Apple was previously unable to bring its foreign earnings back to the US due to federal tax law, but President Trump's newly passed corporate tax cut offers companies a one-time allowance for companies to repatriate cash stored overseas without a major tax hit, Business Insider reports.
"The firm has too much cash - almost $US250 billion - growing at $US50 billion a year. This is a good problem to have", Suva and Merchant wrote to clients. Before that upgrade, another analyst suggested there's a relatively high probability we will see Apple buying Netflix. Suva and Merchant estimate the deal would cost the company about a third of the cash freed up by Trump's tax plan, leaving Apple with plenty of assets to develop further content for the platform should they acquire it. Acquiring Netflix will also allow Apple to get a large base of original content.
Many Netflix fans aren't sure if a purchase of the streaming giant by Apple would be a good thing or not. And Apple's method of content delivery - while robust and market-defining within the iPhone and Mac ecosystems - doesn't align with the way viewers are now streaming Netflix and its competitors.More news: Mega Millions jackpot at $361M for winning numbers drawing tonight
It was reported previous year 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. Share your views in comments and stay with us for more updates on this market situation.
As one of the richest companies in the world, Apple certainly has the financial clout to buy just about anything it sets its eyes on.
Apple in November ordered two seasons of a scripted video series starring Jennifer Aniston and Reese Witherspoon that doesn't have a launch date. In the near future, however, Apple might spend a lot more on a major acquisition. Google-owned YouTube is already producing original television series, whereas Amazon has won Oscars for "Manchester by the Sea" show. Nollen believes Netflix can save money by spending less on licensed content. Heads turned when Netflix announced that it would devote $7 billion to $8 billion to content in 2018, but it might still be shocking to hear that Netflix is going to release 80 original movies in 2018.