Amazon’s Netflix acquisition a mere rumor

While the grapevine ‘Amazon’s possible acquisition of Netflix for nearly $1.5 billion’ is hugging the media for the last few days, both the companies have denied the reports stating that it was a mere rumor and speculation. Whatever, it may be, soon after the rumor, Netflix found its shares gained $1.06 or five percent in the stock market. The online video rental company is facing strong competition from Blockbuster, iTunes, Wal-Mart and other online video rental companies despite the fact that it has amassed a collection of 80,000 titles and over 6.8 million subscribers. They have over 42 million discs and ship 1.6 million a day, on average. Therefore, the acquisition by Amazon will boost Netflix, whose stock is steadily falling in the last few months. The reason is that Amazon could provide outlets, warehouse and shipping stronghold and other directives to Netflix.