Netflix (NFLX) Gains Early on Speculation Apple (AAPL) Could Target
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(Updated - February 1, 2016 10:24 AM EST)
Netflix (NASDAQ: NFLX) is gaining early Monday following a very speculative article from Forbes suggesting Apple (NASDAQ: AAPL) could acquire the company. While speculative in nature a potential deal is not entirely far-fetched, thus the pop.
The article suggests that one way Apple - which has been trying to put together a viable TV product - could circumvent the tedious and lengthy negotiations process with Hollywood and the networks is to acquire Netflix.
A deal would propel Apple to the top of the crowded streaming video field which includes Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL) (YouTube), and Hulu, among others.
The author suggested a Apple takeover of Netflix makes sense now given the sell-off in Netflix stock. He also said it would likely not raise antitrust concerns given the multitude of competitors.
He said the lack of intestinal fortitude from Apple CEO Tim Cook would be the only thing to stop a deal from happening.
Shares of Netflix last traded up 3.5% to $95.10.
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