Netflix shares jumped on Tuesday as Bloomberg reported rumours that Verizon is sizing up a bid for Netflix. Analysts apparently believe Verizon is targeting a streaming media property and Netflix is top of the list. If a bid emerges it is likely other players will also enter the field with a price tag of $4.6bn said to be in range.
Netflix shares rose 4% but later fell back as some analysts doubted the liklihood of a bid. Netflix price has recently taken a pasting as it has had to reverse decisions on splitting the company, but stuck with big retail price rises. Some observers believe the business is beginning to see a ‘ceiling’ on growth – low prices compared to cable being incompatible with obtaining premium content.