Is Amazon Looking To Acquire Netflix?

Shares of Netflix stock rose five percent yesterday on indications that Amazon may be looking to acquire the popular movie rental service, according to the Memphis Business Journal.

The paper reported Netflix shares (NASDAQ: NFLX) closed at $42.19 on Monday, up 5.29 percent after trading as high as $42.40 earlier in the day.

Netflix stock has more than doubled since hitting a 52-week low of $17.90 on Oct. 27.

Seattle-based Amazon (NASDAQ: AMZN) offers its own video-on-demand service, which competes directly with Netflix’s online video streaming service.

Neither company would comment on the rumor.

On Slice of SciFi #219 we reported on how Netflix was looking to address the future of the video rental industry when their core business model of delivering DVDs through the mail begins to wane. Netflix was exploring ways to deliver more on-line content but one thing holding them back was licensing agreements with Hollywood studios. If this merger goes through, consumers could benefit from a greater selection of movies offered between Netflix and the Amazon Unbox service.