Apple to Acquire Netflix: CITI Analysts. There are 40% chances that Apple will acquire Netflix according to CiTI analysts Jim Suva and Asiya Merchant. Both analysts said that both companies will reveal this news soon as Us president Trumps’ corporate tax cut has been passed.
Apple to Acquire Netflix: CITI Analysts
This news is contrary to what Apple announced previously, i.e. Apple launching a video Subscription product in 2018 to counter Netflix.
While telling about the Acquisition, Suva and Merchant said that:
“The firm has too much cash – nearly $250 billion (roughly Rs. 15.9 lakh crores) – growing at $50 billion (roughly Rs. 3.18 lakh crores) a year. This is a good problem to have
Apple will be able to repatriate about $US220 billion in cash to the US under the Trump tax cut
They further added that:
Historically, Apple has avoided repatriating cash to the US to avoid high taxation. As such, tax reform may allow Apple to put this cash to use. With over 90 percent of its cash sitting overseas, a one-time 10 percent repatriation tax would give Apple $220 billion (roughly Rs. 14 lakh crores) for mergers and acquisitions (M&A) or buybacks
Apple has for years struggled to offer a compelling TV or movie offering. iTunes has been a huge hit for the company, but viewers have migrated increasingly to services like Netflix, Amazon or Hulu to watch their favorite shows.