Analyst says there is a 40% chance that Apple buys Netflix

Analyst says there is a 40% chance that Apple buys Netflix
Sitting on a cash pile of $256 billion might make Apple CEO Tim Cook uneasy. Apple shareholders are going to want to see that cash hoard reduced and the money put to work. Apple has already spent $211.2 billion out of an authorized $250 billion share buyback program. It has added another $50 billion to the program, hiking the amount to $300 billion. Last quarter, Apple returned over $10 billion to Apple investors in the form of a $3.2 billion dividend and $7 billion in stock repurchases.

Some big time fund managers want Apple to use its cash to make a significant acquisition. In a note sent to clients today titled "Addressing the Problem of Too Much Cash," an analyst at Citibank named Jim Suva said that a cut to 10% in the repatriation tax would give Apple the fire power to make a large purchase. The one-time tax break would allow Apple to ship back to the states the 90% of its cash that is held overseas, without forcing the company to pay an onerous tax bill.

In the same memo, Suva made a list of likely targets for Cupertino. He weighed things like the strategic fit and global scale of each takeover target, and the impact buying a particular company would have on Apple's shares. At the end of his computations, the analyst was left with seven strategic targets for Apple. At the top of the list is video streamer Netflix. Suva computes that there is a 40% chance that Apple will purchase the company. Next is Disney. The analyst figures that there is a one-in-four chance (25%) that Apple will acquire the entertainment giant.

Other names listed in the note include Hulu, Activision Blizzard, Electronic Arts, Take-Two Interactive and Tesla. According to Suva, these companies all have a 10% chance or less of being bought out by Apple. In his note, Suva says that the best thing Apple can do with its cash is to take a third of it and spend it on a large acquisition. The rest of the money can be used to expand its buy back program.

source: TheFly, MarketRealist via SeekingAlpha
 

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75 Comments

1. QWIKSTRIKE

Posts: 1459; Member since: Mar 09, 2010

I I hope... Not

2. QWIKSTRIKE

Posts: 1459; Member since: Mar 09, 2010

As a free open system I stream Netflix whenever wherever and on whatever device that I chose.

40. Finalflash

Posts: 4063; Member since: Jul 23, 2013

It won't happen, this is just more BS being shoveled towards jittery investors after that last earnings report. Essentially, they realize Apple is all out of ideas and when a company runs out of meaningful advancements internally, they are expected to make acquisitions to fill the void. At this point, Apple has made no indications that they are buying anything and this is just more BS to keep the mob calm.

54. Unordinary unregistered

Thats apples philosophy when it comes to TV

49. lyndon420

Posts: 6789; Member since: Jul 11, 2012

Agreed. I live on Netflix...highly unlikely apple will make it better.

50. janis

Posts: 397; Member since: Mar 10, 2014

firstly they better come up with proper phone this year.

55. Unordinary unregistered

They sold 50 million previous quarter, something seems proper about that.

58. marorun

Posts: 5029; Member since: Mar 30, 2015

Yep marketing and sheeple helped lol.

75. Unordinary unregistered

Every company wishes they have the skill to design and market products to gain a group of people who keep coming back for more, as well as Apple.That's what having a good product and experience is.

87. sgodsell

Posts: 7365; Member since: Mar 16, 2013

Unordinary are you truly ignorant? The iPhone 7, is the iPhone 6s, is iPhone 6. Sure there have been updated each year, but nothing truly revolutionary‚Äč or really significant. Also the iPhone 7 is the highest priced flagship with the lowest resolution display on the market. No wonder why Apple has record profits. The sheeple don't know any better, because they haven't seen what's past Apples pen.

57. marorun

Posts: 5029; Member since: Mar 30, 2015

Then there is a 40% chance i stop using netflix lol.

88. sissy246

Posts: 7111; Member since: Mar 04, 2015

100% chance I cancel. Apple will never get a dime of my money if I can help it. They will put s**t on and raise the price.

