Skip to main content

Market Overview

Why Netflix Could Be A Top Prospect For Apple

Why Netflix Could Be A Top Prospect For Apple

Every quarter, Apple Inc. (NASDAQ: AAPL)’s massive $256.8 billion cash hoard swells by a few billion dollars, and every quarter, analysts and experts give their opinions on what Apple should do with all that cash. This week, Citi analyst Jim Suva was the latest to give his two cents on Apple’s cash, suggesting a buyout of Netflix, Inc. (NASDAQ: NFLX) would be the best choice.

Bumping The Apple Rumors

Up to this point, Apple has been content to simply watch its overseas cash hoard grow as it patiently waits for President Donald Trump’s proposed 10 percent repatriation tax holiday. If Trump follows through on his proposal, Apple may soon have access to more than $230 billion in cash. If Apple chooses to go the M&A route, Suva estimates there is a 40 percent chance Apple will use a large chunk of that cash to join forces with Netflix.

If Apple passes on a Netflix buyout, Suva believes a buyout of Walt Disney Co (NYSE: DIS) would be the next most likely scenario. Citi estimates the chances of an Apple/Disney merger at 25 percent.

In addition, the firm named Hulu, Activision Blizzard, Inc. (NASDAQ: ATVI), Take Two Interactive Software Inc (NASDAQ: TTWO) and Tesla Inc (NASDAQ: TSLA) as possible Apple targets, though Suva says the chances of a deal involving any of this tier of potential targets is 10 percent or lower.

In April, RBC Capital analyst Amit Daryanani explored the possibility that Apple could buy Disney, but he concluded that “odds are low” that the acquisition would actually take place.

Related Links:

5 Reasons Apple Won't Buy Disney

The Case For Why Apple Should Buy Disney

Latest Ratings for AAPL

Apr 2021BarclaysMaintainsEqual-Weight
Apr 2021Monness, Crespi, HardtMaintainsBuy
Apr 2021Credit SuisseMaintainsNeutral

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings


Related Articles (AAPL + NFLX)

View Comments and Join the Discussion!

Posted-In: CitiAnalyst Color Earnings M&A News Rumors Analyst Ratings Tech Best of Benzinga

Latest Ratings

FIBKStephens & Co.Downgrades
LEAFCanaccord GenuityDowngrades8.5
AGMSidoti & Co.Downgrades115.0
KEXGabelli & Co.Downgrades
OCGNCantor FitzgeraldDowngrades11.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at