There's a Strong Chance That Apple Will Buy Netflix, Citi Analysts Say

Does it make sense for Apple to buy Netflix?

"The firm has too much cash - almost $250 billion - growing at $50 billion a year". This news comes from Citi analysts Jim Suva and Asiya Merchant.

In addition to the money saved by Apple with the tax cuts, companies will also have the opportunity to bring in money stored overseas back to the US without major tax issues.

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.

According to Suva's latest report, if we do see Apple buying Netflix, the iPhone maker would only need about one-third of the expected $220 billion in cash it's expected to have after it repatriates its cash.

In the same Citi note, the analysts said there's a 20 to 30 percent chance Apple would acquire Disney.

The analysts have a few other companies earmarked for potential Apple acquisitions, notably Disney at around 25% likelihood and game publishers Take Two and Activision at the 10% mark.

With more than 90% of all its available cash overseas, a one-off 10% repatriation tax would net Apple about $220 million for buybacks or mergers and acquisitions.

While Apple dominates the smartphone sector across the world today, the same can't be said for its streaming market share. (AAPL) will buy online video streaming service Netflix Inc. Let us know why or why not down below!

Fuelling the scenarios are two big Hollywood names such as Reese Witherspoon and Jennifer Aniston who will feature in the first scripted video series of Apple.

Nollen believes that Netflix "changed the way people watch TV and notes that it is pushing even further into the film industry". A lot of this is reportedly due to the major tax breaks that the Trump administration just gave to giant corporations. Google-owned YouTube is already producing original television series and Amazon has won Oscars for "Manchester by the Sea" show. That's a 60 percent increase from the 50 films on its slate in 2017. Heads turned when Netflix announced that it would devote $7 billion to $8 billion to content in 2018, but it might still be shocking to hear that Netflix is going to release 80 original movies in 2018.

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