Neither Apple Nor Microsoft Are Buying Netflixhttp://www.fool.com/investing/general/2013/04/03/neither-apple-nor-microsoft-are-buying-netflix.aspx Rick Munarriz
April 3, 2013
Netflix (NASDAQ: NFLX) would apparently look good on the arm of Apple (NASDAQ: AAPL) or Microsoft (NASDAQ: MSFT).
Jim Cramer played up the video service as a potential acquisition target on CNBC's Mad Money show on Monday night.
However, instead of going the more common Amazon.com (NASDAQ: AMZN) route, Cramer only singled out Apple and Microsoft as logical buyers.
Tying the knot with Netflix
He also suggests that Apple needs to make a meaty acquisition to wake up its freefalling shares: "How do we reverse that? Netflix!"
Cramer also argues that Microsoft should bid $13 billion for Netflix, a 30% premium to where it is now.
"Don't rule it out," he argues. "Why should this monster stay independent with its 27 million subscribers and Steve Ballmer desperate to leave a legacy?"
Both possibilities make sense, but they seem flawed after thinking them through.
Apple is being widely criticized for stashing $137 billion in cash as growth prospects peel away. The theory that the iEverything titan needs something proprietary for Apple TV isn't necessarily a good reason to buy Netflix. If the plan is to tie Netflix only to Apple TV owners, it would be merely keeping a Ferrari in the