One bank wants Apple to buy Netflix, Activision and Sonos
Apple loves to hoard cash. The latest read shows it has $245 billion in cash and securities. Some investors view that as a complete shame, saying that there are plenty of acquisition opportunities out in the market to fit the company’s agenda.
For one, JP Morgan analyst Samik Chatterjee thinks Apple should buy Netflix. After all, Apple’s planning to binge on plenty of original video production and its future competitor is already spending $8 billion a year to do it.
“We think Netflix is best strategic fit on leading position in engagement level as well as original content, differentiating itself from pure aggregators of content,” Chatterjee wrote in a note obtained by CNBC.
He believes that such a combination is unlikely — with $148 billion market value and $7 billion in debt, Apple would have to lock antlers on a premium — but Chatterjee does think it makes sense when it comes to furthering Apple’s revenue branches.
Other smaller puzzle piece-fitting suggestions include Activision Blizzard ($35.7 billion market capitalization) to drive up gaming and services revenue and Sonos ($1.3 billion market capitalization) to aid in smart home products like the HomePod.