This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer: Why Shouldn't Microsoft Buy Netflix?

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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs