As a leader in technology, Apple continually looks toward the future. Love them or hate them, their products and solutions are highly profitable. So why is a report from CTI analysts saying there is a 40% probability Apple would buy Netflix?
With a quarter of a trillion in cash savings, Apple has long avoided bringing the bulk of its money into the US.
Instead, as with a lot of major corporations around the world, they tend to hold their cash stockpiles in offshore accounts.
By avoiding the substantial taxation imposed by the US government, Apple can maintain a healthy cash balance.
Since Donald Trump announced cutting corporate taxes, Citi analysts are speculating the tech giant will repatriate the some of its $250 billion back into the US and start investing more into acquiring companies.
The analysts also suggesting that there is roughly a 25% probability is buying Disney which is hard to believe.
If you saw the latest news last month when Disney made headlines announcing the long-rumored $52.4 billion take over of most of Rupert Murdoch’s 21st Century Fox, you’d be hard-pressed to think they are ready to sell.
Disney already has Marvel and Pixar the company Steve Jobs helped steer to success when he got kicked out of Apple.
As Karl Kaufman of Forbes noted, this latest news is more hype than anything. I tend to agree with his opinions on the matter which make a lot of sense.
We all know how secretive Apple is about their products, as they usually don’t divulge secrets.
This entire analyst of Apple buying Netflix is probably more of a tactic to spur investor excitement and sending people into a frenzy.
Netflix is worth a significant amount of money. They sit in and around a healthy $84 billion market cap.
I’m sure they must be enjoying the extra attention now, but I highly doubt they are willing to sell all or if any of their assets. They are certainly as large if not larger than Disney and Twenty-First Century Fox.
But if Apple were to buy Netflix, they would undoubtedly increase their global reach further with the streaming service’s 51 million paying U.S subscribers.