How Can Dusty, Ol' Microsoft (MSFT) Become Hip? By Buying Netflix! (NFLX) - Cramer
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Could Netflix (Nasdaq: NFLX) make Microsoft..."cooler?"
Possibly, and stock swami Jim Cramer thinks Microsoft (Nasdaq: MSFT) should take a crack at it.
Cramer noted Wednesday night that Microsoft suffers from "not being social enough, not being mobile enough, and certainly under CEO Steve Ballmer … not being cool enough." Putting down $13 billion for all of Netflix could be a game-changer for Microsoft.
With many questions popping up about how long Netflix would be able to keep paying premiums for content, Microsoft's deep pockets could cover those costs while shoring up its "bloated balance sheet."
Integration would be a snap, too. About 27 million U.S. households own and use an Xbox, with Netflix already having an app on the system. Microsoft could integrate a Netflix button alongside Skype on remote controls, Cramer noted.
Most of all, Microsoft could bring on Netflix CEO Reed Hastings, the visionary behind Netflix.
Cramer thinks a bid at $220 per share might do it, a premium of 30 percent to Wednesday's close at $169.74.
He also noted that Apple (Nasdaq: AAPL) wouldn't take a stab at Netflix, as previously speculated, becuase it's too "arrogant" and would rather build out its own streaming media platform.
Shares of Netflix are down 2 percent.
Possibly, and stock swami Jim Cramer thinks Microsoft (Nasdaq: MSFT) should take a crack at it.
Cramer noted Wednesday night that Microsoft suffers from "not being social enough, not being mobile enough, and certainly under CEO Steve Ballmer … not being cool enough." Putting down $13 billion for all of Netflix could be a game-changer for Microsoft.
With many questions popping up about how long Netflix would be able to keep paying premiums for content, Microsoft's deep pockets could cover those costs while shoring up its "bloated balance sheet."
Integration would be a snap, too. About 27 million U.S. households own and use an Xbox, with Netflix already having an app on the system. Microsoft could integrate a Netflix button alongside Skype on remote controls, Cramer noted.
Most of all, Microsoft could bring on Netflix CEO Reed Hastings, the visionary behind Netflix.
Cramer thinks a bid at $220 per share might do it, a premium of 30 percent to Wednesday's close at $169.74.
He also noted that Apple (Nasdaq: AAPL) wouldn't take a stab at Netflix, as previously speculated, becuase it's too "arrogant" and would rather build out its own streaming media platform.
Shares of Netflix are down 2 percent.
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