Shares in Netflix on Wednesday stumbled after Morgan Stanley analyst Benjamin Swinburne questioned the value to the streaming giant from potentially bidding to acquire Warner Bros. Discovery and prized properties like DC Comics and the Harry Potter and Lord of the Rings franchises.

While such a transaction may have long-term benefits for Netflix, Swinburne wrote the streamer “may have the smallest synergy opportunity and perhaps the toughest regulatory path” to completing the deal. He added in a Nov. 19 investors note that “Netflix shares have been under pressure over concerns that a WB acquisition, if announced, would complicate the investment thesis, distract management, and/or dilute EPS.”

Shares in Netflix on Wednesday stumbled after Morgan Stanley analyst Benjamin Swinburn

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