Report: There’s a Chance Apple Might Buy Netflix
In this era of giant media corporations swallowing one another, another major acquisition might be on the horizon. Industry analysts are predicting that an influx of Apple cash might soon lead to a flashy purchase for the tech giant; with Netflix itself painted as a prime target.
Bear in mind that no official overtures have been made between Apple and Netflix, and media coverage of the prospect is often used to gauge interest in such landmark deals. Nonetheless – according to Business Insider – Citi analysts Jim Suva and Asiya Merchant have placed a 40% chance of Apple using a soon-to-be-unlocked infusion of $252 billion to purchase Netflix. The sum was previously under foreign jurisdiction, but the recently-passed Tax Cuts and Jobs Act provides “a one-time allowance for companies to repatriate cash stored overseas without a major tax hit.”
The report also notes that while the Citi assessment was made before Disney acquired 21st Century Fox, an Apple-Disney merger was also previously seen as a possibility. Apple would only require a third of its $252 billion assets to buy Netflix, and has attempted for years to move into the original content space. That said, Forbes threw a little cold water on the prospect, noting that Citi and Netflix will likely benefit more from the speculation than an actual deal:
Apple has already committed $1 billion towards creating new shows and their largest acquisition was buying Beats for $3 billion in 2014. Why would they spend $75 billion to buy Netflix? It would be a desperation move that would raise a white flag and signal a major organizational shift in philosophy.
We’ll see if an Apple-Netflix deal comes any closer to fruition in the coming months, so stay tuned.
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