Apple rumored looking to buy Netflix

[Teelie]

Another potential buyout. Not as bad as the Disney/Fox one but still alarming if Apple buys Netflix. I think Netflix should stay as independent as possible. At this point the potential is only 40% but who knows what Apple will do with all their money once they bring it in.

In the wake of the Disney-Fox deal having gone down last month, many have speculated as to what would be the likeliest next acquisition of one giant entertainment conglomerate by another.

A common answer was that of Apple acquiring Netflix for around $50-75 billion. Apple has $252 billion in overseas funds reserves, growing at $50 billion annually, and with President Trump’s newly passed corporate tax cut they have a one-time allowance to repatriate cash stored overseas without a major tax hit.

Effectively they’ll soon have a LOT of money available and a need to spend it. As a result, analysts for Citi now claim that the chances of that acquisition taking place have reached a quite high 40% according to Business Insider. Analysts Jim Suva and Asiya Merchant tell clients:

“The firm has too much cash – nearly $250 billion – growing at $50 billion a year. This is a good problem to have. Historically, Apple has avoided repatriating cash to the US to avoid high taxation. As such, tax reform may allow Apple to put this cash to use. With over 90% of its cash sitting overseas, a one-time 10% repatriation tax would give Apple $220 billion for M&A or buybacks.”

There’s room for doubt though. Apple recently committed $1 billion towards creating new shows, and their largest acquisition to date was buying Beats for $3 billion in 2014. There’s also been no reports of talks between the two companies at this time beyond a rivalry in original programming in which Netflix is easily far ahead of Apple.

Dark Horizons

 

[MessiahDecoy123]

Not as bad as Disney?

Apple forces you to use lame Apple products for everything.

There is no silver lining to this deal.

 

[Sithborg]

Oh god. No, just no. itunes is bad enough...

 

[Teelie]

I don't see how Apple could force all Netflix customers into something like iTunes or some other Apple product. Though I'm sure the same people who cheered the Disney/Fox purchase are just as happy about this one, right? Right?

 

[psylockolussus]

Not as bad??? You do know that Apple is a much bigger company than Disney??? Yeah "not as bad".

 

[Kahran Ramsus]

This is much worse than the Disney/Fox deal.

 

[TheVileOne]

Why does Apple need Netflix? They have iTunes and Apple TV already.

 

[Iceman]

Not as bad??? You do know that Apple is a much bigger company than Disney??? Yeah "not as bad".

Not as bad because less bias.

 

[TheVileOne]

You can make arguments for and against here.

I guess my issue here is that Apple already has its own outlet for things like this in iTunes and Apple TV. We haven't been seeing original content from them like Netflix because they simply haven't been producing it. The trades reported that Apple apparently budgeted $1 billion last year to start producing original TV shows and movies. Not sure if anything ever came of that.

You can make an argument here that people are OK with the Disney/Fox purchase should be OK with this as well. Because look. Disney buying 21st Century Fox gives Disney over half of controlling interest in Hulu, it gives them the 20th Century Fox movie studio, it gives them 20th Century TV and all the IP within, FX, FXX, and a whole heaping amount of media IP. So now Disney will have its own streaming sub service and now they own over half of Hulu, plus pretty much the biggest piece of the theatrical distribution pie.

It seems that Apple wants to get in the streaming original content game, but they don't really know how to do this themselves. If they buy Netflix, they get one of the top names for that to fulfill that area for them, and the Apple people can keep making their phones, tables, and laptops. Meanwhile, Netflix will make their Stranger Things and How to Make a Murderer shows they don't know how to do.

 

[Arachnerd]

Please, no. God no. Do not let this happen. 2018 is off to a great start.

 

[MessiahDecoy123]

I don't see how Apple could force all Netflix customers into something like iTunes or some other Apple product. Though I'm sure the same people who cheered the Disney/Fox purchase are just as happy about this one, right? Right?

It's not black and white.

You don't have to always support corporations or always oppose them.

To put it simply, Disney has done a respectable job with my favorite franchises, worse companies could've bought Fox, and there were other silver linings.

Apple I avoid like the plague due to their forced use of apple products. Nothing pisses me off more except having to buy a new ipod cause the battery died. Then you have horrible abuse of worker rights in China.

Then add to that the fact that I'm a loyal netflix fanboy. I've been with them since day one (mostly).

So why would I have identical responses to these two corporate power moves?

I feel differently about every party involved.

 

[2kt09]

Even if this does happen, it will go down as bad/as good as Google owning YouTube.

Not as bad because less bias.

and less media/content control

as Vile succinctly pointed out

 

[Iceman]

The argument that people who are ok with the Disney Fox merger should be ok with this one too makes sense. But it would only be thought of in the first place by someone who has a bias and are bearing a grudge or something. No one else would even be thinking along those lines.

It's like 2 murders happen and the first thing someone says when the 2nd one happens is that the second one isn't as bad as the first. Not a natural line of thinking for someone neutral.

 

[honestbharani]

Even if this done happen, it will go down as bad/as good as Google owning YouTube.



and less media/content control

as Vile succinctly pointed out

You do realilze Netflix does content control? Apple owns distribution platforms. Its waaay worse than Fox/Disney if you look at it in any sane manner.


But personally, I am not really against it, per se. The worst part has already happened (the net neutrality being dead ruling) so it makes sense corps are going this way. I will say an Apple-Netflix merger is worse (from a consumer perspective) than Fox-Disney but better than AT&T-Time Warner. That is how I view it, at least.

