Amazon Rumored Suitor for Netflix
make the rounds because they can put a little life into a stock. Other
times the rumors spread because they’re true. As of this writing, there’s
no confirmation which of the two scenarios is correct but the rumor that Amazon
is looking to buy Netflix is out there nonetheless.
heavy call buying and the stock is up on renewed takeover talk, with
Amazon being mentioned specifically,” Fred Ruffy, the
senior options strategist at WhatsTrading.com, told Bloomberg.”It’s
pretty typical of speculative call buying.”
and Amazon.com are competitors in the area of movie downloads. Netflix
does most of its business, however, with rentals of DVDs through the
Morgan Securities’ analyst Michael Pachter told Bloomberg he
didn’t see Netflix as a fit with Amazon because it has distribution centers
in states across the country. This would open Amazon up to having to
pay taxes in those states.
in a whole bunch of states Amazon finds itself taxable,” said Mr. Pachter.
“It would kill their core business.”
recently stopped doing business with affiliates in a number of states
to avoid the tax issue.
Amazon or Netflix would comment on the speculation.
Questions: Do you see a fit between Amazon and Netflix? Would the tax
issue be enough to dissuade Amazon from trying to takeover Netflix?