With NetFlix churning away customers to the Rent-It-Now-For-$1 King, RedBox, Amazon would be foolish to spend so much money on NetFlix when NetFlix can't grow its marketshare due to the elephant in the neighborhood - RedBox.
Coinstar/Redbox is way oversold right now. Even though NetFlix today and yesterday didn't even surpass its average volume of shares traded, it may continue to go up on the Amazon buyout theme. And along with NetFlix, will go CSTR, in sympathy.
Good analysis. I have call positions in both CSTR and NFLX. If you look at NFLX last three years quarterly earnings, Q2 has ALWAYS been at least double Q1. This year, Q1 was .37, which would equate to at least .74/sh Q2. Estimates right now are .50/sh(record earnings). We could be looking at a 50% beat!!
With NFLX only having 10 Million customers right now, I think there is room for both of them to grow. Good Luck to you.