Citi: Apple Takeover Targets Include Netflix, Disney and Hulu
Seven Apple takeover targets have been identified.
Citi analyst Jim Suva believes Netflix tops Apple’s list of potential takeover targets. The news comes just days after Apple’s cash reserves topped $250 billion for the first time, according to The Fly.
In a research note to investors, Suva identified seven potential takeover targets for the iPhone maker using five filters: strategic fit, global scale, transaction size, few non-strategic assets, and the likely impact on Apple’s share price. These include Netflix, Disney, Hulu, Activision Blizzard, Electronic Arts, Take-Two Interactive, and Tesla.
Suva says the likelihood of Apple acquiring Netflix stands at 40 percent, while Disney is next at 25 percent. The other five choices have odds of 10 percent or less.
Netflix, Disney, and Hulu have all been eyed as possible Apple takeover targets in recent years. In April, for example, RBC Capital Markets’ Amit Daryanani explained that a “confluence of events” could soon make it practical for the iPhone maker to buy the Disney. The potential buyout would “instantly scale AAPL’s services, content, and media portfolio.”
Of the Apple takeover targets, Netflix would probably provide the company with the best fit. With a market cap of around $68 billion, it’s also probably the most doable. Disney, by contrast, has a market cap of $175 billion, which sounds a lot less practical.
We’ll continue to follow this story.
In the meantime, which company do you think Apple should buy? Use the comments below.
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