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Trump Makes Way For Apple To Buy Netflix

Citi analysts predict there is a 40% chance Californian-based Apple could acquire streaming service giant Netflix, following a recent corporate tax reform granted by US President Trump.

The acquisition will enable Apple to make a notable dent in the video streaming realm, complimenting its existing Apple TV hardware. It will also further intensify competition against Google and Amazon, who are pursuing Amazon Prime Video and YouTube respectively.

Asiya Merchant and Jim Suva informed Business Insider that the new tax cut could result in Apple utilising $220 billion for the acquisition of several valuable companies:

“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. With over 90% of its cash sitting overseas, a one-time 10% repatriation tax would give Apple $220 billion for M&A or buybacks”

“The firm has too much cash – nearly $250 billion – growing at $50 billion a year. This is a good problem to have”.

The analysts reportedly predict that Apple will only require about a third of this cash to buy out Netflix.

They also tip the likelihood of Disney purchasing Netflix at 25%, and game publishers, Take Two and Activision, at 10%

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