Netflix Takeover Rumors Again

Update: Kara Swisher from AllThingsD also says that Microsoft would be a better suitor, and notes that Amazon would face a sales tax problem due to Netflix's 58 shipping centers, located in most states.

Barron's is reporting that the little lift Netflix stock got this morning was due to yet another Netflix takeover rumor. 

About two years ago, there were a round of rumors that the company was going to be acquired by Amazon.com (AMZN), and there is some bulletin board chatter this morning spouting the same theory. Of course, nothing actually happened two years ago. And there isn’t any real evidence that anything is happening this time, either. But we’ll see. Stay tuned.

It makes sense for Amazon to be interested in Netflix -- it's a perfect compliment to the Unbox service and DVD/Blu-ray business. Microsoft could use Netflix to boost the Zune & Xbox 360, and Netflix CEO Reed Hastings is on the Microsoft board. If Netflix is really in play, it would make sense for them to talk to a couple of companies.

Who do you think should buy Netflix?

Comments

[Discostu]

Nobody should buy them, they'd just screw it up.

[Chris O.]

Exactly! No one.

[andyg8180]

Let's take someones vision of a good company, gut it, add our corporate S to the mix, and sell it off!!

I vote no one... But I think Amazon would be the least likely to screw up the current vision of the Netflix platform... M$, i love you and all, but you guys would screw it up! Watch Instant would be chock full of ads if it were up to them...

[Fred]

Don't forget you take out a loan to finance the eal then raise the fees to pay the interest off.

[CMHDave]

I would hope if someone were looking into buying it, it would be someone without a vested interest in a particular operating system/hardware/etc.

In the case of Microsoft, forget ever getting Netflix streaming on a Wii or PS3. Forget support for Mac or Linux. It would be straight up MS. Which from a business standpoint who could blame them?

No I think the long term feasibility of streaming is best served in the hands of someone that doesn't have something to gain by promoting one avenue of delivery over another.

[Sharon]

I like Netflix just the way it is - Anyone else gets their corporate hands on in they would destroy what we all like about the Netflix service

[FLONISOTF]

Not Amazon. If they bought netflix's DCs every state in the union would have another reason to discuss taxes with amazon. States dying for any excuse to go after them.

[Ann_from _Brooklyn]

I don't care who buys Netflix. What do I care who owns it? As long as I get my DVD's on time and can stream movies and tv shows relatively well, the devil himself could own it.

[JRAE]

I imagine Microsoft would be the faster company to push Netflix's evolution into an online giant- and it would be a big coup for them to get it compared to Google having YouTube (NF is profitable last time I heard). Personally I quite like the idea of getting faster implementation of the online features, so I would go for MS. They'd be unlikely to stop support for other products (i.e. Macs) because they'd only lose sales from it.

Amazon on the other hand are already the largest holders in LoveFilm over here in the UK and do nothing with it, the online streaming is terrible and I can't see how anybody would benefit except for Amazon staying relevant for longer. That said I love Amazon and my Prime account, so I wouldn't mind either way.

[Katie Jane]

Please no one! Microsoft would just screw with it until no one wants to use it anymore, and then where would we be at??? I could see maybe partnering with someone like Amazon, but a complete takeover? That would mean jacked up prices, slower movie shipments, and eventually the complete collapse of what we have come to know and love--Netflix.

[Fiver]

Amazon buying Netflix goes against their business model. If you take a look at the sales tax laws and how how the two companies distribute product, it makes no sense at all. It does howevet, give both stocks a nice 'pop' on a day when markets are on the rise...

[Seth]

I think it's possible that Reed would sell, but I can't see much advantage to Netflix itself.

And as others mentioned above, there are few (if any) companies that will not screw up Netflix after an acquisition.

[Craig]

I think anyone should buy Netflix who's able to understand that a single textbox Title search and a Browse feature is not the same thing as a SEARCH. Oh wait, I guess all of those people already own every other web company on the planet!

[Edward R Murrow]

A sale of Netflix would make sense. In a world of streaming, Netflix has no value add. Netflix owns no content, neither do they manufacture a hardware device to 'lock' customers into a Netflix solution.

The value add that Netflix does have, however is a huge library of DVD's. As the DVD goes, so goes Netflix. Just my opinion...

[drita]

I agree that if someone else were to acquire it, they would just screw it up and no one would want to use it anymore. Why even think about messing up a good thing?

[Josh]

Don't think it should be sold, but if sold to anyone, I would hope it to be Amazon.

[mikeflood]

I like it like it is.
If Mickeysoft gets it they would put commercials in the movies and streaming would crash every time a flick faded to black.
If Amazon got it there would be an immediate price increase

[thattherepaul]

Who should buy Netflix? Nobody.

[banter]

LEAVE IT ALONE!

Whoever takes it over will ruin a great thing. Especially if Microsoft takes over.

[Del]

If Amazon buys them out and drops WI for their PPV, I will cancel my account and use Redbox.

[Luis]

To those complaining about Microsoft ruining streaming, Netflix uses Silverlight which is a Microsoft product so I don't see how streaming would change although the addition of ads is possible.

I love Amazon but I'm not sure it would make sense for them to get Netflix if they already have their unbox service, unless they combine them someway.

As for the "as the DVD goes, so goes Netflix" uh no. It's called Blu-ray and once that goes its called online downloads/streaming, Netflix can adapt as times change.

[banter]

close tag! close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!close tag!

[Ethan]

BlockBuster offers DVD & Video-game rental. NetFlix should merge with GameStop or some other Video Game Rental service to be able to offer that to subscribers also.... 2 DVDs out, 1 video, 1 game. Maybe even offer download-n-play, which counts as 1 DVD until the game is deleted or the next download (which over-writes).

[close tag]

close tag?

[me]

and this is close.