Netflix shares surge on Disney takeover speculation

Shares in television streaming service Netflix rose on Monday during active trading, after reports of a possible acquisition bid from Disney.

Speculation began on 30 September about the bid and continued to be rife over the weekend. The shares rallied 4.14% in US trading on the back of the reports.

Netflix will release its quarterly earnings report in the next two weeks, amid suggestions that subscriptions in the world's largest online television service are beginning to falter.

Disney has a record of successful acquisitions, and the move is thought to be an attempt from the company to strengthen its streaming segments.

Reports also emerged last week that the entertainment corporation was also interested in a deal for social network Twitter, which has struggled with growing its user base in recent months.

Disney shares have fallen 12% this year, despite a solid showing from its film business.