After facing down Blockbuster and Wal-Mart, rumors on the street has it that the online DVD-rental company may be an acquisition target for Amazon. In a research note, Bank of America analyst Brian Pitz writes that there is speculation of a $34 a share bid "circulating in the press", according to Tech Trader Daily.

This is not the first time that rumors of an Amazon/Netflix combination have surfaced. Netflix, whose stock is still nearly 52-week high set last month (Netflix stock has zoomed 128% this year), does not come cheap. The research note states that a $34 a share price implies a $2.1 billion purchase price.

So maybe Amazon has just realized that if it can't beat Netflix, it needs to buy the company?