Apple was previously unable to bring its foreign earnings back to the US due to federal tax law, but President Trump's newly passed corporate tax cut offers companies a one-time allowance for companies to repatriate cash stored overseas without a major tax hit, Business Insider reports.
"The firm has too much cash - almost $250 billion - growing at $50 billion a year". According to Jim Suva and Asiya Merchant, Citi analysts, there is a. The company has roughly $250 billion locked in foreign markets, but the newly passed Trump tax plan enables businesses to make a one-time repatriation of overseas funds, which would give the company more than enough to fund the merger. As such, tax reform may allow Apple to put this cash to use.
The research note sent out to investors looks at a bunch of potential purchases Apple could make with its massive cash pile, and Netflix is listed as the most likely.
It's estimated that Apple would only need a third of that to buy Netflix. Viewers have migrated to services like Netflix, Amazon or Hulu to watch shows.
OR bakers lose their appeal
Their attorneys haven't decided yet whether they will appeal the court's decision to the Oregon Supreme Court. Supreme Court heard arguments earlier this month in a similar case involving a bakery in Colorado.
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. The closest the two companies have been mentioned in proximity to each other is Apple's steady moves to launch its own streaming service to rival Netflix and invest in original programming. "Netflix has won", analyst Tim Nollen said in the note. Apple has struggled to offer compelling video content, even as iTunes revolutionized the music industry. The boost in original content will result in a $2 billion saving in licensing fees, the analyst said.
How excited are you to have come across the possible future acquisition?
As one of the richest companies in the world, Apple certainly has the financial clout to buy just about anything it sets its eyes on.
Nollen predicted that Netflix will increase original content from 25 percent in 2017 to 60 percent in 2020.