Netflix Streaming: M&A Target for Amazon?

While the chatter surrounding Netflix's (NFLX) split-up has been on the possibility of an eventual sale of Qwikster, it could actually be the company's streaming service that is acquired.

Wedbush analyst Michael Pachter said he foresees the streaming service, which will live under the Netflix banner, being sold to Amazon(AMZN).

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"In our view, Amazon has always wanted to be in the streaming business, and has been constrained from buying Netflix due to tax considerations," Pachter wrote in a note. If Amazon was to acquire Netflix's streaming business, it would immediately triple the size of its content library and become the industry leader. "Netflix streaming has current content deals that provide it with access to movie content during the premium cable TV window, and Amazon has the financial resources to secure additional streaming rights, including Starz content," Pachter wrote. "Netflix's financial flexibility is quite limited, while Amazon's is virtually unlimited." >Netflix Streams Movies No One Will WatchThe possibility of an acquisition led Pachter to upgrade Netflix to outperform from underperform.Amazon has beefed up its streaming video offerings for its Prime members, but has made no mention of offering a subscription service beyond this. -- Written by Jeanine Poggi>To contact the writer of this article, click here: Jeanine Poggi.>To follow the writer on Twitter, go to http://twitter.com/jpoggi.>To submit a news tip, send an email to: tips@thestreet.com.

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