Last week we brought you the news that it looked like Verizon might be teaming up with Redbox to launch a stand-alone video streaming service. The thinking was that this might be a plan for VZW to try to take on Netflix in a battle of streaming video services, and it has been rumored for quite some time that Redbox wants to roll one of those out, and with the help of Verizon’s vast coffers that would make it fairly easy to do. It now appears, however, that someone must have finally pulled out an abacus and pointed out to Verizon just how much money they have and how low the Netflix market cap value is. After some simple math, it seems the smarter thing might be to just buy Netflix instead of trying to compete with it.
Subscription-based service DealReporter, which specializes in reporting on acquisitions, is claiming that Verizon and Netflix are indeed talking with one another, and the mere whiff of this rumor is causing the video company’s stock to get a much needed breath of new life in it. How serious the talks are, if they are even really happening, is anyone’s guess. We’re not quite sure why Verizon wants into the bigger world of streaming video this badly, but apparently they see a definite future in it.
And, hey, the bonus is no one would have to change company colors!
What do you think about the possibility of Verizon wanting to acquire Netflix?
[via The Street]