Disney Just Got a Lot More Intriguing
It’s been reported today that an analyst with Citi is pegging the likelihood that Apple (AAPL) would purchase Netflix at about 40%.
Citi analysts say that there is a 40% likelihood of Apple acquiring Netflix.
Apple will be able to repatriate about $220 billion in cash to the US under the Trump tax cut. The company would need only one-third of that to snap up Netflix. – USA Today News
As I had stated earlier this week, there are two different roads that Apple can go down when it comes to media. They can either pursue diversifying their risk and grow their cross-platform revenue or they can double-down on profit and use media to support their hardware sales.
I had made the case that Apple should buy Netflix because it’s hard to see what other business outside of the iPhone can provide iPhone-like volume and margins. But if Apple were to follow this road, they’d need to make a big splash that would entail buying entire companies and not just individual shows.
But the game board has changed a lot with the recent purchase of 20st Century Fox by Disney. Disney has seriously upset the status quo in Hollywood, and we could see some rapid change coming. Corporate mergers can be like mini-world-wars. Once the first shot gets fired, everyone races to grab their turf.
Now I would think that Disney would make a nicer purchase for Apple than Netflix. Yes, it would cost a lot more than Netflix, but Apple may be the only company in the world who could afford to contemplate a purchase of this magnitude. I’m sure if AT&T or Amazon could afford it, they would have purchased Disney already.
Now available in iBooks —> The Tesla Bubble
Apple will be able to repatriate about $220 billion in cash to the US under the Trump tax cut. The company would need only one-third of that to snap up Netflix. – USA Today News
As I had stated earlier this week, there are two different roads that Apple can go down when it comes to media. They can either pursue diversifying their risk and grow their cross-platform revenue or they can double-down on profit and use media to support their hardware sales.
I had made the case that Apple should buy Netflix because it’s hard to see what other business outside of the iPhone can provide iPhone-like volume and margins. But if Apple were to follow this road, they’d need to make a big splash that would entail buying entire companies and not just individual shows.
But the game board has changed a lot with the recent purchase of 20st Century Fox by Disney. Disney has seriously upset the status quo in Hollywood, and we could see some rapid change coming. Corporate mergers can be like mini-world-wars. Once the first shot gets fired, everyone races to grab their turf.
Now I would think that Disney would make a nicer purchase for Apple than Netflix. Yes, it would cost a lot more than Netflix, but Apple may be the only company in the world who could afford to contemplate a purchase of this magnitude. I’m sure if AT&T or Amazon could afford it, they would have purchased Disney already.
Now available in iBooks —> The Tesla Bubble
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