Despite Apple following the path of what made Netflix so globally popular — creating exclusive original content — analysts from JP Morgan are still advocating for an acquisition to be made. According to the bank, Apple should use its nearly $250 billion in cash to either purchase Netflix, Sonos or Activision Blizzard outright. As for a full takeover of Netflix, the bank estimates it would take at least $189 billion to be completed.

Bank analyst Samik Chatterjee said in a note, via CNBC:

The $189 billion figure comes with some ‘Apple premium’ tacked on, as the video platform’s market value stands at under $150 billion, not including its some $7 billion in debt. The bank believes that if Netflix were to come to terms with an agreement with Apple, an extra 20 or so billion would be added on to the final sale price.

Chatterjee continued in the note, with concerns Apple might struggle to grow the platform organically.

Finally, the bank believes acquiring Netflix would expedite Apple’s expansion into advertising, saying:

Days ago, analyst Katy Huberty from Morgan Stanley echoed bank claims that Apple could see a $1 trillion valuation again should the company decide to launch a “media bundle” subscription service in 2019, comprised of television, music and news.

As for just the mere mention of Sonos in the investors note, shares of the audio manufacture subsequently shot up, jumping from $10.80 to over $13 each over the past week.

Sonos stock over the previous five days.

As for the mention of Activision Blizzard, a report from Cheddar last week detailed how five employees from Apple verified claims the company was planning a “Netflix for games” type service.

Obviously, a Netflix acquisition from Apple is a huge long shot, but is it something you’d be interested in seeing? Tell us how you feel about this in the comments section below!

  • Apple can reach $1 trillion again if it launches a “media bundle” in 2019, says Morgan Stanley
  • Low-cost Netflix mobile-only plan arriving in select markets
  • Apple announces Q1 2019 revenue of $84.3b following revision down from $89-93b
  • Netflix for iOS launches Instagram integration to let users share movies and TV shows in their Stories
  • Following Netflix’s price hike, Hulu announces price drop for its entry-level ad-supported plan