The acquisition of Sonos could contribute to the success of a Spotify and Netflix merger in several ways. Firstly, it would allow the merged entity to control both video and music, creating a comprehensive entertainment platform. Secondly, Sonos' high-quality speakers could provide an enhanced user experience, potentially attracting more customers. Lastly, by establishing devices in America's wealthiest homes, they could tap into a lucrative market segment.

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With recurring revenue and a "Benjamin Button" product, Spotify has all the ingredients of a trillion-dollar firm. However, it has a valuation of just $47 billion. Apple Music has most of the music available on Spotify, along with the advantage of vertical integration. If Spotify and Netflix merge and acquire Sonos for vertical integration, they could control video and music and establish devices in America's wealthiest homes.

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The strategies discussed in the book can be applied to other businesses facing similar challenges by focusing on recurring revenue and product innovation. Businesses can also consider mergers and acquisitions for vertical integration to control more aspects of their industry. However, these strategies should be tailored to the specific circumstances and needs of each business.

Several factors might be contributing to Spotify's current valuation of $47 billion. Firstly, Spotify has a recurring revenue model, which is a strong financial foundation for any company. Secondly, it has a "Benjamin Button" product, meaning its product improves with age and use, increasing its value over time. However, it faces competition from Apple Music, which has most of the music available on Spotify and the advantage of vertical integration. If Spotify were to merge with Netflix and acquire Sonos for vertical integration, it could potentially increase its valuation by controlling video and music and establishing devices in America's wealthiest homes.

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