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This article was published on December 12, 2011

Verizon rumored to be considering purchase of Netflix


Verizon rumored to be considering purchase of Netflix

Verizon is currently considering plans to purchase video streaming site Netflix, reports Deadline. The deal, which was rumored on the industry site DealReporter, is unconfirmed but has some steam behind it.

Verizon CEO Lowell McAdam has said that the company was eyeballing Hulu but didn’t end up bidding on it. He went on to say that it was still interested in getting into the video streaming game. This would be an ideal way to do it.

The value of Netflix, some $4B augmented by $4.5B in streaming rights, is mentioned as one of the biggest drawbacks to the deal.

The possibility that the deal rumors are being leveraged to indicate that the bottom of the Netflix stock price, which has plummeted on recent missteps by the once golden company, has reached bottom. These reports have caused Netflix’ shares to spike upwards about 6.8%.

 

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