As China's economic growth declines, some analysts say Beijing may have to spend more on infrastructure, adding to concerns about high debts.China Economyread more
U.S. President Donald Trump said Tuesday that Washington and Beijing have a long way to go on trade, adding that America could place tariffs on an additional $325 billion...Asia Marketsread more
"The charts, as interpreted by Carley Garner, suggest that the upside in the stock market has gotten more limited," Jim Cramer says.Mad Money with Jim Cramerread more
John Paul Stevens, who served on the Supreme Court for nearly 35 years and became its leading liberal, has died.Politicsread more
The largest U.S. banks are scrutinizing members of the Federal Reserve for any insight into how the central bank will tinker interest rates.Banksread more
The U.S. and China restarted their trade talks, but signs are showing a comprehensive deal could be a long way off, if it happens at all.Marketsread more
The WTO ruling recognized that the United States had proved that China used state-owned enterprises to subsidize and distort its economy. But the U.S. must accept Chinese...World Economyread more
Facebook's cryptocurrency project has already been met with skepticism from policymakers around the world.Technologyread more
Stone, 66, a notorious Republican political operative who has described himself as a "dirty trickster," had previously been dressed down by the judge for his public remarks...Politicsread more
Delta is gathering more data from customers than ever in hopes of avoiding customer service problems and increasing customer satisfaction, its CFO says.At Workread more
The Biden team's second-quarter Federal Election Commission filing shows that the campaign wrote a check of just over $5,300 on June 28 to Sheehan Associates for "strategic...2020 Electionsread more
"We think Netflix is best strategic fit on leading position in engagement level as well as original content, differentiating itself from pure aggregators of content," J.P. Morgan analyst Samik Chatterjee said Monday. "We believe there is value to acquiring the most successful player in this space, which is hard to replicate with a smaller player in this market."
Chatterjee notes that the purchase would likely command a sizable premium. If that premium was 20 percent, it would likely cost Apple $189 billion, the analyst speculates. Netflix has a current market value of $148 billion and $7 billion in net debt.
The note from Chatterjee outlines three industries the firm thinks would be a good fit for Apple to make strategic acquisitions and names three companies Apple should buy: Netflix, Activision Blizzard and Sonos. This is speculation from Chatterjee but comes as Apple's long run of growth from the iPhone begins to dwindle. Chatterjee even notes specifically that the combination of Apple-Netflix is unlikely.
Apple and Netflix did immediately respond to requests for comment on J.P. Morgan's speculation.
"We believe Apple can drive synergies between its leading position in smartphones and the rapid transition of video consumption to mobile to drive stronger services growth," Chatterjee said. "We find Netflix as the best strategic fit, although we appreciate a combination is less likely as Netflix is unlikely to be a seller for a modest premium."
While Chatterjee said it would be difficult and pricey for Apple to acquire Netflix, he provided three reasons why the streaming service would be the best fit for Apple. First, Netflix fits with Apple's preference of being an "aggregator of content," he said, rather than a traditional media company like Sony Pictures. Second, the Netflix subscription model fits with Apple's services revenue model. And third, while difficult, Netflix would be easier to acquire than Hulu and Amazon Prime.
J.P. Morgan thinks Apple needs to buy instead of starting a streaming service on its own.
"Video streaming, including original video content, is a highly competitive market with established traditional media houses as well new entrants fighting aggressively for incremental subscribers, which is likely to make it difficult to scale any new platform to compete effectively," Chatterjee said.
Additionally, J.P. Morgan thinks a combination with Netflix could streamline Apple's advertising revenue.
"An acquisition of Netflix could help Apple drive consumers faster to their gateway app, which is serving as an aggregator of content and multiple subscriptions, and could enhance the opportunity around potential advertising revenues in the future," Chatterjee added.
Shares of Apple and Netflix rose 2.8 percent and 3.4 percent, respectively, in Monday trading.
Disclosure: Comcast, which owns CNBC parent NBCUniversal, is a co-owner of Hulu.
– CNBC's Michael Bloom contributed to this report.