Analysts at Citi have suggested Apple could look to acquire Netflix now that the US has passed a new corporate tax bill.
JIm Suva and Asiya Merchant suggest there’s a 40 per cent likelihood of Apple looking to purchase the SVoD service.
Under the new tax rules, Apple will be able to repatriate about $220 billion in cash to the US.
“Historically, Apple has avoided repatriating cash to the US to avoid high taxation,” said Suva and Merchant.
“As such, tax reform may allow Apple to put this cash to use. With over 90 per cent of its cash sitting overseas, a one-time 10 per cent repatriation tax would give Apple $220 billion for mergers and acquisitions or buybacks.”