J.P. Morgan: Apple should buy Netflix, but it would likely cost at least $189 billion

“Apple has a pile of nearly $250 billion in cash and one of the ways J.P. Morgan thinks the tech giant could use it is by acquiring Netflix, to boost Apple’s position as a video content creator,” Michael Sheetz writes for CNBC.
“”We think Netflix is best strategic fit on leading position in engagement level as well as original content, differentiating itself from pure aggregators of content,” J.P. Morgan analyst Samik Chatterjee said on Monday,” Sheetz writes. “‘We believe there is value to acquiring the most successful player in this space, which is hard to replicate with a smaller player in this market,’ [Chatterjee said].”
“Chatterjee notes that the purchase would likely command a sizable premium. If that premium was 20 percent, it would likely cost Apple $189 billion, the analyst speculates,” Sheetz writes. “The note from Chatterjee outlines three industries the firm thinks would be a good fit for Apple to make strategic acquisitions and names three firms the company should buy: Netflix, Activision Blizzard and Sonos.”
Read more in the full article here.
MacDailyNews Take: Nope.
Until Apple actually buys Netflix, we’ll keep saying that Apple will buy Netflix for the same reason they bought Palm. — MacDailyNews, January 31, 2016
What is unique about Netflix? A handful of TV series are not worth $40 billion. Apple is perfectly capable of taking on Netflix without having to buy them, deal with integrating their employees, etc. — MacDailyNews, May 27, 2016