Netflix stock price rises thanks to Verizon buyout rumors

The US stock market is getting hit with bad news today thanks to the ongoing European financial crisis, with the overall stock market down 2%. That's not the case over at Netflix however: the stock price for the streaming movie and TV services is currently soaring by as much as seven percent today. Why? It's all due to a new rumor that hit the Internet today that claims Verizon is interested in acquiring Netflix.

The rumors started today with a story on the subscription-based web site Dealreporter.com which cited unnamed sources. Details about this possible acquisition are scarce but even the hint of such a buyout was more than enough to get investors to buy some Netflix stock today. Neither Netflix nor Verizon have commented on this new rumor.

This new story comes as yet another rumor came out last week that claimed Verizon was planning to launch its own streaming video service as a rival to Netflix sometime in 2012. That news actually sent Netflix's stock price down by three percent.

A merger between the two companies might be a perfect fit, even if this rumor turns out not to be true. Netflix's content deals with Hollywood movie and TV studios combined with Verizon's national reach as a wireless carrier could actually work out well.

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21 Comments

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I really hope not... I've not had good customer service with Verizon and can't see this being any improvement for Netflix.

Verizon is a piece of crap just like AT&T. Netflix is the only tool we have to hopefully put cable companies out of business. If these ******* get a hold of it, who knows what they will do to it in hopes of turning a pretty profit. Netflix is as successful as it is due to its price. Virtually anybody can afford to use it and ever since I have signed up to Netflix I have cut my cable down to just news + sports and use Netflix for movies and the web for tv shows. I basically pay $80 a month for internet, tv and netflix combined and I am happy to no longer fund my cable company. Those people need to disappear.

vladmphoto said,
Verizon is a piece of crap just like AT&T. Netflix is the only tool we have to hopefully put cable companies out of business. If these ******* get a hold of it, who knows what they will do to it in hopes of turning a pretty profit. Netflix is as successful as it is due to its price. Virtually anybody can afford to use it and ever since I have signed up to Netflix I have cut my cable down to just news + sports and use Netflix for movies and the web for tv shows. I basically pay $80 a month for internet, tv and netflix combined and I am happy to no longer fund my cable company. Those people need to disappear.
Correction netflix WAS successful due to its price. Once they decided to jack up the prices many people either jumped ship or reduced their package plan. Netflix does not stand a snowballs chance in hell of making a come back unless they change their prices back.

Gotenks98 said,
Correction netflix WAS successful due to its price. Once they decided to jack up the prices many people either jumped ship or reduced their package plan. Netflix does not stand a snowballs chance in hell of making a come back unless they change their prices back.

That was for the DVD by mail service which I really don't care about. The whole point of Netflix is to get instant streaming content. Why would I want to wait for that 1 movie to be delivered? I never just watch one thing....Most of the people that bitched about the price hike were stuck in the past anyway. A lot of people don't like to embrace change and are complacent. I personally do not see a problem with them trying to steer people in the direction of streaming.

While I have Verizon and continue to use their service I have say I can't stand the company. They are the most reactive company in history. I am sure they will destroy the Netflix service if this goes through.

perochan said,
nice move on verizon forcing ppl to sign up unlimited data plan to stream netflix on their phones.

I thought they got rid of the unlimited plan?

smooth3006 said,
Ive never even used netflix nor will i ever.

At least you have an option too I dont even have the chance to choose...

smooth3006 said,
Ive never even used netflix nor will i ever.

Can someone show me the point of the comment? I just can seem to find it...