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Verizon in talks to buy Netflix?

Netflix is rumoured to be sparking interest from Verizon

Mobile network Verizon is reportedly in talks with Netflix over a bid to take over the troubled video streaming giant.

Verizon has expressed an interest in entering the on-demand streaming game with reports last week claiming it may start its own rival to Netflix, Hulu and Amazon Prime.

However, after looking at Hulu, it appears the company has turned its attentions to Netflix, which has enjoyed a torrid few months following a massive backlash over a price hike earlier in the year.

Netflix's stock price rose sharply on Monday morning, as rumours of the takeover circulated, and were up 6.8 per cent by midday.


Deadline Hollywood reports that Netflix, despite its recent troubles, still has a market cap value of $4bn and its commitments to license shows and movies come to around $4.5bn.

If Verizon went ahead with the plans, it certainly wouldn't be a cheap deal.

"It would be far cheaper to buy Netflix's subscribers than it would be to buy the service," says analyst Tony Wible.

With the takeoever rumours causing things to improve for Netflix on Wall Street, company bosses will be keen to allow the rumors to grow, whether they have substance or not.

Via: CNET, Deadline Hollywood