"The firm has too much cash - almost $250 billion - growing at $50 billion a year".
"As reported by Business Insider, Suva and Merchant told clients, "[Apple] has too much cash-nearly $250 billion-growing at $50 billion a year. Like many multinational corporations, Apple avoided repatriating profits from outside the U.S.to avoid being taxed a second time. Apple wants to get benefited from this by using its $252 billion cash stored in foreign jurisdiction. There are 40% chances that Apple will acquire Netflix according to CiTI analysts Jim Suva and Asiya Merchant.
If a couple of Citi analysts are to be believed, there is a 40% possibility of Apple purchasing video streaming platform Netflix.
Many Netflix fans aren't sure if a purchase of the streaming giant by Apple would be a good thing or not. The tax cut, as well as a one-time allowance for companies to repatriate cash held overseas without a major tax fee, could open up Apple's path to buy new companies. The company has realized that the film and television industry is very different from music industry and its video offering is not up to the level of offerings made by its competitors Netflix and Amazon.com Inc (NASDAQ: AMZN). Now that we know that such a deal can happen, the question is, will it? Users can download on-demand movies and shows from the company's iTunes portal.
He argued that the streaming firm is "actually being more judicious" about how much it spends on original content, contrary to the many headlines reporting that it's willing to spend $20 million per original TV episode.
Could Apple be eyeing a monumental buyout of Netflix? That money helped Apple lock down an order for a reboot of the Steven Spielberg executive-produced Amazing Stories, as well as a coveted scripted drama about morning TV shows set to star Jennifer Aniston and Reese Witherspoon.
It was reported a year ago that it planned to rent California's Culver Studios for the shooting of original TV shows and movies, as it has plans to invest up to $1 billion in TV and movie productions.
There were many rumors previous year that Apple will be coming up with its own video streaming subscription-based service to compete with Netflix and Amazon Prime Video which were affecting iTunes popularity.