There were many rumors last year that Apple will be coming up with its own video streaming subscription-based service to compete with Netflix and Amazon Prime Video which were affecting iTunes popularity. But now according to a report by Citi analysts, Apple might buy the popular video streaming company.
According to Jim Suva and Asiya Merchant, Citi analysts, there is a 40% chance that Apple will acquire Netflix and under the new tax rules by US President Donald Trump, the company will be able to repatriate about $220 Billion around ₹14 lakhs crores in cash to the US government.
The firm has too much cash – nearly $US250 billion – growing at $US50 billion a year. This is a good problem to have,” Suva and Merchant told clients. “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 $US220 billion for M&A or buybacks.
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Apple needs only a third of cash to buy the company. We hope even if Apple acquires the popular platform they will continue to provide it outside of iOS, tvOS and MacOS devices as people love watching content on Netflix and buying an Apple product just to watch Netflix will be difficult. Stay tuned to Sid Tech for more information.
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