Buzz Watch: Netflix Shares Up On Rumors of Amazon Bid

Authored by Jay Baage on June 6, 2007 - 2:08pm.

After facing down Blockbuster and Wal-Mart, rumors on the street has it that the online DVD-rental company may be an acquisition target for Amazon. In a research note, Bank of America analyst Brian Pitz writes that there is speculation of a $34 a share bid "circulating in the press", according to Tech Trader Daily.

This is not the first time that rumors of an Amazon/Netflix combination have surfaced. Netflix, whose stock is still nearly 52-week high set last month (Netflix stock has zoomed 128% this year), does not come cheap. The research note states that a $34 a share price implies a $2.1 billion purchase price.

So maybe Amazon has just realized that if it can't beat Netflix, it needs to buy the company?

Joakim Baage

See How Netflix is Trading right now with DMW Stock Quotes