
Amazon wanting Netflix: crazy? - Anon84
http://www.latimes.com/business/la-fi-amazon-netflix14-2009jul14,0,2928560.story?track=notottext
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elq
Yes. The sales tax consequence to amazon is huge. I really don't know why
these rumors keep popping up every couple of years. Perhaps it's because
Werner Vogels spoke at our weekly tech talk thing?

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mediaman
Interesting. How many states does Netflix have tax nexus in? Amazon already
has DCs in ten states.

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elq
there are 58 dvd distribution centers or hubs. most states have at least one.

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mgenzel
Am I the only one who's thinking about pricing of this deal?

Netflix market cap: $1.8 billion Amazon market cap: $35 billion

Wrt future prospects, Netflix is not dying, but is in fact at the forefront of
digital delivery. They won't sell it cheaply. It would be one very-very
expensive purchase.

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brown9-2
Netflix's current market cap is actually $2.5 billion:
<http://www.google.com/finance?q=netflix>

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mgenzel
Yikes. You've undermined my faith in the Google quick answers. I should be
more skeptical, should've looked at the source.

Still, the point stands even more firmly :) I suppose I don't think it would
be worth that much to Amazon, proportion-wise.

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redorb
I think it would be structured in a manner of 60%+ in stock and other in cash
with time limits (I.e. youtube deal) then the money paid for it would be
created in the market from the stocks soaring etc.. so paying 3b for netflix
might cost 1b cash.

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mgenzel
I haven't thought of it that way, but you're right, it's probably a good
investment. My fear is that acquisition often kills the very thing that makes
the company what it is (including its long-term positive prospects), even with
the best intentions.

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foulmouthboy
I don't think it's so crazy. A solid digital delivery system would be a great
compliment to the Amazon Cloud. Beyond digital delivery, I would think that
Amazon would be able to make some great use out of the Netflix recommendation
system.

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Aron
My conspiracy theory: Options expire on friday. Watch the stock deflate next
monday.

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leviathant
I think it's no coincidence that this news came out after Netflix awarded the
winner of their Netflix Prize for increasing the accuracy of prediction.

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Aron
It's coincidence. The contest has almost no implication to Netflix as a
business.

