This Is How Apple Could Enter The Content Game

Pacifc Crest's Andrew Hargreaves was a guest on "Bloomberg GO" Friday to offer his expert opinion on the Financial Time's report that Apple Inc. (NASDAQ: AAPL) and Time Warner Inc (NYSE: TWX) discussed a potential merger.

Related Link: Albert Fried On Apple And Time Warner Talks: Not Probable, But Beneficial

According to Hargreaves, the Apple–Time Warner merger discussions sounded like a "one-off comment in a single meeting that didn't go very far." He added that if Apple were indeed interested in expanding its reach into online video it would be better off looking to acquire a platform company rather than a content business.

"I would think they would be looking for a business that they can scale virtually infinitely on a global basis," the analyst continued. "Producing content is not necessarily that kind of business."

So, what about acquiring Netflix, Inc. (NASDAQ: NFLX)?

Hargreaves pointed out that the acquisition that "makes the most sense" would be acquiring Netflix. After all, the company is already a global leader that is already scaled across many countries with an "incredibly broad" portfolio of content that can be further accelerated.

Finally, Bloomberg's Cory Johnson jumped in and pointed out that Apple's acquisition strategy has always been "build it" and not "buy it."