There are relatively high chances that Apple might Acquire Netflix and such confidence is inspired by the fact that US President Trump’s corporate tax cut has seen the light of day as was revealed by Asiya Merchant and Jim Suva.
The slash in corporate taxes will most probably give Apple an enormous cash warchest that will allow it to purchase new companies. Apple at the moment has almost $US252 billion in cash.
Suva and Merchant made their ranking of the possible Apple targets in a note that they had sent out to clients in December. According to it, they outlined Netflix as the ideal Company that Apple could most probably fall for.
The note was drafted a few weeks before Disney’s acquisition of Fox’s TV assets and studio. However, prior to the monumental event Citi had resolved to give Apple-Disney tie-up a 20-30% chance, a matter that sparked much talk.
A person familiar with the matter opined, “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 favourite shows.”
It was a short while back when Apple dipped a toe in the area of content creation. If everything moves according to plan, Reese Witherspoon and Jennifer Aniston might end up being Apple’s first scripted video series.
But it is critical to make a proper distinction of matters. Coming up with hit movies is pretty much different from manufacturing iPhones .There is every reason to believe that Apple might be interested in the acquisition of Netflix in the near future.
One thing that no one can dispute is the fact that the firm has a lot of cash. Everyone can attest to the fact that this is a desirable problem to come across.
Since its establishment, Apple has been seen as being the kind of company that usually avoids high taxation. Tax reform is what might make it possible for Apple to make good use of its cash. About 90% of its cash is overseas.