If the deal went down, it would certainly put to rest any speculation on competition in the streaming space.
Verizon has been fairly vocal about their planned streaming service. They're not aiming to be a Netflix competitor necessarily, but the plan is to start small and work up to something big. At least, that's what they've said publicly.
According to sources close to Bloomberg, Verizon is going to be making a serious bid to purchase Netflix outright. Peter Bibb of Mediatech Capital says that we could be looking at an offer in the range of $4.6 billion to go down by April of 2012.
There's been a lot of speculation about just what the Verizon streaming service will bring to the table in terms of competition, but that might not be an issue after all.
It's also possible that the Verizon bid will start a bidding war between other possible Netflix buyers like Amazon and Google.