Netflix Stock Spikes on Verizon Takeover Rumor
Reports surfaced Monday that the telephone giant is interested in bidding for the leading streamer of movies and TV shows.
Neflix shares briefly jumped more 7 percent in afternoon trading on Monday as reports surfaced that Verizon is interested in acquiring the company.
The scenario is unlikely, some analysts said, and Wall Street traders seem to agree, judging from the way the stock settled into a milder. less-than 5 percent gain after an initial spike.
Verizon clearly has something in the works, though, in regard to streaming movies and TV shows over the Internet, judging from the rumor mill of late.
Early last week, reports suggested the telco was preparing to go it alone in creating an alternative to Netflix and Hulu, but by late-week some were reporting that a deal with Redbox for such a service was imminent. Verizon CEO Lowell McAdam also revealed last week that it considered an acquisition of Hulu.
A spokesman for the telecom giant said that "Verizon does not comment on rumor or speculation."
In mid-day trading on Monday, Netflix shares were up $3.52 to $74.29.