If a couple of Citi analysts are to be believed, there is a 40% possibility of Apple purchasing video streaming platform Netflix. But if a pair of Citi analysts are correct, there is a chance that Apple will top that record by a factor of approximately 34. The largest acquisition that Apple has made by itself is the $3 billion it spent to purchase Beats Audio. As such, the iPhone maker will be able to bring the bulk of its $252 billion cash reserves to the country, which it can use to buy anything it wants. While all of it makes sense on paper, there's nothing to suggest that Apple has even considered the idea, let alone explored the option in discussions with Netflix. 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. "This is a good problem to have", Suva and Merchant were quoted as saying. This money is now being stored overseas, but Apple will have an opportunity to move the cash back to the United States without suffering extensive tax penalties.
"Historically, Apple has avoided repatriating cash to the U.S. to avoid high taxation". It's estimated that Apple would only need a third of that to buy Netflix.More news: YouTuber Logan Paul Sorry for Posting Vid of Dead Body
A report in business insider said that iTunes has been a huge hit for the company, but viewers have migrated increasingly to services like Netflix, Amazon or Hulu to watch their favourite shows leaving Apple struggling to offer a compelling TV or movie offering.
Furthermore, Apple has reportedly invested $1 billion in producing unique video content, which the Wall Street Journal says could yield up to 10 new shows.More news: Kim Jong Un warns enemies of 'Nuclear Button'
In an attempt to try its hands at content creation, Apple previous year hired Sony Pictures Television presidents Jamie Erlicht and Zack Van Amburg to lead its Hollywood push. In November of 2017 Apple revealed its first effort into scripted series by announcing two projects, with one revealed to star Hollywood luminaries Reese Witherspoon and Jennifer Aniston.More news: Serena Williams loses to Jelena Ostapenko in comeback match