Remember those Netflix takeover rumors we told you about the other day? It seems that Susquehanna Financial Group analyst Marianne Wolk has added a little more fuel to that fire, stating that Netflix will “likely be acquired for its strengths in the rapidly growing digital video market”.

StreetInsider is reporting that Susquehanna is bullish on Netflix for the following reasons:

95%+ customer retention for DVD subscription service, which drives strong earnings and free cash flows.

Netflix’s digital video offering is superior to most alternatives. See a multi-year window of opportunity for Netflix to build a larger, more significant presence in the digital video market.

Netflix has a solid track record of execution and we expect to see ongoing upside to forecasts

Netflix will likely be acquired for its strengths in the rapidly growing digital video market.

Susquehanna analyst Wolk has named several likely “big name” bidders for Netflix, with Amazon.com as the most probable. Other likely candidates mentioned by Wolk include Blockbuster, Walmart, Google, Microsoft, Apple and Liberty Media. Wolk believes the chance that Netflix will be acquired by one of the companies mentioned above is 50%. She feels that “shares of Netflix are down sharply from its 52-week high due to the market conditions and analysts downgrades creating a potential buying opportunity”.

Give us your take on the increasing Netflix takeover buzz in the comments, Insiders.

[via StreetInsider here and here]