Is Best Buy Buying Netflix?

05/25/2008 05:12 am ET | Updated May 25, 2011
  • Henry Blodget Alley Insider

A reader says there was chatter to that effect this afternoon, as Netflix (NFLX) pushed 6% higher on high volume.

Would this make sense? Only if Best Buy (BBY) has been persuaded that the Blockbuster (BBI) - Circuit City (CCI) deal makes sense, which we certainly haven't.

On the "why not?" side, a Best Buy - Netflix combination would of course be vastly more powerful than a Blockbuster - Circuit City combination---because it would be two No. 1's vs. two No. 2's and because Netflix is stronger than Blockbuster in the only business that could provide real synergy: mail-order subscriptions and digital downloads.

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