A Citi report has recently voided the popular notion and contrary to the reports of Apple launching a video subscription product in 2018 to counter Netflix, it has announced that Apple could possibly buy the entertainment troop by taking the influence of US President Donald Trump’s corporate tax cut.
According to Citi analysts, Jim Suva and Asiya Merchant:
The firm has too much cash – nearly $250 billion (roughly Rs. 15.9 lakh crores) – growing at $50 billion (roughly Rs. 3.18 lakh crores) a year. This is a good problem to have.
This technically means- There is a 40% likelihood that Apple will acquire Netflix. Under the new taxing rules, the tech giant will be able to repatriate about $220 billion (roughly Rs. 14 lakh crores) in cash to the US.
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 percent of its cash sitting overseas, a one-time 10 percent repatriation tax would give Apple $220 billion (roughly Rs. 14 lakh crores) for mergers and acquisitions (M&A) or buybacks.
A report in Business Insider Australia said:
iTunes has been a huge hit for the company, but viewers have migrated increasingly to services like Netflix, Amazon or Hulu to watch their favourite shows leaving Apple struggling to offer a compelling TV or movie offering.
In September 2017, reports spilt in that Apple might lease the Culver Studios in California as it plans to pour $1 billion (roughly Rs. 63,000 crores) into TV and movie productions.
The battle for best movie scripts and television projects intensified between tech giants in the Silicon Valley. Google-owned YouTube is already producing original television series and Amazon has won Oscars already.
The iPhone inventor has already hired topmost Hollywood talent duo Jamie Erlicht and Zack Van Amburg to commence its Hollywood drive and is reportedly expanding its profile by a new TV show that will cast Reese Witherspoon and Jennifer Aniston in pivotal roles.