Netflix Shares Up on Amazon Acquisition Rumors

Bloomberg news is reporting that Netflix shares are up (NFLX – 6.2% as of the time of this post) on rumors that Amazon may acquire the movie rental service. Check the Bloomberg post for more details.

“There’s heavy call buying and the stock is up on renewed takeover talk, with Amazon being mentioned specifically,” said Fred Ruffy, the senior options strategist at WhatsTrading.com, a New York-based provider of options market analysis. “It’s pretty typical of speculative call buying.”

From Bloomberg, “Netflix spokesman Steve Swasey said the company doesn’t comment on rumors or speculation. Patty Smith, a spokeswoman for Seattle-based Amazon.com, didn’t immediately respond to a request for comment. ”

Amazon stock is up as well today although the market is up overall.

(side note – it’s nice to see Bloomberg listing the email addresses of their journalists at the end of the story. It would be great if all newspaper/magazine sites did this as well.)