Potential Acquisition of Netflix (NFLX) Now Hotter than Ever!
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Shares of Netflix (Nasdaq: NFLX) are stronger Monday morning following speculation the stock might be cheap enough for a potential merger.
When making a large investment -- whether it'd be a house, automobile, or security -- individual investors generally look for the best value. Corporations are no different.
Following a 57 percent slump in Netflix's stock price since an all-time high set in July, Bloomberg considers the potential takeover of the streaming-and-DVD-delivery giant, which currently boasts a catalog stretching into the mid-20,000's. Companies named include Amazon.com (Nasdaq: AMZN), and Google (Nasdaq: GOOG).
Bloomberg suggests Amazon could pay a 50 percent premium (about $194.04 per share) and still be 26 percent below its value two weeks ago, and 36 percent below its all-time high.
The speculation isn't that far out of whack, either. Both Amazon and Google have made bids for Netflix rival Hulu, a company Netflix said it wasn't aiming to acquire.
Last week, Wedbush said Amazon would be willing to pay about $130 per share for the streaming service alone. The analyst said Netflix's re-branded DVD service -- named 'Qwikster' -- might draw $25 per share.
Amazon has been bolstering it's Amazon Prime streaming offerings, most recently entering into an agreement with CBS Corp..
Google, meanwhile, is looking to expand it's Google TV service with more content. Launched last year, the service allows consumers to stream Internet movies directly to their TV sets.
Bloomberg speculates Netflix holds $376 million in cash as of the second quarter, with current and future accounts payable of $687 million, and $2.2 billion in content commitments that didn't meet recognition requirements. Amazon has $6.36 billion in cash and cash equivalents, while Google has $39.1 billion.
Netflix is trading 5.7 percent higher Monday.
When making a large investment -- whether it'd be a house, automobile, or security -- individual investors generally look for the best value. Corporations are no different.
Following a 57 percent slump in Netflix's stock price since an all-time high set in July, Bloomberg considers the potential takeover of the streaming-and-DVD-delivery giant, which currently boasts a catalog stretching into the mid-20,000's. Companies named include Amazon.com (Nasdaq: AMZN), and Google (Nasdaq: GOOG).
Bloomberg suggests Amazon could pay a 50 percent premium (about $194.04 per share) and still be 26 percent below its value two weeks ago, and 36 percent below its all-time high.
The speculation isn't that far out of whack, either. Both Amazon and Google have made bids for Netflix rival Hulu, a company Netflix said it wasn't aiming to acquire.
Last week, Wedbush said Amazon would be willing to pay about $130 per share for the streaming service alone. The analyst said Netflix's re-branded DVD service -- named 'Qwikster' -- might draw $25 per share.
Amazon has been bolstering it's Amazon Prime streaming offerings, most recently entering into an agreement with CBS Corp..
Google, meanwhile, is looking to expand it's Google TV service with more content. Launched last year, the service allows consumers to stream Internet movies directly to their TV sets.
Bloomberg speculates Netflix holds $376 million in cash as of the second quarter, with current and future accounts payable of $687 million, and $2.2 billion in content commitments that didn't meet recognition requirements. Amazon has $6.36 billion in cash and cash equivalents, while Google has $39.1 billion.
Netflix is trading 5.7 percent higher Monday.
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