USA Today is running a story, "Netflix, Blockbuster in all-out DVD rental price war," suggesting that Amazon should buy Netflix:
The reason? "There are very few barriers to entry, and companies with deep pockets can get in and make some money," says Marquis Investment Research's Brian Bolan.
As a result, many analysts consider Netflix a takeover play. With a market value of $537 million, and no single shareholder controlling enough votes to block a sale, some say Netflix could be had for under $1 billion.
"If the stock price stays at $10 very long, then Amazon has to buy Netflix," says McAlpine Associates' Dennis McAlpine. "Nothing else makes sense. And if you're (Yahoo CEO) Terry Semel, you're drooling. He'd have all the (online retail) capability that Amazon has. Even (InterActiveCorp CEO) Barry Diller might want it."
I've always worried about this. What would I do with all the free time if somebody bought Netflix?