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Netflix May Be Acquired By Amazon

Thanks to rumors of a possible acquisition by Amazon, shares of Netflix stock took a slight jump earlier today, rising 6.6-percent. Whether the transaction will take place or remains as a rumor, the possibility has helped the share value since it peaked around $50 in April and then saw a 20-percent drop over the last few months. According to Bloomberg, trading has jumped to its highest since January.

“There’s heavy call buying and the stock is up on renewed takeover talk, with Amazon being mentioned specifically,” said Fred Ruffy, the senior options strategist at WhatsTrading.com, a New York-based provider of options market analysis. “It’s pretty typical of speculative call buying.”

For Amazon, acquiring Netflix would be a positive move even though both companies compete in delivering movies over the Internet. While consumers rent and buy digital movies and DVDs via Amazon, Netflix offers subscriptions and is also embedded in electronic devices such as the Xbox 360, DVD players and more.