Netflix Inc. should pursue a partnership with Sony Group Corp. to strengthen its intellectual property strategy following its failed acquisition of Warner Bros. Discovery Inc., according to money manager Mario Gabelli. The Gamco Investors Inc. founder and CEO suggested Netflix's global distribution reach could be amplified by tapping into Sony's expanding anime portfolio.

Gabelli, whose firm holds nearly 6 million shares of Warner Bros. and owns Netflix stock, sees the streaming landscape shifting toward consolidation. He's advising clients to reassess media holdings as dealmaking activity picks up, driven by spinoffs and improving financing conditions. The media veteran also highlighted "razor blade" businesses and sports franchise assets as promising investment opportunities.

Beyond streaming, Gabelli pointed to potential value in sports assets like Madison Square Garden Sports Corp., where his firm invests. He noted that growing acceptance of private equity stakes in leagues such as the NFL is creating new ownership structures. Global events like the World Cup could also boost soccer-related assets, including Manchester United Plc, whose largest shareholder is UK billionaire Jim Ratcliffe.