84. audibot

Posts: 634; Member since: Jan 26, 2017

no way it could happen now Netflix is too big and is international apple tv is a match stick in a volcano

86. Rocket

Posts: 654; Member since: Feb 24, 2014

dam, might have to switch to hulu if that happens :(

3. Joosty

Posts: 473; Member since: Mar 14, 2013

Dang, we all know they have the money to.

4. xfire99

Posts: 1205; Member since: Mar 14, 2012

He forgot to mention that Apple already bought iphonearena. Reading his articles about Apple, it's like he's excited and having an orgasm.

6. bucky

Posts: 3784; Member since: Sep 30, 2009

Feel free to leave.

39. Alan01

Posts: 615; Member since: Mar 21, 2012

And if Samsung was rumored to buy Netflix, I would have written it the same way. You see, it isn't how I write the story but how you interpret it. And since you're hard wired to read my stories as being pro Apple (which isn't true), anything I write you would consider to be pro-Apple. I like both platforms and I like the iPhone 7 and Galaxy S8. I also like my Moto Z Droid which is my daily driver. And I wouldn't mind a BlackBerry KEYone for the PKB and the battery life. Despite what you think, to do this job day in and day out for 8-9 years requires a very strong passion for smartphones...all smartphones. So any favoritism you think you see is in your mind, not mine. Regards, Alan F.

41. RebelwithoutaClue unregistered

Admit it, you don't have enough money to buy an iPhone otherwise you would ;) /s

60. whatev

Posts: 2265; Member since: Oct 28, 2015

Nice to see trolls get rekt by PhoneArena authors, it gives me life :)

64. omnitech

Posts: 1131; Member since: Sep 28, 2016

Sure you would have written in the same way....... You would for sure squeeze in something about the Note 7 exploding, how you don't like touchwiz, or the FPS and whatever negative connotation or backward compliment you can think of if it was Samsung buying Netflix. Oh don't forget a jab at Samsung might ruin Netflix paragraph. 100% guaranteed it would have those elements.

74. TheOracle1

Posts: 2260; Member since: May 04, 2015

If Apple had any ideas left over from Steve Jobs (because clearly Tim Cook doesn't) they would vertically integrate and do what the mobile operators are attempting to do. The same thing that LeEco are trying to do in China (but poorly in the US), which is to buy a large content provider like Netflix or Disney but also buy a T-Mobile or Sprint to deliver it. Mobile/Internet is the future of entertainment and content plus Apple have a captive flock of sheeple and the cash to pull it off. Would I want to be an inmate in that type of prison? Hell no! But it would be a goldmine for them.

5. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Not gonna happen. But if it does, I will certainly cancel my subscription.

17. MrHate

Posts: 318; Member since: Feb 09, 2015

Why would you cancel your subscription? Assuming that Apple would change very little? Oh wait. You're the biggest Samsung fanboy and always have to write 4000 word essays as to how s**t iPhones are.

37. k9luvr

Posts: 122; Member since: Oct 17, 2016

"Assuming Apple would change very little" You've got to be kidding ! Prices will at a minimum QUADRUPLE. Apple is all about the money and overcharges for everything.

59. marorun

Posts: 5029; Member since: Mar 30, 2015

I would also cancel my subscription. Apple dont deserve my hard earned money.

79. mrochester

Posts: 997; Member since: Aug 17, 2014

Why not?

66. omnitech

Posts: 1131; Member since: Sep 28, 2016

They would jack up the price to Apple levels for sure though.... Apple overprices everything, that's a fact while I think Netflix pricing has been quite fair. That's a legit reason to cancel really....

77. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Because it won't be Netflix anymore. Think of all the censorship. Think about having to pay for movies I saw before that were free. Netflix already charges money for things I hav3 seen free before. Apple would make it worse. Thought they wouldn't reduce it to an iOS on my app, the iOS version will likely get extra benefits that Android users would not. Right now Netflix like YouTube is equal on all platforms.

22. nctx77

Posts: 2540; Member since: Sep 03, 2013

Why? That's just stupid. I love me some Apple, but I still use Google services. You take this stuff way to serious!!

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