Citi Investment Research Lists Netflix, Disney, Tesla Among Top Apple Takeover Targets

Apple' history of 'growing its own' and its aversion to 'not invented here' raise questions about its willingness to use another established brand as the engine of future growth.

But then a key element of the company's reputation is its appetite for flouting conventional wisdom. JL

John Koetsier reports in Forbes:

Mobile is not dead yet -- far from it. But just as sure, the locus of innovation is moving elsewhere. And it's not good to make most of your money in an ecosystem that is not the focus of global innovation any more. Ask Microsoft, circa 2000s. The full list of acquisition targets includes three media firms, three game developers, and, of course, one car manufacturer.
The research arm of the investment bank Citi released a report this morning with seven potential merger and acquisition targets for Apple. Tops on the list is Neflix, at an assessed 40% likelihood, Citi says.
Elon Musk's Tesla, on the other hand, is only 5% likely.
But, I suppose, we can dream.
The full list of acquisition targets includes three media firms, three game developers, and, of course, one car manufacturer. Disney and Hulu are the media firms joining Netflix, while Activision, Electronic Arts, and Take-Two are the gaming companies.
Ranked in order of likelihood:

• Netflix: 40%
• Disney: 25%
• Electronic Arts: 10%
• Activision: 10%
• Take-Two: 10%
• Tesla: 5%
• Hulu: 0%

Netflix makes a ton of sense, of course, as the company dominates streaming media both domestically and abroad. Disney has a strong list of properties as well, but slightly more oriented to traditional media consumption, whereas Netflix is well-positioned to take advantage of the continuing trend to cut the cord (cord-cutting just jumped 5X).
But the most interesting name on the list is Tesla. And there's a key reason why this is the perfect acquisition for Apple.
Tesla needs cash (which Apple has). Apple needs innovation (which Tesla has).
Tesla is inventing the future of transportation, with arguably the most data feeding self-driving car systems of any manufacturer on the planet. It's strong in electric vehicles, with the biggest brand in the market, and it has huge advantages in artificial intelligence, which is propelling its self-driving capabilities.
Tesla could put Apple's quarter of a trillion dollars of cash to good, productive use. Tesla could regenerate Apple's stagnated innovation engine, which has been churning hard on the next new mobile phone launch, but needs entire new ecosystems to expand into. Sure, mobile is not dead yet -- far from it. But just as sure, the locus of innovation is moving elsewhere.
And it's not good to make most of your money in an ecosystem that is not the focus of global innovation any more. Ask Microsoft, circa 2000s.
The only hitch?
Elon Musk would need to be the new CEO of Apple. Tim Cook would have to surrender his role for a new visionary for a new time.
By all reports Cook is a humble man.
I wonder if he could make this move, which would be best for the industry, best for Tesla, and best for Apple.