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Shares of Amazon, Netflix Rise From Rumors

Netflix stock has hit a reported three month high following reports that is considering purchasing the movie rental and streaming company. While most people are calling the deal a match made in heaven, Kara Swisher over at All Things D's BoomTown blog seems to think Microsoft would be a better fit for the Netflix acquisition rumors.

Kara cites several sources close to Microsoft who say that the deal Netflix and Microsoft announced last year, which allows users to watch movies and TV shows on the Xbox 360, is "on fire," and says that President of Microsoft’s Entertainment and Devices division, Robbie Bach has been meeting with Netflix CEO and Co-founder, Reed Hastings, about what else the pair can do together to expand its current partnership. Swisher also points out one major flaw with the rumors about Netflix and Amazon.

"But the speculation completely ignored the giant price needed to buy the Silicon Valley-based Netflix (NFLX)–well above its current $2.43 billion market cap, to be sure–which would be a big chunk of Amazon’s $35 billion valuation."

However, analysts seem to think the deal is plausible. The LA Times cites Jeffrey Lindsay, an analyst at Sanford C. Bernstein & Co. and Steve Weinstein of Pacific Crest Securities as saying Amazon buying Netflix is "not a crazy idea at all," and "You can envision certain positives if you put them together."

The LA Times said that Netflix shares rose as high as $43.07 before settling back to close at $42.19, a gain of $2.12, or 5.3%. Amazon shares gained $3.84, or 4.9%, to $81.47.

Who would you like to see buy Netflix, Amazon or Microsoft? Let us know in the comments below!

  • dman3k
    If M$ buys Netflix, does that mean CrApple will buy Blockbuster? If that's the case, I wish M$ will buy Netflix.

    Steve BJobs spends his money on buying a place in the organ donor waiting list. Bill Gate$ spends his money on curing AIDS and malaria and a hurricane suppression system.

  • lukeiamyourfather
    How about neither? Netflix is on the right track and I'm happy with the way it is now. I suppose the lesser of two evils would be Amazon though.
  • Hanin33
    i don't see how either company buying netflix would help the consumer out. it'll be positive for stockholders but the consumer will loose from any merger as choice will be reduced and progress slowed... but this is all moot if we can't have bandwidth from ISPs that seem to want to cap and meter us...
  • @dman3k - If you think the hospital accepted a bribe from Steve Jobs to get on the organ donor waiting list you are the biggest moron on the planet. Maybe you should get your head out of your ass and research the facts. Dumbass.
  • gsacks
    NEITHER! Netflix is better off as an independent company. Amazon would probably break it less than Microsoft though. M$ would almost certainly place additional M$-centric restrictions on the Netflix streaming service, whereas Amazon would want to widen the base as much as possible. I'll throw in that Google would be a better fit than either of the other two, but still not as good as just letting them stay independent. I think we need to start taking seriously our anti-trust trust laws. Every time a company gets big enough to become a real force in the market, they get eaten up by one of the bigger fish, keeping the number of players at a bare minimum. As another poster already wrote, the consumer usually loses out in these mega-mergers.
  • Hanin33
    Anonymous@dman3k - If you think the hospital accepted a bribe from Steve Jobs to get on the organ donor waiting list you are the biggest moron on the planet. Maybe you should get your head out of your ass and research the facts. Dumbass.
    that you think his money and social status had nothing to do with it being as speedy as it was is naive to say the least... maybe it wasn't technically a 'bribe' but i'm certain money and/or consideration for future monetary exchange was part of it in some way. NOTHING in life is free...
  • tacoslave
    i would say Microsoft(damn im gonna get flamed)because i would like to watch movies online through my 360 their i said it. hopefully they would make it cheaper but maybe im hoping to much.
  • Wayoffbase
    Full integration of streaming services into windows media center is the next logical step IMO, in fact I think you can already do it. They just need more content to stream. I hate the idea of big companies buying smaller companies but netflix getting bought could hasten the transition to all streaming media and that would be nice.
  • Luscious
    Life was good with NF and BB competing with each other. But with BB on the verge of bankruptcy having NF fall to a bigger prey would be only a loss for the consumer.

    I'll admit I'm a happy NF customer, BB not so much. That said, I think NF should stay as it is and keep it's peeps happy.
  • techguy378
    @hanin33 - Steve jobs simply had the money to afford the transplant either through health insurance or his own personal money. Just because he has the money to afford a particular medical procedure doesn't mean he got special treatment in any way, shape or form.