Apple Poised to Snap Up Netflix

Apple Poised to Snap Up Netflix
Citigroup analysts estimate there is a 40% chance that Apple will dip into its $250 billion warchest to buy Netflix

(CCM) — Apple could be about to swoop in to acquire Netflix in a deal likely to be worth over $70 billion, according to a Business Insider report.

The recent tax cuts implemented by President Trump mean that Apple can repatriate large amounts of cash which it was previously unwilling to bring back into the country. It is likely to use a substantial part of this cash pile on corporate acquisitions, Jim Suva and Asiya Merchant, analysts at Citigroup, say in the report. "The firm has too much cash – nearly $250 billion – growing at $50 billion a year," they pointed out, estimating that there is a 40% chance that Apple will buy Netflix, while Activision, Electronic Arts, and Hulu are also possible acquisition targets.

Apple is keen to become more involved in video entertainment and its first scripted video series will star Jennifer Aniston and Reese Witherspoon. But acquiring Netflix would provide Apple subscribers with access to a large range of Netflix exclusives such as Stranger Things and The Crown.

If Apple repatriates its overseas cash it would now pay a one-time repatriation tax of just 10%, leaving it with more than $220 billion for acquisitions.

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