Home News Chances of Apple Acquiring Netflix Now Stand at 40%

Chances of Apple Acquiring Netflix Now Stand at 40%

written by Jordan Cobb January 3, 2018
Netflix and Apple

Two of the biggest companies in the world right now might soon be joining one another. In another shocker of an acquisition ever since Disney and Fox made a deal, Apple might soon be acquiring Netflix.

Citi analysts Jim Suva and Asiya Merchant have revealed that the new corporate tax cut passed by President Trump has given Apple a 40% chance of acquiring. Said tax cut will allow companies to repatriate cash that is stored overseas without taking a major tax hit, but only once can they do that. This also means Apple can now bring back $252 billion into the US that it wasn’t able too before.


Now as to where Netflix fits into all of this, Suva and Merchant back in December ranked which companies Apple is most likely to buy and the streaming service was right at the top of the list.

Given the success of Netflix, Hulu, Amazon Prime, and various other streaming, Apple has been searching for a way to offer their own intriguing service like those since the previously mentioned services have caused iTunes viewers to migrate elsewhere. Apple right now is banking on its first scripted TV series to hopefully kick things off.

Apple Store

According to them, Apple really only needs a third of their money to make the deal happen.

As they said:

The firm has too much cash – nearly $250 billion – growing at $50 billion a year. This is a good problem to have. 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.

Time will tell if this is meant to be.

What do you think of the news? Do you think the deal will happen? Let us know in the comments below!

Want more geek?