Should Netflix or Amazon Buy Blockbuster?

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Includes: AMZN, BBI, NFLX, OUTR
by: Alacra Pulse Check Blog

By Sheena Lee

Reports are out that Blockbuster (BBI) has put itself up for sale and "a bidder could offer more than $300 million for the chain, plus assumption of various liabilities, including certain store leases,” according to The Wall Street Journal.

Netflix (NASDAQ:NFLX), Amazon (NASDAQ:AMZN) or Coinstar (NASDAQ:CSTR) should consider the video rental company, writes 24/7 Wall Street’s John Ogg: “Buying Blockbuster would generate immediate disc return locations for Netflix that users could drop movies off for nearly nothing and ultimately it could allow for Netflix to consolidate its shipping costs.”

Another possibility, according to Ogg: “What if any of these firms went into a joint-venture where they put up the capital for a super-minority or even a majority stake in the venture, but had a turnaround retail acquirer familiar with post-bankruptcy operations in the mix?”

Deal Update: The billionaire investor Carl C. Icahn has extended his offer for Dynegy (NYSE:DYN), without raising his $665 million bid. (DealBook)

Deal Update: Emergency Medical Services (NYSE:EMS) said that it has agreed to sell itself to Clayton Dubilier & Rice for $3.2 billion, including debt. The buyout firm will pay $64 a share for EMS’ Class A and Class B shares, as well as its LP exchangeable interests. (DealBook)

Deal Update: South Africa’s competition watchdog said that Wal-Mart’s (NYSE:WMT) proposed $2.4 billion bid for Massmart (OTCPK:MMRTY) should be approved. (DealBook)

Today’s Rumors: Market talk that Dell (NASDAQ:DELL) may make a strategic move by acquiring AMD and that American Electric Power (NYSE:AEP) may be interested in SunPower Corporation (SPWRA). Lenovo (OTCPK:LNVGY) may bid for Seagate (NASDAQ:STX), Chevron (NYSE:CVX) could be interested in Southwestern Energy (NYSE:SWN), Intel (NASDAQ:INTC) may bid for MIPS Technologies (NASDAQ:MIPS), and Siemens (SI) may bid for Invensys (OTC:IVNSF). (RANsquawk)

Other Deal Activity:

Korea Resources and Daewoo International, the trading company controlled by Posco (NYSE:PKX), made an initial bid for Whitehaven Coal, an Australian producer with a market value of A$3.6 billion ($3.6 billion). (Bloomberg)

Dutch bioscience company Pantarhei intends to bid for the bulk of U.S. company Merck’s (NYSE:MRK) Netherlands-based bioscience research unit Organan, the Dutch Financieele Dagblad reported. (Reuters)

EchoStar (NASDAQ:SATS) agreed to buy Hughes Communications (NASDAQ:HUGH), the satellite Internet company, for $1.3 billion, bolstering its data services offerings. (DealBook)

Sinclair Pharma and IS Pharma (NASDAQ:ISPH) announced they are in advanced discussions on a merger to create Sinclair IS Pharma plc, a fully integrated pan-European speciality pharmaceutical company. (IBTimes)

Research In Motion (RIMM) has agreed to buy professional contact manager Gist. (TechCrunch)

Haim Saban and former Walt Disney Co. (NYSE:DIS) Chief Executive Officer Michael Eisner are considering bidding for Apax Partners LLP’s HIT Entertainment. (Bloomberg)

Meridiana Fly SpA, a small Italian airline, has confirmed a local news report that it is in talks with bigger peer Alitalia about a possible partnership. (Fox Business)