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Good outline Mike. A lot going on.

How about this?

Netflix buys BB Online for 200M$ (which is 200$ per customer or roughly the valuation Netflix receives), and strikes a deal to offer store coupons for which they pay Blockbuster 2$ per when redeemed. Netflix then offers 2 coupons per month and hikes the price back to 20$ for NEW customers and locks in the old ones at 18$.

Add 200M$ to the 150M$ cash on hand for Blockbuster and you got Icahn's desired dividend.

I am mostly jesting here. ;)


NFLX up 20% in last two days of trading because of this news! Go NFLX!


Blockbuster and Netflix should just merge. This would please the stockholders of both companies.


It wouldn't please me. That's more or less analogous to Microsoft merging with Apple -- not all all good for either.

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