Amazon and Netflix to Create Web Video Behemoth?

Shares of Netflix have risen as much as 7.6 percent today on rumors that Amazon might buy the DVD — and increasingly web — rental giant. At last check, shares were changing hands for $42.17 after $40. We haven’t seen any detail as to where these rumors actually originated, but at this point they’re a full-blown stock-pushing phenomenon, with more than double the normal trading volume during an overall market rally.

The combination of the two companies could offer the best of both (currently available) worlds to premium online video watchers — subscription archive content via Netflix plus newer content for purchase from Amazon. Netflix has in many ways been a lone bright spot among tech companies during the downturn.

Baron’s Eric Savitz notes this is not the first time rumors about the two companies joining forces have surfaced — but in the past any acquisition would have been more based on their offline businesses. TechCrunch has the best headline: Rumor: Amazon Wants to Rent Netflix and Never Return It.