Citi: Apple 40% likely to acquire Netflix, 5% likely to acquire Tesla

“The research arm of the investment bank Citi released a report this morning with seven potential merger and acquisition targets for Apple. Tops on the list is Neflix, at an assessed 40% likelihood, Citi says,” John Koetsier reports for Forbes. “Elon Musk’s Tesla, on the other hand, is only 5% likely.”

“The full list of acquisition targets includes three media firms, three game developers, and, of course, one car manufacturer,” Koetsier reports. “Disney and Hulu are the media firms joining Netflix, while Activision, Electronic Arts, and Take-Two are the gaming companies.”

Ranked in order of likelihood:
• Netflix: 40%
• Disney: 25%
• Electronic Arts: 10%
• Activision: 10%
• Take-Two: 10%
• Tesla: 5%
• Hulu: 0%

Read more in the full article here.

MacDailyNews Take: Just because Apple could buy Netflix, doesn’t mean they should. However, Apple should definitely consider an upgrade in executive talent, by all means. They don’t have to buy Netflix to accomplish that. They just need to hire somebody who can negotiate deals as PlayStation Vue, SlingTV, DirectTV, Hulu, and YouTube TV executives have done already.

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. — MacDailyNews, May 27, 2016

SEE ALSO:
Apple’s Eddy Cue alienated cable providers and networks with an assertive negotiating style – report – July 28, 2016

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Why Apple should buy Netflix or something – February 22, 2017
Apple’s arrogance said to contribute to struggles to make big deals – February 15, 2017
Apple hires Amazon’s Fire TV head to run Apple TV business – February 8, 2017
Why Apple should buy Disney – January 26, 2017
Apple’s new TV app shows just how painfully behind Apple is – December 14, 2016
Apple approached Time Warner about possible merger before AT&T talks – October 21, 2016
Apple’s Eddy Cue: Nope, we don’t want to be Netflix – October 20, 2016
Google signs up CBS for planned web TV service to debut in early 2017; close to deal with 21st Century Fox – October 20, 2016
Bernstein: Apple buying Netflix would be a waste of $50 billion – October 5, 2016
A chance for an Apple buyout offer as Netflix stumbles – July 19, 2016
Here comes á la carte programming – without Apple – July 13, 2016
Should Apple absorb Netflix? – July 11, 2016
Apple to buy Netflix? – May 27, 2016
Should Apple buy Netflix for $53 billion? – May 10, 2016
Apple declines to place bid on NFL Thursday Night Football – March 3, 2016
Why Apple should buy Netflix – January 7, 2016
Apple TV 4 is a beta product and, if you bought one, you’re an unpaid beta tester – November 5, 2015
Apple made ‘audacious bid’ for Top Gear trio of Clarkson, Hammond and May, but lost out to Bezos’ 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

28 Comments

  1. No way a Netflix purchase would work out. Any new Apple/Netflix original shows would be devoid of anything that’s not “family-friendly” (in the puritanical American sense, where guns and violence are more acceptable than nudity).

    And who knows what would happen to the more racy/violent/etc content Netflix currently licenses… Apple might have them in the iTunes store to rent or buy now, but that’s quite different making them available as part of a buffet model.

  2. iBM is the one that Apple will buy.Apple does not need amuzment parks or video delivery system. They already get 30% from those and that is called services. Only IBM and deliver something for the Apple. Apple does not need to own other companies. It is better to do things inhouse.

    1. IBM has been dying slowing for decades for various reasons (including Apple’s marketing the first true popular productivity personal computer, MS’s stabbing them in the back with MS-DOS and the rise of the IBM PC compatibles once a stable BIOS was engineered and other reasons before and since.

      There are reasons to doubt it can survive at anything like its current employee count. Pass.

      1. apple had nothing to do with IBM’s demise.. that was all Compaq. But you’ve probably never heard of them… they are currently the 2nd largest computer maker in the world, behind Lenovo.. And guess what Lenovo is… IBM’s old computer wing that they dumped.

