Analysts Lay Odds At 40% That Apple Buys Netflix In 2018

Posted January 03, 2018

This perhaps makes the company more attractive to Apple, which has begun dabbling with original content to supplement the movie and TV show purchases and rentals traditionally available through iTunes. "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", they added. The company ended 2017 with the purchase of Shazam, a popular music app capable of identifying songs after receiving a quick soundbite. He believes that the streaming firm is looking beyond what he describes as "the market's obsession" with subscriber numbers by trying to improve its earnings and revenue quality.

Apple will be able to repatriate about $US220 billion in cash to the USA under the Trump tax cut.

Suva and team analyzed several potential acquisition targets for Apple, and of the options, they gave the possibility of Apple buying Netflix the highest probability. The tax cut, as well as a one-time allowance for companies to repatriate cash held overseas without a major tax fee, could open up Apple's path to buy new companies. "Historically, Apple has avoided repatriating cash to the United States to avoid high taxation".

The note was written before Disney's acquisition of Fox's studio and TV assets.

Merchant and Suva said to the clients that Apple has "too much cash - almost $250 billion - growing at $50 billion a year".

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As one of the richest companies in the world, Apple certainly has the financial clout to buy just about anything it sets its eyes on.

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 vehicle project in hand, the Apple buying Netflix still remains a faint prediction. Let us know why or why not down below! Apple has started creating original content for Apple TV, partnering with Jennifer Aniston and Reese Witherspoon on a new show.

The analysts say that Apple is only going to need a third of that cash to fund its purchase of Netflix.

It was reported a year ago that it planned to rent California's Culver Studios for the shooting of original TV shows and movies, as it has plans to invest up to $1 billion in TV and movie productions.