We knew that Apple is sitting on a huge stockpile of cash. Billions of dollars. Literally. But we weren’t aware of just how valuable that cash stock is until Citibank told us that Apple might be planning to buy Netflix.
Yup, you read that right.
Netflix is on the very top of the list of companies that Apple might want to acquire.
A Citibank analyst revealed that a possible change in the US tax code could result in severe losses to Apple in terms of extra tax. The best way for Apple to protect its “assets” would be to spend some of that cash. As CultofMac explains —
“Apple cash reserves are said to be more than $250 billion, money that is largely overseas and subject to high taxes under current law. However, a proposed 10 percent tax on “repatriated” money could entice Apple to spend a little money.”
And Netflix seems to be the favourite:
Citibank puts the odds of a Netflix buyout at 40 percent, according to analyst Jim Suva in a note to clients titled ‘Addressing the Problem of Too Much Cash.’
Citibank is not the first to speculate this “I need to spend more” situation for Apple. Just last month, RBC Capital’s Amit Saryanai suggested that Disney would be a great company for Apple to acquire.
Citibank hasn’t completely written off Disney either. According to them, there’s a 25% chance that Apple will buy Disney.
Disney. Which is what, only the biggest producer of animated films on the planet! Sure, let’s go buy Disney.
“Citi also identified Hulu, Tesla, Activision Blizzard, Electronic Arts and Take-Two Interactive but put the at 10 percent or less.”
Wait, Apple is also capable of buying Tesla? Not the car. The company! That’s just a ridiculous amount of money that Apple is sitting on.
Source: Phone Arena and Seeking Alpha