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Summary:

An interesting rumor, which makes logical sense if you think about it: Jackson Securities analyst Brian Bolan said in a note today that he h…

An interesting rumor, which makes logical sense if you think about it: Jackson Securities analyst Brian Bolan said in a note today that he has heard buyout speculation of Amazon.com buying Netflix from industry contacts. He noted it would make sense for Amazon to look at Netflix now, in part because Amazon’s stock has been trading higher lately. “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,” he said.

MediaBiz blog: Netflix’s stock has plunged nearly 18 percent this year as investors fear increased competition from the likes of Blockbuster and Movie Gallery. Netflix issued disappointing Q1 results and also lowered its full-year subscriber and revenue guidance. So in some respects, it does appear like Netflix could be ripe for the picking, the post says.

Barron’s: Bank of America analyst Brian Pitz writes that there is speculation of a $34 a share bid

  1. Richard Hanley Thursday, June 7, 2007

    Netflix is a mail order company with a heavy manual process. For each and every DVD that passes through Netflix, an envelop must be manually opened, each disc must be manually inspected, and each outgoing DVD must be manually stuffed in an envelop. Netflix now has about 44 distribution centers in which many low-paid workers do this work. The work is so potentially damaging to the muscles and tendons that it is mandatory for the workers to stop working every hour and a half to do mandatory exercises for half an hour. Do a Google search.

    With VOD, IPTV, DVD rental kiosks, video games and all kinds of interactive entertainment being made available, how likely is it that Netflix is worth $2,000,000,000 to Amazon?

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