Analysts believe there is a strong chance that tech giant Apple will acquire streaming service Netflix, according to a report by Business Insider. Jim Suva and Asiya Merchant of Citi Research said there was a 40% likelihood of such an acquisition in the light of recent tax reforms introduced by American President Donald Trump.
According to the report, the analysts said Trump’s decision to slash corporate tax rates could give Apple “a much larger potential cash warchest to buy new companies.”
The analysts ranked Netflix as Apple’s most likely acquisition in a note that they sent to their clients in December. “The firm has too much cash – nearly $250 billion – growing at $50 billion a year,” Suva and Merchant said in the report. “This is a good problem to have.”
The report, which was formulated much before Disney’s acquisition of 21st Century Fox, had also pegged the likelihood of a an Apple-Disney deal at 20%-30%.
According to reports, a deal with Netflix would be a logical step forward for the company that is taking the plunge into the streaming space with original content. The technology company has acquired the rights for a morning show featuring Jennifer Aniston and Reese Witherspoon and the reboot of Steven Spielberg’s Amazing Stories. Apple is planning to invest $4.2 million dollars by 2022 to ramp up its original offerings, according to reports.