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%. Thats 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? Its 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 Netflixs 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. Netflixs content deals with Hollywood movie and TV studios combined with Verizons national reach as a wireless carrier could actually work out well.