Apple could be preparing to buy Netflix, say Citi analysts

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But, in the end, one should note that the analysts are pointing at a 40% chance of this happening, and with other ambitious programs such as the autonomous vehicle project in hand, the Apple buying Netflix still remains a faint prediction.

With the $1 billion budget, Apple is said to be looking to match the high-quality output of networks like HBO and wants to compete with both cable companies and streaming services.

Apple has much of its stockpile in foreign regions, which it was previously unable to transfer to the US. But now according to a report by Citi analysts, Apple might buy the popular video streaming company.

Before Disney acquired Fox's studio and TV platforms, Citi predicted there was a 20-30 per cent chance Apple would acquire it.

"The firm has too much cash - almost $250 billion - growing at $50 billion a year". Apple is said to have as much as $250 billion dollars at its disposal, and Suva and Merchant figure that it would need only a third of that hoard to buy up Netflix. The cut in corporate taxes and one-time allowance for companies to repatriate cash stored overseas without a major tax hit will give Apple, which has about $252 billion in cash at mostly foreign jurisdictions, a way to bring money back to the U.S. and make acquisitions. Under President Trump's newly passed tax cuts, however, companies are given a one-time allowance to repatriate overseas cash without a major tax hit. "With over 90% of its cash sitting overseas, a one-time 10% repatriation tax would give Apple $220 billion for M&A or buybacks". However, the question here is, despite the huge cash reserves, does it make sense for Apple to buy Netflix?

For the first time, Apple has recently announced it would be heading into the content creation realm with a scripted series starring Jennifer Aniston and Reese Witherspoon.

Start placing your bets now.