James Delahunty
8 Jun 2007 8:09
According to an Associated Press report, Amazon may be about to buy online movie rental (and now video-on-demand) service Netflix, in a deal that could cost over $1.5 billion. At least that is what's coming from a Jackson Securities analyst named Brian Bolan who has "heard buyout speculation from industry contacts."
"[Amazon has] 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," the AP quotes Bolan as saying.
Netflix's rental service delivers DVDs through the mail. It has faced tough competition from rival Blockbuster, which has gotten much more competitive in recent times. The company also launched a video-on-demand service earlier this year called "Watch Now", similar to Amazon's Unbox service.
Source:
The Register