Verizon's Denies Netflix Takeover Talk, Might Be Interested in Redbox
Shares of Netflix rose by more than 6 percent on Monday after a trade publication reported Verizon was kicking around the idea of acquiring the streaming service. The publication -- Deal Reporter -- didn't reveal its sources, but was very clear about Verizon wanting to get into the streaming sector, and that buying Netflix was a very real possibility. But is it true?
That depends on who you ask. Bloomberg today countered the original story by apparently confirming with "two people with knowledge of the situation" that Verizon hasn't talked about making a move to acquire Netflix and that the two companies haven't discussed a transaction of any kind.
Verizon and/or Netflix could dispel the rumor outright by going on record with a statement, but both companies have so far refused to do so. Earlier in the week, it was also reported that Verizon plans to launch a standalone service to allow customers to stream movies and TV shows over the Web, and so it appears Verizon is at least interested in streaming media, whether it does so on its own or scoops up Netflix.
If all that weren't enough, there are also reports of Verizon meeting with Redbox about a possible content-distribution plan.
"Verizon's not interested in Netflix, they see Redbox as a much better fit," Sam Greenholtz, an analyst with Telecom Pragmatics in Westminster, Maryland, told Bloomberg.
While it's uncertain exactly what Verizon is up to, it's pretty clear the wireless carrier wants to extends its reach.
That depends on who you ask. Bloomberg today countered the original story by apparently confirming with "two people with knowledge of the situation" that Verizon hasn't talked about making a move to acquire Netflix and that the two companies haven't discussed a transaction of any kind.
Verizon and/or Netflix could dispel the rumor outright by going on record with a statement, but both companies have so far refused to do so. Earlier in the week, it was also reported that Verizon plans to launch a standalone service to allow customers to stream movies and TV shows over the Web, and so it appears Verizon is at least interested in streaming media, whether it does so on its own or scoops up Netflix.
If all that weren't enough, there are also reports of Verizon meeting with Redbox about a possible content-distribution plan.
"Verizon's not interested in Netflix, they see Redbox as a much better fit," Sam Greenholtz, an analyst with Telecom Pragmatics in Westminster, Maryland, told Bloomberg.
While it's uncertain exactly what Verizon is up to, it's pretty clear the wireless carrier wants to extends its reach.
