Sunday, January 31, 2010

WSJ: Amazon may again be mulling Netflix buy | Media Maverick - CNET News

A sensible synergy scenario, imho

As Netflix continues to build one of the most formidable online movie services, investors continue to send the company's stock price soaring.

For that reason, Amazon.com may be considering an acquisition of the Web's No. 1 movie rental service, according to a report Thursday in The Wall Street Journal.

Rumors that Netflix is an acquisition target are nothing new and the Journal story is definitely long on speculation. But the author makes a good case for why an acquisition makes sense. For the past couple years, Netflix has been one of the tech sector's most compelling growth stories. This week, the company reported another blowout quarter, as profits rose 36 percent to $30.9 million and revenue jumped 24 percent to $445 million. Netflix also boosted the number of subscribers by 1 million, giving the company a total of 12 million.

WSJ: Amazon may again be mulling Netflix buy | Media Maverick - CNET News

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