Amazon May Be Looking To Acquire Netflix

Wednesday, June 6th, 2007

J. Michael Arrington (born March 13, 1970 in Huntington Beach, California) is a serial entrepreneur and the founder of TechCrunch, a blog covering startups and technology news. Arrington attended Claremont McKenna College (BA Economics, 1992) and Stanford Law School (JD, 1995), and practiced as a corporate and securities lawyer at two law firms: O’Melveny & Myers and Wilson Sonsini Goodrich... → Learn More

Netflix stock jumped up 5.66% today on rumors that the company may be in acquisition talks with by Amazon. The funny thing about public company rumors: when they affect stock prices, it becomes AP-reported news.

Netflix has been under attack from Blockbuster and others in recent years, although membership growth has remained steady and the company is profitable. A whole new class of competitors are emerging, though, that facilitate legal movie downloads. Netflix has entered that market as well, but at a cost of $40 million per year in licensing fees. It may be time to throw in the towel.

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