Ghosts of the past just won’t go away. Electronista resurrected an old rumor about Amazon buying Netflix.
Rumors that Amazon might buy Netflix sparked brief but sharp spikes in shares of both companies yesterday. While the sources of the rumor aren’t known, talk of an acquisition was allegedly sparked by Apple’s supposed iTunes TV subscription plans and their potential impact on both companies. Amazon in particular would seek to bolster its Video On Demand service by acquiring one of its largest competitors, which thrives primarily on subscription-based movie and TV season rentals.
Why?
An acquisition would serve as a hedge for Amazon against an Apple tablet should it decide to supplement or replace the Kindle with a color model capable of video… The rumored Apple device would not only be a video hub but also an e-book alternative thanks to a 10-inch touchscreen.
What drives such rumors? It’s a slow news day. Just like it was for TechCrunch back in July:
Well here’s a hot little rumor. Netflix stock has surged today on news that it may be acquired by Amazon… Again, who knows if this is in anyway true, but the stock fluctuations don’t lie, something is up with Netflix right now.
Or not.
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