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Verizon may be 'very serious' about buying Netflix

updated 07:40 pm EST, Tue December 13, 2011

Verizon may try to take over Netflix

A claim from Mediatech Capital managing partner Porter Bibb late Tuesday maintained that Verizon was "very serious" about buying Netflix. Fueling earlier rumors, he explained to Bloomberg that sources inside Verizon wanted either Netflix or "something similar." Bidding was underway with unnamed competitors that Bibb heard could see a sale before Easter for an estimated $4.6 billion.

Neither Netflix nor Verizon has commented on the prospects. On December 7, CEO Lowell McAdam provided support to rumors of some form of Internet video service by saying that he wanted the company to move beyond FiOS TV into streaming. Most believe it would be a way to give Verizon DSL subscribers or even non-Verizon customers access to movies and TV shows on a Verizon service.

Whether or not Netflix would be receptive is uncertain, if not doubtful. Verizon allegedly belives that it's unfair Netflix and others don't share their profits despite the practice being rare anywhere else on the Internet. Verizon wouldn't necessarily get any more profit if Netflix was just an internal division.

Other concerns would include competitive issues. Content providers might be reluctant to see the largest US paid Internet video service under the control of a provider that might try to limit who can access it. It could also raise anti-competitive problems by trying to steer users to much costlier FiOS TV.



By Electronista Staff
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Comments

  1. juraiprince

    Fresh-Faced Recruit

    Joined: Feb 2006

    +6

    Oh, I am...

    ...so NOT liking this! I'm both a Netflix and Fios subscriber, and this most certainly would not be a good thing!

  1. qazwart

    Fresh-Faced Recruit

    Joined: Apr 2001

    +1

    What About Dish?

    Dish just bought Blockbuster. I wonder if Dish would be interested in Netflix.

    The question is how much Netflix stock is out there for play. Netflix is right now very low. It has gone down from $300/share to just above $70/share.

  1. byzantium

    Fresh-Faced Recruit

    Joined: Nov 2004

    -3

    Write your subject line here...

    Write your post here...

  1. aepxc

    Fresh-Faced Recruit

    Joined: Nov 2011

    +2

    I really hope not

    The more our communication providers move away from being utility-like dumb pipes, the more innovation will be stifled, and the more consumers would suffer from oligopolistic abuse. Did we already forget the lessons we learnt from Ma Bell?

  1. testudo

    Forum Regular

    Joined: Aug 2001

    0

    Re: I really hope not

    Except you don't want them to be just 'dumb pipes'. You want them to be 'really cheap, unlimited bandwidth and usage dumb pipes'.

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