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Cramer: Netflix Ripe for a Takeover

Being as AT&Tplans to acquire T-Mobile USA from Deutsche Telekom, Cramer thinks Sprint Nextel or Verizon Communications should consider picking up Netflix. Better yet, the "Mad Money" host said Apple would be smart to acquire the online content provider.

"The combination of Apple’s iPad — the ultimate viewing device — and Netflix’s video library may be all we need," Cramer said. "I say, if you can't beat 'em, then join 'em."

A $12 billion company, Netflix has roughly 20 million subscribers, who account for up to 20 percent of all evening data demand. Still, there is tremendous short interest in the stock. But Cramer said it bottomed when movie rental firm Blockbuster recently said it would not be liquidated and would stay in business. To Cramer, Netflix has little competition. The Los Gatos, Calif.-based company continues to make deals with content providers and has even begun creating its own proprietary programming.

With Facebook valued at $65 billion, Cramer wonders what Netflix would be worth if valued like the social media giant. After all, Netflix's number of subscribers continues to grow. Should a company like Facebook or Twitter become public, Cramer thinks Netflix's $12 billion valuation could double.

When this story was published, Cramer's charitable trust owned Apple.

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