Should Apple buy Netflix for $53 billion?

“With the recent cratering of Apple’s stock price, armchair financial pundits are speculating that the company should be more aggressive in acquiring other companies to spur the company’s growth,” Jim Lynch writes for CIO. “At the top of the list of proposed companies is Netflix.”

“On the surface it might look like it’s a good idea for Apple to buy Netflix, but I think it would be madness on Tim Cook’s part if he actually did it,” Lynch writes. “Netflix simply doesn’t have enough to offer Apple to warrant paying billions and billions of dollars for it.”

“Netflix does have some good original shows such as Daredevil, Marco Polo, House of Cards and others. The company has been very busy trying to build its library of original programming, and that has proven to be a very smart move by CEO Reed Hastings,” Lynch writes. “But none of this programming warrants paying anywhere near $53 billion dollars for the company. Apple could take much less than that amount and create its own original shows.”

Read more in the full article here.

MacDailyNews Take: Again, buying a large company is a signal that your company can’t come up with their own ideas. Apple is perfectly capable of taking on Netflix without having to buy them, deal with integrating their employees, etc.

30 Comments

    1. Apple HAS prosperity. What’s wrong is the measuring stick. We’ve got gangs of cocaine psychotics demanding the future now now now when there isn’t any tech ready to become ‘the next big thing’. Maybe VR/AR this year. But I still hear it whimpering out in the tech community.

        1. Until VR/AR becomes a ‘thing’? All I know is that from past observations, what’s needed is:
          1) A price for gear that is affordable by a lot of people. The Oculus Rift ain’t it. Just the specs required for a connected PC are daunting for average users.
          2) Killer games and applications. Industry is going to find uses for at least AR. It already has in some cases. For games, I have seen plenty of VR game crap and little VR game gems. But people tell me there are and will be great, killer VR games.

          Timing? I don’t know! A friend of mine has been programming VR software for 18 years! Meanwhile, the technology flounders around year after year. Those who require it and can pay for it do so. That has nothing to do with average consumers.

    1. If Apple spent any cash, it should be for Disney. But I don’t see it happening. I am just saying it’s the best option for buying a big ticket item. That or buy ARM, once started with Apple’s help. Just saying…

      1. Apple specifically doesn’t want the companies. The return on assets and return on invested capital for the assembly operations is very low. No point wasting their own money when the assembly companies only make a few % profit margin. Tim Cook saved Apple in 1998 by shutting down Apple’s manufacturing and distribution operations and outsourcing all of that.

        The only reason to buy a component manufacturer is if Apple wanted some kind of exclusivity for a technology.

  1. Sure buy it. And buy Facebook too. Apple can create it’s own stuff, and buy stuff too, can’t it?
    One more thing….. last used for the intro of Apple Watch. Apple WON’T even SAY how much they’ve sold. Does ANYONE think the reason is because they seriously kick ass with BIG NUMBERS?
    Mac Pro… All expansion is external… well that’s NOT WHAT PRO’S want !!!!!
    Mac mini….. Yeah we know they f%@* that up !!!
    Can’t add memory, no choice foe a quad core.
    Can Apple intro some new things? Of course they CAN. They can give people some BETTER STUFF, than they’re offering now !
    Damm… that was easy.
    I’m ready to BUY STUFF NOW. Can you say Dick Tracy?

  2. It would certainly give them a real jumpstart in the original content market. They have a great library of original content. If Beats was worth what they paid for it, I don’t see why Netflix wouldn’t be worth similarly large amounts. Content lasts a long time.

  3. i agree that apple can and should invent within. But Netflix has a great library of original content and its taken time to develop it. If Apple buys netflix it can keep its brand clean from content (non family) controversy (keep the clean image) plus they instantly gain a audience and great library which is like time travel. They also should start their own channel too

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