They say if you can't beat them, buy them.
OK, they don't, but Apple may soon establish that as a new phrase, as it apparently looks to transform its place in the video-streaming market.
Reports suggest that the tech giant may be preparing to just go ahead and buy Netflix – yes, actual Netflix – and it is all thanks to Donald Trump.
Via Business Insider, Citi analysts claim that there is a 40% chance Apple could buy the streaming company as a consequence of increased cash reserves following President Trump's corporate tax cuts.
Apple will also get a massive cash boost (as if they needed more) due to a one-time allowance that enables companies to repatriate cash stored overseas without major tax implications.
In these circumstances, Citi analysts Jim Suva and Asiya Merchant suggest that Netflix is the company Apple is most likely to buy.
In comparison, Citi gave Disney's acquisition of 21st Century Fox's entertainment assets a 20-30% chance prior to the eventual takeover last month.
"The firm has too much cash – nearly $250 billion – growing at $50 billion a year. This is a good problem to have," Suva and Merchant said. "Historically, Apple has avoided repatriating cash to the US to avoid high taxation.
"As such, tax reform may allow Apple to put this cash to use."
They also estimate it would only take a third of that $250 billion to buy Netflix, and if they did go ahead, it would undoubtedly make them an even bigger player in the entertainment world.
With planned original series in the works, Apple certainly has a firm interest in original content, and you can bet your bottom dollar (or 250 billion of them) that they would jump at the chance to take control of something as gargantuan as Netflix.
However, like Disney's Fox takeover, an Apple-Netflix deal would result in more entertainment power in the hands of fewer corporations, potentially meaning less choice for people. Thanks Trump.
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