Apple Might Buy Netflix Following Trump Admin Tax Cuts, Citi Analysts Say

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. According to analysts from Citi, there’s a decent chance that the iPhone maker might be considering buying Netflix. It would seem that the recently passed tax cuts by the Trump administration are a major reason for making this possible.

The new prediction comes from Jim Suva and Asiya Merchant, analysts at Citi, who believe that there is a 40 percent chance that Netflix would be acquired by Apple, Business Insider reports. A lot of this is reportedly due to the major tax breaks that the Trump administration just gave to giant corporations.

In addition to the money saved by Apple with the tax cuts, companies will also have the opportunity to bring in money stored overseas back to the U.S. without major tax issues. As such, the iPhone maker will be able to bring the bulk of its $252 billion cash reserves to the country, which it can use to buy anything it wants.

Many in the industry are already aware of how Apple has struggled to plant a foothold in the movie and TV streaming business. Its past attempts have failed, but recent hiring trends and rumors lend credence to the probability that the Cupertino firm wants to try again. As such, acquiring Netflix makes sense since it is currently one of the most successful video streaming services of its kind.

As to how much a Netflix acquisition is going to cost Apple, the analysts estimate about a third of the company’s total war chest will be spent, Ubergizmo reports. If the transaction is successful, this would make the iPhone maker the undisputed dominant force in the streaming business; a huge jump from its current position.