Rumor: Netflix Shares Up On Amazon.com Buyout Possibility
Shares of Netflix jumped Wednesday amid a rumor the company could be acquired by Web retailer Amazon.com Inc. Netflix shares gained $1.06, or 5 percent, to $22.45 in afternoon trading.
Jackson Securities analyst Brian Bolan said he has heard buyout speculation from industry contacts, and noted it would make sense for Amazon to look at Netflix now, in part because Amazon's stock has been trading higher lately.
"They've got excess currency, if you will. Netflix, on the other hand, has been facing stiff competition from Blockbuster and everyone else, so they've seen their stock go lower," he said.
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