Apple May Have Plans to Acquire Netflix

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Apple May Have Plans to Acquire Netflix

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Apple has long been rumoured to be be working on a TV subscription streaming service to be integrated into their “TV” app on iOS devices and on the Apple TV. With Netflix already at the top of the list of subscription-based streaming services. Apple may likely be setting its eyes on the acquisition of Netflix. An analyst claims that there is a 40% likelihood that Apple will acquire Netflix now that US President Trump’s corporate tax cut has been passed.

The cut in corporate taxes, along with a one-time allowance for companies to repatriate cash stored overseas without a major tax hit, will give Apple a much larger cash surplus to buy new companies. Apple has over $ 250 Billion in available cash, which is stored in tax havens outside of the US, which the company will now be able to bring back to the US thanks to the new tax cuts.

Apple’s list of potential acquisitions contains a few companies, but Netflix tops this list according to the Analysts. This list includes companies like Activision, Electronic-Arts, Take-two, Hulu, Disney and even Tesla. However this was written before Disney’s acquisition of Fox’s studio and TV assets.

Apple will need to pay only 10% to bring this cash back to America, and Netflix acquisition could cost the company as much at US $ 75 Billion . Still leaving the company strong with 2/3rds of their existing cash and with this number increasing at the rat of US $ 50 Billion each year, Apple could be eyeing other potential investments.

This move will also allow Apple to establish a stronghold in the streaming space the company has been eyeing for several years. With Apple Music service already a huge success, a movie/tv series streaming service will only add to Apple’s revenue.

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Bharat Nagpal
Founder and Chief Editor of iGyaan. Bharat likes to keep on top of technology ! Follow Him on Google Plus : Google+