Published: Wed, January 03, 2018
IT | By Jonathon Greene

There is a 40% Chance Apple Will Acquire Netflix [Citi]

There is a 40% Chance Apple Will Acquire Netflix [Citi]

But, in the end, one should note that the analysts are pointing at a 40% chance of this happening, and with other ambitious programs such as the autonomous auto project in hand, the Apple buying Netflix still remains a faint prediction.

With Donald Trump's aim to cut corporate taxes, alongside a one-time chance for companies to bring cash back to the United States from overseas without accruing a large tax bill, Apple will have a much bigger budget to buy new companies.

Apple has much of its stockpile in foreign regions, which it was previously unable to transfer to the US.

According to analysts at Citi, there's a 40% chance that Apple will acquire Netflix.

Prior to entertainment behemoth Walt Disney's (DIS) acquisition of Fox's studio and TV assets, the Citi analysts had pegged the likelihood of Apple buying Disney in the 20 percent to 30 percent range.

While iTunes has been incredibly successful for the conglomerate, Netflix, Amazon and Hulu have been the chosen TV streaming sites for viewers. The acquisition would also align with its recent content creation efforts.

"The firm has too much cash - almost $250 billion - growing at $50 billion a year".

"Historically, Apple has avoided repatriating cash to the United States to avoid high taxation". Apple is said to have a decent chance of buying Netflix at some point this year, which would certainly shake up the streaming scene.

Not only that, but the opportunity to repatriate money held in offshore accounts without paying a bunch of extra taxes means that Apple can bring the cash necessary for the purchase back into the States. Analysts Jim Suva and Asiya Merchant says that President Trump's cut in corporate taxes and the one-time allowance for companies to repatriate overseas cash will grant Apple a much larger war chest to buy companies.

Start placing your bets now.

Like this: