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Brier Dudley's blog

Brier Dudley offers a critical look at technology and business issues affecting the Northwest.

July 13, 2009 at 2:14 PM

Amazon.com buying Netflix? Some traders think so …

It’s still a wild rumor, but some are speculating that Amazon.com may buy Netflix.

Netflix closed up 5 percent at $42.19 and options trading soared on the stock, according to a Bloomberg report. AMZN closed up 5 percent to $81.47.

One analyst quoted in the story said it’s unlikely, because Netflix distribution centers in different states could complicate Amazon’s efforts to avoid sales taxes in different regions.

But the sales tax games are probably short term and Amazon probably overlaps in some of those states.

Long term, Netflix would give Amazon’s digital download business a huge presence that it may never obtain otherwise.

Netflix has made deals with all sorts of TV, console and set-top box manufacturers, putting what are basically mini-storefronts in living rooms across the country. Amazon is doing the same thing with companies like TiVo but Netflix is way ahead.

Maybe the deal would expedite the development of Kindles that support streaming video …

Comments | More in | Topics: amazon, Amazon.com, netflix

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