According to a report by the Citi Analysts, there is almost a 40 percent chance that Apple will purchase Netflix in 2018. According to The Business Insider, a one-off allowance to send cash stored overseas and the new cut in corporate tax will enable Apple to do this. With around $252 billion kept abroad, Apple would only require a third of the amount to buy Netflix.
Although we are still in the earlier days of 2018, it seems that the next big entertainment industry’s sale might involve the purchase of Netflix by the amazingly profitable electronics giant, Apple. Since Apple is among the most profitable companies in the world, it’s possible that they could gather enough capital needed to buy the streaming giant Netflix. But, with Disney having reported their interest in Netflix in the past, this does not mean that Netflix does not have other considerations in their mind.
In the past one year, talks about “Apple and Netflix” deal has been rife. However, an agreement between the two giants could not be finalized. But, with the corporate tax removed, the circumstances have since changed making the deal possible. Although it does not appear as if they have even started any official talks about the agreement, Apple seems to be edging closer towards doing. While streaming services such as Netflix and Hulu have taken off quite well in the past few years, Apple has struggled a bit to grow its platform. Buying Netflix, a huge giant in the entertainment industry will, therefore, give it a chance to expand its reach.
Although there is over 40 percent chance of this happening, it can still not be guaranteed. This is because a lot could even change. In any case, who saw Disney buying Fox coming back again in January 2017? If this deal fails, the question that many people will be asking is whether Apple will try to combine the streaming service with their existing infrastructure or just leave them as separate entities. According to there recently announced plans, they have plans to invest a lot of money in content, though it’s still not very clear where these shows or their future programs will be shown.
It’s, however, a known fact that purchasing Netflix will provide them with the best avenue to do this. Previously, Apple has avoided sending back cash to the US due to high taxation laws. A tax reform would, therefore, allow them to put their money to good use. With over 90 percent of their revenue lying overseas, a one-off 10 percent repatriation would provide them with $220 billion for buybacks.
