Amazon to Buy Netflix?
June 6th, 2007 in The Movie Biz
The business world is buzzing that online retailer Amazon may be in talks of buying Netflix. Jackson Securities analyst Brian Bolan stated he is hearing rumors of the buyout. Amazon has a ton of cash on hand and Netflix would be another piece of ammunition in a wide arsenal of products. Netflix may want to sell due to increased competition from Blockbuster. Amazon has the capital to compete with just about anyone out there so a buyout makes sense. Investors pushed the stock price of Netflix up 5 1/2 percent today while shares of Amazon lost a little more than 1%.
The old rumor is where there is smoke there is fire so their is probably some truth to the rumor. Now, how this will affect movie viewers remains to be seen. It could be good if Amazon decides to press the pricing on movies to lure more traffic to there vast array of products. Amazon is probably wants a bigger piece in the digital movie game as they compete with Apple’s iTunes and are setting up there own music store. It should be interesting to see how this one takes shape and will keep you posted if any more news should emerge. It could have an effect on you if you use either Blockbuster or Netflix service.
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