“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.