Apple has already bought the media detector Spotify, and word has it that the company is looking to purchase Netflix next.
Despite reports of Apple starting its own video subscription service, a new report states that Apple could buy Netflix in order to take advantage of President Donald Trump’s corporate tax cut. Citi analyst Jim Suva and Asiya Merchant believe that there is a 40 percent chance Apple will acquire Netflix to repatriate around 220 billion in cash to the United States.
Here’s what Suva and Merchant told their clients:
“The firm has too much cash — nearly $250 billion — growing at $50 billion a year. This is a good problem to have…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 per cent of its cash sitting overseas, a one-time 10 per cent repatriation tax would give Apple $220 billion for mergers and acquisitions (M&A) or buybacks,”
For the past few years, Apple has been focusing on creating original TV and movie programs like Carpool Karaoke, and Plante of the Apps. Not too long ago, Apple had scripted a series that will start Jennifer Aniston and Reese Witherspoon.
Apple has yet to confirm the reports about it purchasing Netflix, so we’ll have to see what the future hold. In the meantime, you can read the entire article about Apple purchasing Netflix over at Economic Times website.
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