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Apple should buy Netflix, investor says

Apple should buy Netflix, investor says

Apple should buy the streaming giant Netflix, according to one investor.

J.P. Morgan’s Samik Chatterjee reckons the streaming service is “the best strategic fit” for Apple, he wrote in a note to investors. Apple needs to acquire a company in the entertainment business, and any smaller than market leader Netflix would be a mistake, he reckons.

Apple is rumoured to be readying its own TV and film streaming service this spring. It’s already pumping billions of dollars into original content, which suggests a Netflix takeover isn’t on the cards. Nevertheless, Chatterjee reckons it makes good business sense.

“There is value to acquiring the most successful player in this space, which is hard to replicate with a smaller player in the market,” he wrote.

However, Netflix would cost a pretty penny – it has around 140 million customers around the world. Add a premium, and Apple could have to shell out $189 billion for the firm. Apple is currently sitting on around $250 billion in cash, so it could easily afford to buy Netflix.

But with a load of original shows already lined up for Apple’s own streaming service, the company is unlikely to splurge on Netflix anytime soon.

Source: CNBC

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