Netflix Shares Are Hot Despite Not Actually Being Mentioned As An Apple Target

The Financial Times reported Apple Inc. AAPL was interested in making a bid for Time Warner Inc TWX in late 2015. The report indicates that Apple senior vice president Eddie Cue raised the possibility of a buyout during a meeting last year with Time Warner head of corporate strategy Olaf Olafsson.

Ironically, Netflix, Inc. NFLX shares were up 2.4 percent in Thursday's trading session, twice as much as Time Warner shares.

Related Link: Report: Apple's Eddy Cue Pushed For An Acquisition Of Time Warner Last Year

Although the Time Warner discussions didn’t move beyond the preliminary stage, the market seems to be connecting the dots that Apple is interested in expanding its media presence, and Netflix could be a logical buyout choice.

"Apple intends to ramp up its spending on original content to 'several hundred million dollars a year,'" people familiar with the matter told Financial Times. "It has also not ruled out acquiring a media company."

Netflix has also demonstrated the same kind of innovative spirit that Apple prides itself on and would seem to be a good fit for Apple’s brand.

Netflix’s $45 billion market cap would be relatively easy for Apple to come up with. Apple now has more than $200 billion in cash on its balance sheet.

The Financial Times reported that Time Warner and Walt Disney Co DIS could be good fits for Apple because of their share structures, but Disney’s $162 billion-plus market cap may be tough for even Apple to swallow.

Apple’s interest in Netflix appears to be nothing more than rumor at this point, but the market seems to like the idea of an Apple/Netflix partnership.

Disclosure: the author holds no position in the stocks mentioned.