My two cents

Could Amazon buy Netflix on the cheap?

Not many could have predicted Netflix’ rise and fall from internet-darling status with all these twists and turns. New analysis from Wedbush Securities positions Netflix as a “cheap buy” for competitors like Amazon and Google. Particularly following a day of deal making by both Amazon (with 20th Century Fox) and Netflix (with Dreamworks), the idea is compelling. Netflix, having lost significant value since the well known price upheavals in early July could bring both technology and an existing video library to Amazon. For Amazon, the cost could be cheaper than building something similar, and they have to the cash to do it.

If the stock price continues to chip away, the alternatives for Netflix are slim without significant goodwill from their subscribers, and even the recent tie-up with Facebook’s forthcoming streaming service may not create enough positive momentum … but you never know …

8 months ago
  1. nasnyc posted this