported Netflix’s discussions with Comcast and Suddenlink Communications yesterday. Comcast and Suddenlink Communications yesterday.
Joris Evers, a Netflix spokesman, declined to comment on the talks, as did representatives from Suddenlink, Comcast and Time Warner Cable.
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