3 Companies That Could Buy Netflix

Consumers have a lot more choices when it comes to streaming services these days, and that's not necessarily good news for Netflix (NASDAQ: NFLX). The world's leading premium digital platform was downgraded by Needham analyst Laura Martin earlier this week, arguing that Netflix could lose 4 million domestic subscribers next year given the arrival of cheaper platforms launched by Disney (NYSE: DIS) and Apple (NASDAQ: AAPL) last month.

Disney+ and Apple TV+ are certainly not making life any easier for Netflix, with single-digit monthly price points that make Netflix seem like a luxury instead of a necessity. Martin argues that Netflix should consider an ad-supported platform at roughly half of the platform's current price, but since Netflix has long argued that it's not going that route, Martin feels that the best course of action would be for the company to put itself up for sale. She realizes that there aren't too many companies that can afford to buy Netflix. It has an enterprise value of nearly $140 billion, and if you tack on a 30% premium to potentially sway Netflix, that pushes the price tag north of $180 billion.

There are only 35 companies with market caps higher than $180 billion, and while many of them are tech and entertainment companies -- including Apple and Disney -- a lot of them aren't ideal fits as potential buyers. Let's go over Comcast (NASDAQ: CMCSA), Apple, and AT&T (NYSE: T) as three of the giants that could probably make Netflix work.

Source Fool.com