Netflix Could be Aquired by Amazon?

Hmm it made the stock shoot up but it would make sense for both companies to join forces.

But combined, the two would offer a very formidable combination. The reason is that while Netflix mostly offers older titles through its streaming service, Amazon offers all the new movies. Netflix of course sends out new movies via DVD by mail, but that service will one day go away in favor of streaming or downloading.

Another thing that could be a result of the pairing is that they can create synergies in their distribution networks if they consolidate with one another. That means you might be able to buy stuff on Amazon from an Xbox360 (maybe even using Microsoft points) or maybe from kiosks if Netflix decides to directly compete with Redbox. Also consolidating their fulfillment centers might make for millions in savings on shipping as well.

Blockbuster Refinancing its Debt and is Not Bankrupt

It seems Blockbuster is just looking for a way to finance some debt coming due in August and not closing up shop as reported earlier. Look for a steep drop off in Netflix stocks tomorrow. Maybe Blockbuster should approach the Feds about a bailout?

The video rental chain has said that it has the cash to fund itself through 2009 if necessary, but is trying to secure refinancing to make a debt payment due in August. Shares of Blockbuster had dropped 77% on Tuesday after a published report said it had hired Kirkland & Ellis to help it consider a variety of restructuring options, including a possible bankruptcy filing.

Blockbuster Could Go Bankrupt?

At least that is what the rumor is because they have hired advisory firm Kirkland & Ellis LLP to go over its options.

Bloomberg reported Tuesday on its Web site, citing a person familiar with the situation. Kirkland & Ellis LLP was asked to evaluate restructuring options for the movie rental company, which may include a "pre-packaged" or "pre-arranged bankruptcy," the news agency said. Blockbuster shares were down 76% to 23 cents before trading was halted.

It looks like Netflix may have won the video rental war at long last. Netflix stock is booming today because of it as well.