Rumor of the day: Is Amazon looking to gobble up Netflix?

Here's a hot rumor. Shares of Netflix jumped seven percent today after rumors spread that Amazon.com was looking to buy the online movie rental service.

“There’s heavy call buying and the stock is up on renewed takeover talk, with Amazon being mentioned specifically,” Fred Ruffy, a senior options strategist at WhatsTrading.com, tells Bloomberg News. “It’s pretty typical of speculative call buying.”

Neither company is commenting. And these rumors have circulated in the past, with the last set of rumors back in 2007. Obviously, nothing came of those rumors.

Amazon.com offers its own video on demand service, which competes directly with Netflix's online video streaming service.

TechCrunch notes that the rumors are pretty thin, but points out that a combination could make for a "very formidable combination."

About Eric Engleman

ERIC ENGLEMAN is senior technology staff writer for TechFlash and the Puget Sound Business Journal, covering online retail giant Amazon.com. Engleman tracks Amazon's increasingly complex business, spanning ecommerce, Kindle, cloud computing, and more. He's been covering technology and other industries for the Business Journal since 2003.

READ FULL BIOGRAPHY

206-876-5430

@ericengleman

Recent Sponsor Posts

Technology Tax Planning – Did You Take The Deduction?

Technology companies require professional advisors who can assist in all aspects of the business. The BDO Technology Practice provides a full range of services tailored to help address the changing needs of domestic and international companies. In addition to core audit and tax services, BDO professionals can assist technology companies with:

· Revenue recognition

· Business combination accounting

· R&D tax credits

· Compensation and benefits

· Business valuations

Backed by 38 national offices and an international network in 110 countries, we have the domestic and global footprint to serve growing technology companies. Contact sphilpott@bdo.com (audit partner), mreeves@bdo.com (audit partner), psmith@bdo.com (tax partner), tzambito@bdovaluation.us.com (valuation), tfiscus@bdo.com, Director, 206.624.2020

MORE INFORMATION

Attention Web Developers

Join the Microsoft WebsiteSpark program and get software, support and visibility – at no upfront cost. You’ll benefit from fast and easy access to current Microsoft development tools, platform technology and server products including Visual Studio, Expression Studio, Silverlight, Windows Web Server 2008 and SQL Server 2008 Web.

Seattle-based Adhost is a WebsiteSpark hosting partner providing dedicated servers with free Windows Web Server 2008 and SQL Server 2008 licensing for three years to Web developers enrolled in WebsiteSpark. Servers are located in our secure data center with SAS 70 Type II certification, 24x7 technical support and 24x7 client access.

Join today.

MORE INFORMATION