Wednesday, July 25, 2007

Nostradamus Predicts.

I will be doing posts titled "Nostradamus Predicts" in regular intervals where I will gaze into my crystal ball and make some predictions about potential acquisitions and mergers. So here is the first in the series

Amazon will acquire Netflix

Why? you ask. Here's why

a. Netflix is synonymous with dvd rentals.
b. Netflix fits into the E-Commerce hub theme Amazon wants to dominate
c. Netflix is in trouble right now so Amazon may get a good bargain
d. Ultimately it is the Netflix user base that Amazon would be frothing to acquire.

Clearly there is downside on account of the Blockbuster model proving to be more successful but who better than Amazon to take on this challenge.

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