For years now there have been rumors that someone like Apple would buy Netflix. Now J.P. Morgan has taken a look at how much buying Netflix would cost.
According to J.P. Morgan’s analyst, Samik Chatterjee buying Netflix would reportedly cost $189 billion. “We believe there is value to acquiring the most successful player in this space, which is hard to replicate with a smaller player in this market,” Chatterjee wrote in a CNBC story.
Well, Apple reportedly has $245 billion cash on hand even Apple would likely be very hesitant to pay $189 billion for Netflix.
Samik Chatterjee did say J.P. Morgan believes that Apple should buy instead of starting their own streaming service. “Video streaming, including original video content, is a highly competitive market with established traditional media houses as well new entrants fighting aggressively for incremental subscribers, which is likely to make it difficult to scale any new platform to compete effectively.”
“An acquisition of Netflix could help Apple drive consumers faster to their gateway app, which is serving as an aggregator of content and multiple subscriptions, and could enhance the opportunity around potential advertising revenues in the future,” Chatterjee added.
So what do you think Should Apple buy Netflix even at $189 billion? Or would you rather see Apple use some of that money to expand their new streaming service that will reportedly launch this year? Leave us a comment and let us know what you think.
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