Merger and Acquisition Strategies - Netflix

Companies seek merger and acquisition strategies for many reasons including: the desire to ensure firm survival, the existence of free cash flow, agency problems between bidding form managers an equity holders, managerial hubris, and the possibility that some bidding firms might earn economic profits. 

Netflix has undergone a market extension merger in that the firm has gained access to complementary markets through an acquisition. Netflix began as a online DVD by mail service, expanded to stream videos live on many technological devices using the internet, and now produces their own television shows. This primary objective here is to gain access to new geographic markets. In 2010, Netflix launched in Canada. In 2011, Netflix expanded to the Latin American and Caribbean markets. In 2012, Netflix acquired the United Kington, Ireland, and the Nordics markets. 

Here is an article about why AMC and Netflix would be a good merger.