Will Netflix Take the Bait?
This entry was posted in the following categories: Entertainment, News
There are few entertainment services that inspire as much cult loyalty as Netlfix does. Still, it's had to
fight off its share of competitors, both large and small alike. Now Businessweek online is reporting that our valiant Netflix may eventually be the target of a take-over bid by Amazon.com. A bit of analysis of the stock, does seem to support this as Netflix is currently trading at around 30 next years predicted earnings. While it doesn't exactly take an investment adviser to tell you that is on the high side, it doesn't necessarily mean a take over bid is eminent (only that investors think it's in Netflix's future).
Another item brought to our attention is that since Blockbuster and Walmart have largely failed to conquer Netflix's territory, Amazon may choose to invest in Netflix (rather than go it alone). If you're a Netflix-fan, this all makes for some pretty interesting reading.
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Reed Hastings has sworn he will never sell Netflix, but I do not know whether to believe him. He sold Pure Software at just the right time to avoid the tech bust.
Posted by: Becky | November 18, 2005 9:23 AM
Becky, I can't see Hastings selling Netflix anytime soon either. Blockbuster hasn't prevailed, and Walmart basically let netflix take over its side of things. On the other hand, if a company like amazon made the right offer...
Posted by: kleinias | November 18, 2005 4:51 PM