'Netflix is an acquisition candidate'

Leon Cooperman is done with Netflix for now.

The hedge fund legend told CNBC on Wednesday that the video-streaming company is no longer in his portfolio for “no particular reasons.”

“I think ultimately Netflix is going to work, but I think somebody buys the company at a nice premium,” Cooperman, who founded Omega Advisors, said.

“Netflix is an acquisition candidate for somebody.”

Netflix’s most recent quarterly results showed that the company is struggling to grow domestic and international subscriptions, as it prepares to load its catalogue with even more original content.

“Another idea came in, I didn’t want to raise my exposure so I sold, and went to something else,” Cooperman said, without getting into details on Netflix’s business.

He said he also dumped his stake in Citigroup, and expects that banks will make more money if interest rates start to rise.

One company Cooperman likes is payments processor First Data. The stock trades at about half of the S&P 500’s the forward price-to-earnings ratio of 18x, and is cheap compared to the competition, he said. It gained 3.5% in trading.

More broadly speaking, Cooperman said he is about 65% exposed to stocks, below the norm of about 85%-90%.

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