  3. I also don’t see Tesla agreeing to be bought by Apple. Elon Musk has some specific visions for electric and solar (as part of separate but related companies), and he won’t want to give up control of one (Tesla) which would jeopardize the success of the other (Solar City).

    Might as well entertain the notion of Apple buying Samsung’s manufacturing/fabrication subsidiary.

      1. Their manufacturing/fabrication subsidiary is one of the best in the world for critical components that Apple needs, otherwise Apple would’ve dumped them entirely years ago. Buying the subsidiary would not diminish Apple’s brand in the slightest except in the eyes of Apple fanbois (the extremists, I mean; Apple *fans*, which I consider myself to be, have more balanced views and aren’t afraid to criticize Apple for their mistakes).

        The point is, though, that Samsung would not let it be sold off since Samsung (the actual corporate entity that we love to hate) depends too much on it to risk Apple shutting out them and other competitors. The sale probably wouldn’t even make it past US or South Korean antitrust regulations

    1. I agree, Mossman. Tesla is too big for Apple to take on and they don’t need a buyer right now. If Elon wasn’t spread so thin as a CEO, I’d say I’ve always wanted him to take over from Steve and keep Tim on doing that supply chain stuff he used to be so good at. 😉

  4. ~

    MDM, I think you’re totally missing the greatness of Netflix. Is there risk? Of COURSE! But the upside is HUGE, fun and exciting. Netflix is on the verge of becoming the future of all network TV, GLOBALLY!

    Repeat after me: “It’s not about the movies, it’s about TV. It’s not about the movies, it’s about TV. It’s not about the movies, it’s about TV….”

    The market will sort out whether or not NFLX is overvalued, but stocks trade based on FUTURE earnings and potential. In that light, Amazon, Netflix and Tesla (I’m not a big fan of FaceBook figuring profit out) are exciting places to be. Risk is everywhere, but Netflix and Tesla are truly interesting, compelling, disruptive companies. Apple used to be disruptive too and now they’re looking like a great longterm, more predicatable investment.

    Full Disclosure: I own all of these stocks I’ve praised here (and a lot of AAPL) and am excited about all of them in the long run.

    But really, MDM. It’s okay to like more than one company out there. Everyone besides Apple is not “bad” just because they’re not Apple.

    I’m hoping for some deeper editorial reflection on your part than this 2-dimensional bashing of Netflix. As we’re learning, Apple is losing interest (or is not competent) in areas where we need services and hardware. We lost printers a long time ago so I’ve spent a lot of money with HP over the years. We appear to be losing monitors now (Hello Samsung) and wireless routers, and possibly even the MacPro. We all could come up with a longer list like this if needed.

    But, in the meantime, I’m looking forward to something more than knee-jerk criticism, especially if you’re going to keep repeatedly quoting yourself from months and years past.

    I think you’re missing the point here about Netflix.

    It’s the only place where you can get reliable, original, well written, acted and directed QUALITY TV series. I’m shocked how little I TiVo network TV anymore. The stand up on Netflix has been excellent too. And you remember that it’s global, right? So we’re tapping into incredible global talent from the UK, Australia and other English speaking countries.

    The future of the music industry is global. The future of the TV is global. Netflix is waaaaay ahead of Amazon and HBO, its nearest competitors.

    Now go watch the first season of Daredevil and tell me that’s not some of the best Marvel TV ever produced. Vincent D’Onofrio should have gotten every reward possible for his deep, scary, empathic portrayal of KingPin.

    C’mon, MDN. You know you wanna kiss and make up with Netflix if you haven’t already done so. Right?… 😉

    ~~~

  5. 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.

    Except they’re not. Apple is not perfectly capable of this. Neither are they moderately capable of this. In fact, they are not capable of this. Thus 40% of acquisition.

    1. Excellent point, Higo. I totally agree. Apple doesn’t know how to do this at all, and AppleTV is an excellent example of that failure.

      That being said, I’m not sure I want Apple to buy Netflix. TiVo, definitely (because I still love mine), but Netflix is a more a “no” than a “yes” for me.

      But I agree. Apple is not showing any sign that they could do this on their own without an acquisition.

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