As per latest sources, there is a strong possibility that Apple could buy Netflix instead of launching it’s own streaming services. Netflix is already at the the top of subscription based streaming services across world. And on the other side Apple has been working for a long on its TV based streaming subscription service for their TV app on the apple TV and other iOS based devices. Now this time Apple maybe looking for to acquire Netflix.
Ji. Suva and Asiya Merchant,Citi analyst claimed that likely there is 40% probability that Apple will acquire Netflix now that US president Trump’s corporate tax cut has been passed. Apple’s list of potential acquisitions contains few companies including Activision, Take-two, Hulu, Tesla and electronic arts.
This cut in the corporate taxes allows a company to repatriate cash stores overseas without a major tax hit along with a one-time allowance. Apple has more than $250 Billion cash stores in tax havens outside of the US. It could help apple significantly to buy new companies.
As per analysts Netflix could cost upto $75 Billion for apple. Still with the remaining cash and along with $50 Billion yearly growth, Apple could be looking for other potential investments. This decisions will apple apple to gain a strong hold on the subscription based streaming services.