From The Rumor Mill: Amazon To Buy Netflix
Amazon’s got its fingers in a little bit of everything these days, and it may soon have them in Netflix, as well. This information has been very clearly marked as a rumor, and yet some heads are nodding, and Netflix’s stock price is rising.
As reported by the Associated Press, “Jackson Securities analyst Brian Bolan said he has heard buyout speculation from industry contacts, and noted it would make sense for Amazon to look at Netflix now, in part because Amazon’s stock has been trading higher lately.”
An acquisition would also fit a recent trend of Amazon’s behavior; the company recently partnered with Joyo, bought Brilliance Audio, and announced a new music store. Amazon gave up a patent battle with IBM, as well – perhaps to conserve its energy and money for something else?
Brian Bolan even stated, “They’ve got excess currency, if you will. Netflix, on the other hand, has been facing stiff competition from Blockbuster and everyone else, so they’ve seen their stock go lower.”
As with most situations like this, there’s no telling when definite news (one way or the other) about the acquisition could come. And at this point, the only price being floated around is Bolan’s own: $1.5 billion. Still, keep an eye out for further developments in this story.