Comcast’s decision to spin off NBCUniversal and Sky has sparked speculation that Netflix could revive its appetite for a major media acquisition. But analysts say several financial, regulatory and strategic hurdles make such a deal unlikely.

The speculation follows Netflix’s unsuccessful attempt to acquire Warner Bros. Discovery’s streaming and studio business before Skydance secured the assets with a higher bid.

Comcast executives quickly dismissed suggestions that the spin-off signals plans to sell NBCUniversal.

“Our plan for NBCUniversal and Sky is to build and invest for growth,” Mike Cavanagh, who will become CEO of the standalone NBCUniversal, said. “We have the ambition, that’s big, to pursue opportunities that keep us ahead of evolving consumer behaviour and audience demands. And we have the freedom now to explore adjacent businesses where we have the right to play.”

Analysts see major obstacles

Craig Moffett, principal analyst and co-founder of MoffettNathanson, said a sale would not happen anytime soon.

“To preserve the tax-free nature of the spin, a sale [of NBCU] can’t even be contemplated for a couple of years,” he said.

Moffett also believes Netflix wanted Warner Bros. Discovery because of its deep content library and valuable intellectual property.

“When Netflix made its run at WBD, it arguably tipped its hand. Netflix wanted Warner’s library, and it wanted Warner’s IP.”

He added that Peacock’s smaller size does not justify a takeover.

“Peacock’s scale problem doesn’t demand M&A. It can be far more readily addressed through simple distribution agreements. The scale that matters isn’t the size of the company, it’s the size of the content bundle.”

Theme parks and broadcast assets complicate a deal

LightShed Partners analyst Rich Greenfield argued that NBCUniversal does not fit Netflix’s business model.

“Peacock is not an asset Netflix would want to buy or maintain,” he said. He also added, “We also find it hard to believe Netflix really wants to own a large theme park business, which is NBCU’s primary asset.”

Netflix co-CEO Ted Sarandos previously described the company’s pursuit of Warner Bros. Discovery as “a ‘nice to have,’ not a ‘need to have,’” suggesting the streaming giant is unlikely to launch another aggressive bid for a traditional media company such as NBCUniversal.