Netflix Shares Up On Amazon.com Buyout Possibility Rumor

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

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