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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.



Depends. Many shareholders may be willing to take a 30-40% price premium, particularly in this market -- and that would raise their price to $2.3bn to $2.5bn, which, if $1.8bn is a steal, is still a good deal.


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


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.


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.


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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