 

[honestbharani]

The argument that people who are ok with the Disney Fox merger should be ok with this one too makes sense. But it would only be thought of in the first place by someone who has a bias and are bearing a grudge or something. No one else would even be thinking along those lines.

It's like 2 murders happen and the first thing someone says when the 2nd one happens is that the second one isn't as bad as the first. Not a natural line of thinking for someone neutral.

I dont really get what you meant here mate. AFAIC, mergers are always a part of corporate business strategy and there is no point in being pro or against something like that. All we can do as consumers is think of it from that perspective and as I said, when you go into that mode, you can at least start to rank what will impact your experience the most and things like that. From that standpoint (AND adding the recent ruling against net neutrality), any time content+platform folks merge is a thousand times more likely to impact consumers negatively than any number of content creators merging. Its just obvious.

 

[MessiahDecoy123]

I'd say it be closer to two different people opting to buy Marvel.

Kevin Feige or Zack Snyder.

And expecting the reaction to be identical because buyers are either always evil or always good.

Not all corporations are the same.

If they were DCEU and MCU would be just as successful or critically successful.

The prequels would be no different from the sequel trilogy.

Also do you guys understand the media landscape is changing? Disney buying Fox is about bargaining chips in the upcoming streaming war.

A huge library of content is Disney's only possible ace and without it they would be facing Fox's desperation eventually.

The Sequel Trilogy and the MCU phase 3 is coming to an end. Disney needs more promising developments beyond 2019.

If you think that's unfair to Fox or the consumer, you don't see the bigger picture.

 

[Iceman]

I dont really get what you meant here mate. AFAIC, mergers are always a part of corporate business strategy and there is no point in being pro or against something like that. All we can do as consumers is think of it from that perspective and as I said, when you go into that mode, you can at least start to rank what will impact your experience the most and things like that. From that standpoint (AND adding the recent ruling against net neutrality), any time content+platform folks merge is a thousand times more likely to impact consumers negatively than any number of content creators merging. Its just obvious.

I wasn't talking about that. I was saying comments on how others should view a merger (almost morally) because of how they viewed a prior one strike me as biased.

 

[honestbharani]

I wasn't talking about that. I was saying comments on how others should view a merger (almost morally) because of how they viewed a prior one strike me as biased.

Well, if I learned anything from the discussions around the Disney/Fox merger, it was that the only ones predicting doomsday due to those deals were obviously biased against Disney and had little/no actual logic or facts behind their "stand". I assume if they are just being called out here on their stand on this proposed merger, its fair game. I don't think its being "biased" when you are calling out someone on their "bias".

 

[Kuwolski]

I'd say it be closer to two different people opting to buy Marvel.

Kevin Feige or Zack Snyder.

And expecting the reaction to be identical because buyers are either always evil or always good.

Not all corporations are the same.

If they were DCEU and MCU would be just as successful or critically successful.

The prequels would be no different from the sequel trilogy.

Also do you guys understand the media landscape is changing? Disney buying Fox is about bargaining chips in the upcoming streaming war.

A huge library of content is Disney's only possible ace and without it they would be facing Fox's desperation eventually.

The Sequel Trilogy and the MCU phase 3 is coming to an end. Disney needs more promising developments beyond 2019.

If you think that's unfair to Fox or the consumer, you don't see the bigger picture.

Yes, and basically Disney has taken a firm grip of it's destiny, as opposed to Time Warner and Fox who waved the white flag against the brave new world that is to come. Rather then allow themselves to be swallowed by bigger sharks, they beefed up and reinforced that they stay one going forward. Big business is cutthroat and always has been. This is survival.

 

[Jekecy]

Not as bad as Disney?

Apple forces you to use lame Apple products for everything.

There is no silver lining to this deal.

In which scenarios does Apple force you to use their products?

In regards to Netflix, Apple's absurd surplus would be a boom for their original IPs. As more and more companies are moving to their own streaming services, Netflix is going to take a hit. Creating their own exclusive projects will keep them ahead and backing from Apple will solidify their position in this streaming age.

 

[Loden Greatstorm]

The rich just keep getting richer...

 

[Micromind]

I'm don't mind it, with Fox Studio's acquisition by Disney there's a void left in terms of Original Content creator, while Netflix is not a regular movie studio and it cannot possibly take the place of Old Fox Studios, it still can provide some competition in the field of Streaming series.

With Apple buying Netflix, it will provide Netflix some financial support so that it does not close down due to competition from Disney's own streaming services. (or from WB and AT&T's streaming if it ever happens.)

 

[Kuwolski]

Netflix is chasing massive debt by trying to grow it's subscriber base overseas. Being purchased by Apple would solidify the service and pretty much deal with that problem. This will help buffer them from the massive boost that Hulu is likely to get as well as Disney's (and others) streaming services to come.

 

[2kt09]

The rationale is that Netflix currently creates content but less so than Fox /Disney.
Streaming is the name of the game, which Fox/Disney now also has a more substantial stake in via Hulu + w/e new service they're planning (either would entail reducing Netflix's library to prop those up).

Assuming Apple buys Netflix, then what?
Apple product exclusive? Change its model for something more like the appstore or itunes? Is it more or less like GoogleTube?

 

[jmc]

Disney and Apple have been in bed together for 25 years every since Pixar came to be. If any one thinks this is a going to help competition they are deluding themselves. The two companies will work with each other not against. Either way the consumer will lose out.