Netflix Mum on Buyout Scuttlebutt6 Jun, 2007 By: Erik Gruenwedel
A spokesperson for online DVD rental pioneer Netflix Inc. said the service would not comment on reports that Web retailer Amazon.com could acquire it.
“There are some rumors out there given some credence by some analysts and reporters but we haven't commented as we don't as a rule,” said Netflix spokesperson Steve Swasey.
Online chatter, including a story by the Associated Press, suggested Amazon's excess currency combined with increased competition from Netflix rival Blockbuster Total Access would make strategic sense.
An analyst said Netflix mingled with Amazon's online movie service Unbox would usurp its own budding download service and create a formidable DVD rental entity to go along with its Web-based sellthrough business.
The news caused a spike in trading for both companies' stock, which prompted Jackson Securities analyst Brian Bolan to tell the AP that such stock movement “does give [the story] a bit of credibility.”