Apple may buy Netflix | Full Report

Apple may buy Netflix

Underneath the new taxing guidelines, the tech giant will be able to repatriate about $220 billion in money to the US.

Opposite to the reviews of Apple launching a video subscription product in 2018 to counter Netflix, analysts from Citi have mentioned that the iPhone maker may probably purchase the leisure firm by benefiting from US President Donald Trump’s company tax lower.

In keeping with Citi analysts, Jim Suva and Asiya Service provider, there’s a 40% chance that Apple will purchase Netflix. Underneath the brand new taxing guidelines, the tech large will be capable of repatriate about $220 billion in money to the US.

“The firm has too much cash — nearly $250 billion — growing at $50 billion a year. This is a good problem to have,” Suva and Merchant were quoted as saying.

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“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% of its cash sitting overseas, a one-time 10% repatriation tax would give Apple $220 billion for mergers and acquisitions (M&A) or buybacks,” they added.

A report in Business insider mentioned that iTunes has been an enormous hit for the corporate, however viewers have migrated more and more to providers like Netflix, Amazon or Hulu to look at their favorite exhibits leaving Apple struggling to supply a compelling TV or film providing.


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