Verizon May Buy Netflix
Last week we brought you a story about reports that Verizon was planning their own video streaming service to compete with Netflix and Hulu. The rumors were enough to put a significant dent in Netflix’s stock price that day. The next day, Verizon CEO Lowell McAdams added fuel to the fire when he said at a conference that his company had looked into buying video streaming service Hulu, which was looking for buyers over the summer.
Today, reports are circulating that Verizon is in talks to buy Netflix. The rumors apparently originate with a story run by DealReporter this morning. Like last week’s story, today’s rumor also had a significant impact on Netflix’s stock, but this time very much for the better. The company’s stock has risen $4.44 (6.26%), and is currently at $75.33.
Today’s report follows yet another rumor regarding Verizon, namely that the company has also been in talks with RedBox to put together a streaming and downloading service. RedBox has been hinting for some time that it planned to branch out into streaming. The deal would create a subscription, streaming, and downloading service that would include physical disc rentals and cost $5.95 a month for 6 credits. The service, which is reportedly planned to launch in late May, would be available across several platforms, including iOS, Android, Roku, Xbox, and Google TV.
The Netflix deal is still very much a rumor at this point, though the RedBox deal seems more certain. What seems undeniable, though, is that Verizon definitely does want to get into the streaming video business. What remains to be seen is how and when they will do it, exactly.
What do you think? Will Verizon buy Netflix? Should they? Let us know in the comments.