Chanos looking at possible bet against Netflix, others in content space
Famed short seller Jim Chanos is putting Netflix and other entertainment content providers in his crosshairs.
Though he hasn’t established a formal position yet, the head of Kynikos Associates sees opportunity as the competition heats up and cost starts becoming an issue.
“We’re looking at all of them, let’s just say that, but one or two more than the others,” Chanos told CNBC’s “Closing Bell” in an interview Thursday.
Netflix’s shares in particular have been on fire all year, rising some 53% including a 1% gain as Chanos gave his remarks from the sidelines of a conference in New York.
However, the hedge fund manager sees the landscape shifting. The Federal Communications Commission’s move to eliminate net neutrality rules that seek to provide equal access to online content is one particular wild card.
“Netflix came out this afternoon and sort of lambasted the change of net neutrality,” he said. “Yet for years now they have said when asked that the change in net neutrality would not have a material effect on their business. Which is it?”
Crux note: There’s been a lot of misinformation floating around about the net neutrality decision. Get the story the mainstream media isn’t telling you — and why its bad news for companies like Netflix — in our recent two-part series: