Should Apple absorb Netflix?

“Some people associated with Apple previously have suggested that is has Netflix in its crosshairs,” Bidness Etc. writes. “This acquisition could help Apple maintain growth, especially since reports suggest that Apple might be interested in rolling out its own TV subscription service.”

“Rumors regarding Apple’s search for a media company emerged when a recent Financial Times report said Apple executive Eddy Cue, who heads iTunes, iCloud and Apple Music, had proposed the idea of acquiring Time Warner in a meeting last year,” Bidness Etc. writes. “However, investment bankers linked with Apple told the Financial Times it would be more interested in acquiring a streaming company like Netflix, rather than a pure content player.”

“Netflix trades at almost $92 per share, which is well below its 52-week high of $133. The stock has a P/E ratio of 338 and 7.4X sales. At present, Netflix’s market capitalization stands at $39 billion, while Apple’s current cash pile is $220 billion,” Bidness Etc. writes. “That number suggests Apple can afford to be generous with its investments in several directions, and that acquiring Netflix will not be a debacle.”

Much more in the full article here.

MacDailyNews Take: As we wrote back in May:

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.

Until Apple actually buys Netflix, we’ll keep saying that Apple will buy Netflix for the same reason they bought Palm.

Apple to buy Netflix? – May 27, 2016
Should Apple buy Netflix for $53 billion? – May 10, 2016
Why Apple should buy Netflix – January 7, 2016
Apple’s move into content creation could devastate Netflix and Amazon – September 1, 2015
Why Apple should buy Netflix – April 21, 2015
Why Apple should buy Netflix – March 26, 2014
Jim Cramer: Apple should buy Twitter or Netflix to spur growth – February 7, 2013
The Netflix buyout battle: Apple vs. Time Warner – April 10, 2012


  1. Anyone who has ever suffered through iTunes (and iCloud) on Windows or Apple Music on Android should not want Apple to buy Netflix, Hulu, Amazon, Sling or anything else that would force Apple to support more than their own hardware/software platform. Do you have any idea how many platforms the streaming services have to support? Not just the main PC/mobile ones like Microsoft, iOS, OS X and Android but all browsers as well as proprietary/obscure ones like Roku, streaming DVD/Blu-Ray players and smart TVs.

    Unless Apple wants to use them to totally transform their corporate culture and approach to technology, they should stay far, far away.

  2. Funny. When ever som tech company is doing well, everyone suggest that Apple should buy it. That’s not Apple MO. If you consider the past acquisitions, Apple invested only in unique companies, yea and that includes Beats……

  3. … and, knowing how much the content providers seem to hate Apple, I can see them refusing to renew content contracts when they expire, and hooking up with someone else. I guess it depends on whether they hate Apple more than they love whatever money they are making off Netflix.

    I long for the day that Apple could offer something that looks like Hulu Plus and Netflix (as far as content offered) – in Canada, please. I hate the unreliable PVRs that virtual monopolies in Canada force you to use – to record pre-recorded shows because you don’t want to build your life around the times they broadcast it. I wonder how many years before children will have no idea what broadcasting is (except for live events) – like VCRs, LPs, etc…

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