Apple has 40% chance of buying Netflix, analysts say

Usual J to Apple acquire companies in order to improve work in a certain area in which you want to focus; these acquisitions, however, usually involve small companies, possibly because it is easier to manage and implement their philosophy in a smaller team than in larger ones, with an already well-founded policy.

Still, there could be an exception to the rule, according to Citi analysts who said that Ma has 40% chance to buy the Netflix, as the Business Insider.

Analysts Jim Suva and Asiya Merchant have stated that the cut in corporate taxes, a feat by American President Donald Trump, can be of great help to Apple achieving this feat in addition to the company also being able to take advantage of the repatriation of the amount it has in the abroad (also directly related to this tax cut).

The company has nearly $ 250 billion in cash growing at $ 50 billion a year. This is a good problem to have. Historically, Apple has handled the repatriation of money to the US in order to avoid a high tax. As such, the tax reform may allow Apple to put that money to use. With more than 90% of its money abroad, a 10% repatriation tax will give Apple $ 220 billion for mergers, acquisitions and repurchases.

With the money Apple has, analysts estimate that it would only need a third to buy Netflix and the great minds behind the success of the service. streaming video. But analysts did not bet only on this company; they also listed the likelihood that Ma would buy other giants, as shown in the graph below:

Apple Business Acquisitions

Right behind Netflix, the Disney it would be a second possible target for the Cupertino giant, with a 25% probability of purchase. However, it is worth mentioning that the survey was carried out before Disney announced the acquisition of Fox. Electronic Arts (EA) and Activision were around 10%, and the Tesla was listed with a 5% probability.

There are old rumors that Apple would buy some of the aforementioned larger companies; however, if this prediction is based only on the amount she has or can have in the bank, the bets can be mere kicks or even “wishes” from the industry.

On the other hand, Ma has really invested a lot in efforts to improve its video content and, perhaps, this acquisition is a bigger leap than if she needed to create something from scratch more or less as she did with Beats, for the Apple Music.

However, I still think Apple prefers to create something different (and better?) Than what already exists on the market. S the time dir

via iClarified