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Chances of Apple Acquiring Netflix in 2018 Are Increasing

by  in TV News Comment
Chances of Apple Acquiring Netflix in 2018 Are Increasing

The likelihood that Apple will acquire Netflix is now at 40%. Per a report from Citi analysts, President Trump’s corporate tax cut is the reason for this increase in interest.

According to BusinessInsider, the new corporate tax cut — “along with a one-time allowance for companies to repatriate cash stored overseas without worrisome hits” — will provide Apple with more money, which could be put towards purchasing new companies. Per the report, Apple has around $252 billion, with a majority of it stored under foreign jurisdiction. Apple would need only “a third of that cash” to purchase the streaming giant.

RELATED: Netflix Issues Statement on Net Neutrality Repeal

Talks surrounding Apple possibly buying Netflix have run rampant for the past year or so; however, at the time, a deal between the two seemed highly unlikely. With the corporate tax cut, however, the circumstances have changed. As of right now, it doesn’t appear the two have even entered any sort of official talks, meaning a deal is still a ways off from happening, though Apple appears to be inching closer to doing so.

While streaming services such as Hulu and Netflix have taken off over the years with the aid of original content, Apple has struggled to grow its platform outside of iTunes. Purchasing Netflix, which just last year announced plans to spent $1 billion in original programming this year, would allow Apple the opportunity to expand its reach.

Apple’s potential acquisition of Netflix comes after Fox and Disney have struck a deal for the Mouse House to acquire a majority of Fox. That deal, of course, is still about a year out from being finalized, though it looks to be just one of many possible acquisitions to take place this year.

Tags:
apple, netflix
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