Is there a truth to the rumors?




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A chart displaying the price of the Netflix stock is visible in the Stocks app in this illustrated illustration on an Apple iPhone on January 22, 2019. (Photo by Jaap Arriens / NurPhoto via Getty Images)Getty

rumors sure Apple buys Netflix, which could seal its passage in services, dates back to October 2016, when Ben Thompson explored the possibility, concluding that this would make a strategic adjustment for both companies (although he then re-examined his point of view about a year later).

Such an acquisition would be ambitious to say the least, but not beyond the limits of what is possible: The market value of Netflix is ​​approximately 156 billion dollarswhich, with a reasonable premium, would probably the total acquisition between 190 and 195 billion dollars. Apple has more than enough money, estimated at around $ 285 billion, allowing him to buy Netflix without breaking the bank and keeping in mind that Apple keeps generating cash steadily.

In addition, Apple already has experience in the world of content: Steve Jobs helped make Pixar a multi-billion dollar success; the company has developed its own content business, estimated at about twice that of Netflix, and persisted with the Apple TV not very successful, that he is now will be introduced on Samsung TVs, which all indicate Apple's interest in developing its content business.

Netflix founded by Reed Hastings, is a fascinating case study. His strategy allowed him to adapt to a rapidly evolving technological scenario and to proceed with an orderly and visionary transition from a messaging model to streaming, and then to create one of the world's largest content production in the world, not only in quantitative terms by combining global and local productions, but through high quality creations that have earned him several awards of the industry. It was a high-cost, high-risk strategy, whose key was the development of a sophisticated data model this allows him to know what his clients want and this has proven to be far more effective than the approach taken by his rivals, based either on blind faith or the visionary ability of so-called experts. If a company represents the upheaval of traditional television, Netflix is ​​this business..

But things are not that simple. The other component of Netflix's success is a strong corporate culture, based on trust and transparency of information, which its founder defines as the opposite of the Apple model, which could be the main obstacle to an agreement that, according to many analysts, should go forward. Hastings confidence in his model, as well as his pride and personality would be another obstacle to a possible acquisition, which could lead to a hostile takeover, with all that implies, followed by a post-acquisition phase difficult. These factors could prompt Apple to create its own Netflix, what Disney decided to do, or for functional acquisitions such as Texture for his future news service, or simply to buy minor players.

Whether the rumors are confirmed or not, Apple will buy Netflix will undoubtedly depend more on this type of setting that strategic considerations that undoubtedly fit perfectly in the agenda of Apple. But the simple fact that two pieces come together in theory does not mean that they will do it in practice. Only Tim Cook knows if Apple will attempt to buy Netflix. In short, things are not usually as simple as some analysts think.

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A chart displaying the price of the Netflix stock is visible in the Stocks app in this illustrated illustration on an Apple iPhone on January 22, 2019. (Photo by Jaap Arriens / NurPhoto via Getty Images)Getty

Rumors about Apple's purchase of Netflix, which could seal its passage in services, date back to October 2016, when Ben Thompson explored the possibility, concluding that it would make a strategic adjustment for both companies (although then reconsidered his year later).

Such an acquisition would be ambitious to say the least, but not beyond the possibilities: the market valuation of Netflix is ​​about 156 billion dollars, which, with a reasonable premium, would probably place the acquisition between 190 and 195 billion euros. dollars. Apple has more cash, estimated at about $ 285 billion, which allows it to buy Netflix without breaking the bank, while keeping in mind that Apple does not stop generating liquidity steadily.

In addition, Apple already has experience in the world of content: Steve Jobs has helped make Pixar a multi-billion dollar success. the company has developed its own content business, valued at about twice that of Netflix, and has persisted with the very disappointing Apple TV, which will now be featured on Samsung TVs, which demonstrates the interest of the company. Apple to develop its content business.

Netflix, founded by Reed Hastings, is a fascinating case study. His strategy allowed him to adapt to a rapidly evolving technological scenario and to achieve an orderly and visionary transition from a messaging model to streaming and then create one of the largest production plants. content in the world, in quantitative terms by combining global and local productions, but through high quality creations that have earned him many industry awards. This was a high-cost, high-risk strategy, the key of which was the development of a sophisticated data model that allowed it to know the wishes of its customers and which proved to be much more effective than the approach taken by his rivals. either based on blind faith or the visionary capacity of so-called experts. If a company represents the upheaval of traditional television, Netflix is ​​this business.

But things are not that simple. The other component of Netflix's success is a strong business culture, based on trust and open information, which its founder defines as the opposite of Apple's model, which could be the main obstacle to an agreement that, according to many analysts, Apple should continue. Hastings confidence in his model, as well as his pride and personality would be another obstacle to a possible acquisition, which could lead to a hostile takeover, with all that implies, followed by a post-acquisition phase difficult. These factors could prompt Apple to create its own Netflix, which Disney has decided to do, or opt for functional acquisitions such as Texture for its future information service., or simply to buy minor players.

Whether the rumors are confirmed or not, Apple will buy Netflix will undoubtedly depend more on this type of setting that strategic considerations that undoubtedly fit perfectly in the agenda of Apple. But the simple fact that two pieces come together in theory does not mean that they will do it in practice. Only Tim Cook knows if Apple will attempt to buy Netflix. In short, things are not usually as simple as some analysts think.


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