Netflix announced that it was in talks to pay $300 million for a billboard company.
The online streaming site operator is looking to expand its presence in the physical advertising realm with the potential acquisition of Regency Outdoor Advertising, which specialized on outdoor billboards. The website is reportedly in a bidding war with other unnamed parties looking to acquire the Los Angeles-based company.
Netflix has yet to comment on rumors that the company may be shelling out more than $300 million for Regency Outdoor Advertising, which also did not comment on the matter. The move could help the streaming service provider an edge over its Hollywood counterparts as online streaming continues to increase in popularity while going to the cinema is not bringing in the numbers it used to.
This is especially true in Los Angeles where the company has plenty of billboards around town. Netflix believes that ramping up advertising could be a smart move while buying Regency Outdoor Advertising would allow it to save money in the long run as it wouldn’t have to pay so much to rent these billboards.
One of the key elements of a Netflix billboard is the company’s humor and creativity, including one billboard that said “Netflix is a joke,” which appeared to be a billboard from a rival but was really a promotion for the company’s recent addition of stand-up specials.
NFLX stock fell about 2% on Friday.