NEW YORK ( TheStreet) -- Netflix ( NFLX) is nixing its plan to split up the company and with it the possibility of selling itself to Amazon ( AMZN), according to analysts. The company said on Monday that it is abandoning its plan to rename its DVD-by-mail business "Qwikster." This means that both the DVD and streaming services will remain under the Netflix umbrella and Web site. Wall Street believed that the break-up of Netflix was predominantly undertaken with the intention of selling one of the two businesses. With Netflix not moving forward with the split, it seems unlikely there will be a sale. "It makes it pretty clear that Amazon is out of the picture," said Wedbush analyst Michael Pachter. "If they weren't selling to Amazon, they would have abandoned a couple of weeks ago, so I can only surmise that there was a termination of the deal. I wouldn't be surprised to see a breakup fee change hands." Pachter notes that Netflix's stock plunge and additional customer attrition caused Amazon to back away from a potential deal. "Amazon likely agreed to a purchase price well above $200 per share, with a large break-up fee in place," Pachter wrote in a note. "We believe Amazon could no longer justify a purchase price exceeding $200 per share..." While a break-up fee was not disclosed in Monday's announcement, Pachter said he expects one to be disclosed in "due course." Janney Capital Markets analyst Tony Wible and Sterne Agee analyst Arvind Bhatia agreed that a deal between the two is now unlikely. Following Netflix's announcement of a split-up, reports surfaced that Amazon may be interested in acquiring the streaming business, a market the e-commerce giant has been aggressively trying to tap. A separation of the DVD business and streaming service would have made it easier for Amazon to purchase the streaming division. The Internet retailer had been constrained from buying Netflix in the past due to tax considerations, Pachter said. This M&A chatter only escalated after Amazon unveiled its Kindle Fire earlier in the month. The tablet device will integrate Amazon's Prime Instant Video, offering a 30-day free-trial for users, leading analysts to believe Netflix's streaming service would allow Amazon to significantly increase the size of its library. -- Reported by Jeanine Poggi in New York.
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