Free Press Journal

Apple may buy Netflix


San Francisco : Contrary to reports of Apple launching a video subscription product in 2018 to counter Netflix, analysts from Citi say that the firm could possibly buy the entertainment company by taking advantage of US President Trump’s corporate tax cut. According to Citi analysts, Jim Suva and Asiya Merchant, there is a 40% likelihood that Apple will acquire Netflix. Under the new taxing rules, Apple will be able to repatriate about $220 billion in cash to the US. “The firm has too much cash — nearly $250 billion — growing at $50 billion a year. This is a good problem to have,” Suva and Merchant said. “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 $220 billion for M&A or buybacks.”