The expensive deals with the studios? They get a lot cheaper when you know that the guy on the other side isn't desperate, as Rocco says Netflix is now. At this moment, the balance of power is shifting from the studios to Netflix as more successful productions, like The Walking Dead, need you to get started by "Binging" through the history of the show. Knowing that your back isn't to the wall when you are negotiating with Time Warner (TWX) is a beautiful thing.
Oh, and let me parse something else Rocco said: "[Netflix CEO Reed Hastings] spins everything positive." Actually no, he doesn't. He was abject about his mistaken two-stock solution -- streaming and the disc -- and it was his honest and forthright way that he dealt with that issue that made me think he's totally stand-up. He just made a bad decision and he corrected it. That's the sign of very good leadership. That's in the past, and the first time I read about it in ages was when Rocco dredged it up.
Now, given that Netflix was up 100% in the first quarter, I believe it can come down. And if it wants to stay independent, it should do a monster equity offering that would help it refinance the debt on its own. No sweat.
But that's all the more reason why Microsoft should swoop in now before Mister Softy's quarter. And to hear Reed Hastings conduct the Microsoft conference call, even in his own quirky way? That would be a heck of a lot better than anyone who is doing the investor relations now.This is a match so made in heaven it would even rattle Apple (AAPL), if anything can rattle that hobbled giant. I have been saying for months now that Apple needs to do something to jolt itself into the social and mobile world. Buying Netflix will do that. If it doesn't act now, Microsoft can make its move and restore the luster it once had among investors and, most of all, users. Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AAPL.
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