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Verizon Didn’t Make a Buyout Offer For Netflix Claims Reports

Verizon Wireless has not been discussing a possible takeover bid for US based movie streaming giant Netflix, it has been reported.

People familiar with the matter have told Bloomberg that the company has not discussed an acquisition with Netflix, putting to rest the speculations about whether Verizon has made a bid for Netflix or not.

The rumour mills had a field day when Deal Reporter, which is a trade publication, claimed that Verizon had made a bid to acquire Netflix, without mentioning anything about its sources.

The article was followed by Porter Bibb, managing partner at Mediatech Capital Partners, claiming that Verizon was looking to acquire Netlfix or one its rivals.

"I am hearing rumblings from inside Verizon that they are very serious about either Netflix or something similar," Bibb said during a Bloomberg TV program.

Following the rumours, Netflix's share price increased by 1.2 per cent to $76.13. Netflix had caused uproar when it had increased the prices of its services. The company's share price has fallen 57 per cent this year.

Verizon has been in talks with several video and movie rental service providers recently, looking to forge a content distribution deal.