There is a 40% Chance Apple Will Acquire Netflix [Citi]

There is a 40% Chance Apple Will Acquire Netflix [Citi]

As such, tax reform may allow Apple to put this cash to use. The company has realized that the film and television industry is very different from music industry and its video offering is not up to the level of offerings made by its competitors Netflix and Amazon.com Inc (NASDAQ: AMZN). Apple, which is sitting on a massive cash pile of $252 billion that is mostly outside the US, would need to spend only a third of that cash to buy Netflix.

Originally founded in 1997 as a mail-based DVD rental program, Netflix has since redefined its image as the world's leading streaming content provider. Apple has approximately $252 billion in cash, and much of that money is overseas.

The analysts have a few other companies earmarked for potential Apple acquisitions, notably Disney at around 25% likelihood and game publishers Take Two and Activision at the 10% mark.

Last month, President Trump signed a new law that gives corporations a one-time allowance to repatriate cash stored overseas without taking a major tax hit.

Could Apple be eyeing a monumental buyout of Netflix? "This is a good problem to have", Suva and Merchant told clients.

The note was written before Disney's acquisition of Fox's studio and TV assets.

More news: Worldwide travelers briefly face delays entering US

But, in the end, one should note that the analysts are pointing at a 40% chance of this happening, and with other ambitious programs such as the autonomous auto project in hand, the Apple buying Netflix still remains a faint prediction. Now that we know that such a deal can happen, the question is, will it?

Apple has for years struggled to offer a compelling TV or movie offering.

The report points out that Apple has already hired top Hollywood talent Sony duo Jamie Erlicht and Zack Van Amburg to lead its Hollywood push and is reportedly developing a new TV show that will star Reese Witherspoon and Jennifer Aniston. So how much is Netflix worth?

How excited are you to have come across the possible future acquisition?

There were many rumors previous 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.

So, why exactly do analysts think that Apple will buy Netflix instead of some other profitable company?

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