September 2011
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Day September 26, 2011

Could Netflix be looking for a suitor?

Read a great article by Larry Dignan suggesting Netflix’s recent divide and concur approach may be fueled by a different vision then what’s been suggested by Reed and their multiple announcements.

“Netflix CEO Reed Hastings may have a trick up his sleeve as he separates the streaming and DVD-by-mail businesses: a sale to Amazon.” – Larry Dignan

So…could Netflix be splitting their business so they’d be more attractive to acquisition?

If so it’s a brilliant move, the space is full of competitors and as the competition is growing so are the size of wallets ready to compete with Netflix offerings. There’s talk of a bidding war for Hulu with Google being the heavy hitter there. Currently, despite Netflix’s reputation they are a small fish among their competitors (Google, Amazon, cable companies, and content owners)…so maybe a merger is their best way to survive the coming consolidation.

 

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Netflix split to set up Amazon streaming merger?