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Neither Apple Nor Microsoft Are Buying Netflix

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 (NASDAQ: AMZN) route, Cramer only singled out Apple and Microsoft as logical buyers.

Tying the knot with Netflix
Apple, according to Cramer, "needs a mobile content offering as well as something proprietary to run on Apple TV."

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