So earlier this week, rumors emerged that Verizon (NYSE:VZ, news, filings) was considering buying Netflix (NASDAQ:NFLX, news, filings). Well, actually the source was a serial Netflix-buyout speculator who said that the company might consider it, but you know how these things snowball in low news periods.
Seriously though, Netflix's stock was up 6% on this news. That means that someone really believed it. Ok, maybe it's more likely that many someones thought that someone else might really believe it. Nevertheless, the idea was simultaneously wonderfully revolutionary and utterly preposterous of course.
Netflix is the investor doghouse these days, but to sell now would be to sell at the bottom. And for Verizon to buy customers that I doubt very much they can keep since they are actively bypassing big telecom/cable already and probably wouldn't take to well to becoming Verizon video customers... especially those who are currently FIOS customers bypassing Verizon itself? Just so they can legitimize OTT video traffic and make it harder for themselves to establish bandwidth caps on their own network designed to limit its use?
Ain't gonna happen. Not today, not next year, not ever. Ok Verizon, now you can make me look like an idiot... 🙂
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