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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.

  • jacobdrj
    Boooo! Booooo! Bad merger! SEC don't let it happen!
    Reply
  • apmyhr
    I love my Netflix. I don't have any strong feelings for or against Amazon specifically, but I am afraid of some company buying out Netflix and turning it into crap.
    Reply
  • tenor77
    Nooooooooooooooooooooooooo!

    Seriously, we don't need to be merging the few options for movie streaming.
    Reply
  • TheDraac
    I agree.... NO MERGER.... Let Netflix do what they do best and let'em continue....
    Reply
  • bigalfantasy2004
    I hope it doesn't happen, but if, by combining, they can get their movies for cheaper from the studios and pass the lower prices to us, it could be a win. But that's just wishful thinking.
    Reply
  • > bigalfantasy2004

    Mergers seem for the most part *BAD* for the consumer in the longrun. Prices may seem fair and even generous at 1st, but service usually takes a dive (Mergers are mostly about profit no?, so they're gonna cut *something* or make shortcuts somewhere to get more money.) and the prices begin creeping up as time goes by (Esp. if there aren't enough competitors at the same level.).

    I say NO NO and NO! We need more smaller companies, not larger ones that go belly up and take a wide range of services from the consumers in one swoop.
    Reply
  • cracklint
    Netflix povides a premium service at a price that no one can compete with, the unlimited streaming and cheap rentals(including blu-ray)isn't matched by anyone. I tell everyone who rents more than 3 movies a month and has internet access to check them out. It is one of the few companies that I feel confident to indorse. I can't imagine how this could possible turn out good for the consumer.
    Reply