Verizon Communications Inc. (NYSE:VZ) has threatened Netflix, Inc. (NASDAQ:NFLX) with legal action i

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Nathan, co-founder and editor of RiskReversal.com and CNBC contributor, was talking to colleagues Karen Finerman, Metropolitan Capital Advisors, Inc. president and cofounder, and host Melissa Lee when he made the comment. The panel was discussing the current spat Netflix, Inc. (NASDAQ:NFLX) and Verizon Communications Inc. (NYSE:VZ) are in following an error message broadcast by the content distributor to its customers saying, The Verizon network is crowded right now. Adjusting video for smoother playback
Verizon Communications Inc. (NYSE:VZ) has threatened Netflix, Inc. (NASDAQ:NFLX) with legal action if they do not stop displaying messages like the one above to customers. In a cease and desist letter , Verizon General Counsel and Public Policy EVP Randal Milch told Netflix General Counsel David Hyman that: There is no basis for Netflix to assert that issues with respect to playback of any particular video session are attributable solely to the Verizon base Network.
Netflix s false accusations have the potential to harm the Verizon brand in the marketplace…The impression that Netflix base is falsely giving our customers is that the Verizon network is generally ‘crowded’ and troublesome. This could cause a customer to think that any attempted viewing of video, whether it be Hulu, YouTube or other sites, would yield a similarly ‘crowded’ experience, and he or she may then choose base to alter or cease their use of the Verizon network.
Verizon Communications Inc. (NYSE:VZ) said in the letter base that Netflix, Inc. (NASDAQ:NFLX) must stop sending notices like this to Verizon customers and that they should turn over, within five days, evidence substantiating the content distributor s assertion to Mr. Yuri Victor that his experience in viewing a Netflix video was solely attributable to the Verizon network. It also asked for a list of all customers on the ISP s network that received the same message as Mr. Victor.
Meanwhile, CNBC s Dan Nathan said that he has been turned around on Netflix, Inc. (NASDAQ:NFLX) adding that the stock has been recently tough to trade . In contrast, he finds Verizon base Communications Inc. (NYSE:VZ) interesting because he thinks it s a Buy. He cites Warren Buffett and other investors getting big in the name .
Shareholders of Netflix includes Arrowstreet Capital managed by Peter Rathjens, Bruce Clarke And John Campbell which owns 422,026 shares in the company. Jat Capital Management managed by John Thaler also owns 231,521 shares.
Verizon shareholders includes John Paulson s Paulson & Co which had 8.74 million shares as of the first quarter of the year. Phill Gross And Robert Atchinson s Adage Capital Management base also owns a 7.28-million share stake in the telecommunications company.
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