Citi Analysts Says Apple May Acquire Netflix

Discussion in 'Visual Arts' started by Vidiot, Jan 1, 2018.

  1. Vidiot

    Vidiot Now in 4K HDR! Thread Starter

    Location:
    Hollywood, USA
    Citi analysts say that there is a
    40% likelihood of Apple acquiring Netflix


    [​IMG]
    Apple CEO Tim Cook and Netflix CEO Reed Hastings

    by Jim Edwards
    Business Insider 1/1/2018

    There is a 40% likelihood that Apple will acquire Netflix now that US President Trump's corporate tax cut has been passed, according to Citi analysts Jim Suva and Asiya Merchant.

    The cut in corporate taxes, along with a one-time allowance for companies to repatriate cash stored overseas without a major tax hit, will give Apple a much larger cash warchest to buy new companies. Apple has about $252 billion in cash, much of it in foreign jurisdictions, which previously it was unable to bring back to the US.

    Apple will be able to repatriate about $220 billion in cash to the US under the Trump tax cut. The company would need only one-third of that to snap up Netflix.

    more details:
    Business Insider: There is a 40% chance Apple will acquire Netflix, according to Citi
     
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  2. PaulKTF

    PaulKTF Forum Resident

    Location:
    USA
    40% isn't very high odds. Methinks this rumor is being put out there for other reasons.
     
    MikaelaArsenault and mikeyt like this.
  3. Vidiot

    Vidiot Now in 4K HDR! Thread Starter

    Location:
    Hollywood, USA
    The article goes into some interesting factors. Apple's gotta spend the $250B on something or else the taxes go up. Netflix' market cap right now is about $82B, and Apple could cover that with money to spare, and they would still have more than $700B profit ($170B of which would be cash).
     
    MikaelaArsenault and McLover like this.
  4. PaulKTF

    PaulKTF Forum Resident

    Location:
    USA
    Yes, but then Apple would be competing with themselves (iTunes/Apple TV + Netflix). How does that make sense?
     
  5. Vidiot

    Vidiot Now in 4K HDR! Thread Starter

    Location:
    Hollywood, USA
    Nothing to stop them from combining it into one service. They did it with Beats -> Apple Music.
     
    MikaelaArsenault and sunspot42 like this.
  6. j.barleycorn

    j.barleycorn Forum Resident

    There was nothing stopping them from buying Netflix before this new tax cut if they really wanted it.
     
    MikaelaArsenault and Deesky like this.
  7. PaulKTF

    PaulKTF Forum Resident

    Location:
    USA
    Apple used to be a bloated, directionless company. They are in serious danger of heading that way again and now there is no Steve Jobs to come in to save the day.
     
  8. Bill Hart

    Bill Hart Forum Resident

    Location:
    Austin
    Is Apple producing video content? That has been a boon to Netflix (and to Amazon).
     
  9. The Wanderer

    The Wanderer Forum Resident

    Location:
    NYC
    Apple also has some other problematic PR and legal distracting issues
     
  10. forthlin

    forthlin Forum Resident

    So if Apple gets Netflix and Disney gets Hulu/Fox...who wins? Stated another way: Does Disney buy Apple or does Apple buy Disney? Or does Amazon buy Walmart and the "Buy 'n Large" brand from Wall-E become reality? ;)
     
  11. Deesky

    Deesky Forum Resident

    There have been rumors about the possibility of Apple acquiring Netflix for some time. I doubt the tax cuts would make it any more likely (it's always been a low odds proposition).
     
  12. McLover

    McLover Forum Resident

    Location:
    East TN
    I can see Netflix being a replacement for Apple video. And being a multi-platform cash cow long term for Apple. It has synergy in the Apple universe.
     
  13. PaulKTF

    PaulKTF Forum Resident

    Location:
    USA
    I wouldn't be shocked to see Amazon go after Walmart at some point.
     
    MikaelaArsenault and forthlin like this.
  14. vince

    vince Stan Ricker's son-in-law

  15. forthlin

    forthlin Forum Resident

    There's also a possibility that Jay-Z & Beyonce may end up ruling the world. E-Bey anyone?
     
  16. Pete Sorbi

    Pete Sorbi Active Member

    everything is just going to be one giant company at some point....and the customer service line will be terrible.....
     
    Robert C and longdist01 like this.
  17. Deesky

    Deesky Forum Resident

    What makes you think that there will be a customer service line?
     
  18. Benno123

    Benno123 Forum Resident

    Location:
    Ohio
    Fantastic, does this mean when the Netflix app gets too old Apple will push out an update and slow the app down?
     
    marcb, DHamilton, goodiesguy and 9 others like this.
  19. Bill Hart

    Bill Hart Forum Resident

    Location:
    Austin
    We had a running joke when we were traveling through the Greek Isles with friends many years ago-- it was all one big corporation. The guy who met you off the ferry was pushing the hotel his uncle owned, but if you didn't like that one, the next best was the one owned by his brother in law, who also had the taverna. And so on. This just has many more zeros attached to it. And hopefully, better Taramasalata. :)
     
  20. Chris DeVoe

    Chris DeVoe Forum Resident

    That would be the worst thing ever. Have you seen just how dreadfully Apple software like iTunes runs on non-Apple platforms?

    Then again, my experience in the late 90s working for the analyst firm Forrester Research left me with little respect for the whole sector. The unofficial company motto was "We only have to be right slightly more than half the time." Their most egregious error was "Amazon.toast."
     
  21. Deesky

    Deesky Forum Resident

    Yes, yes I have! My one and only Apple product was the iPhone 3GS (because it was clearly a superior innovation at the time).

    So I had to run iTunes software on my PC to load music, etc. That was the worst peice of crap malsoftware I ever had the misfortune to use. It was slow and laggy, often locking up. I hated it with a passion. Luckily when I eventually upgraded my phone, other brands had caught up in the smartphone stakes, so I went for a Samsung Note II, which you could just plug into the PC with a USB cable and navigate its file system - no buggy walled garden software required!
     
    kwadguy, McLover, goodiesguy and 7 others like this.
  22. Chris DeVoe

    Chris DeVoe Forum Resident

    Absolutely! Or they'll break the NetFlix app on every TV, competitor box and toaster out there. Only the AppleTV will actually work.
     
    Benno123 likes this.
  23. PaulKTF

    PaulKTF Forum Resident

    Location:
    USA
    iTunes doesn't just suck on Windows, it sucks on Macs too. It is in desperate need of a massive UI and functionality overhaul.
     
  24. Chris DeVoe

    Chris DeVoe Forum Resident

    What's so funny is that everyone give Microsoft crap, but their Android apps are excellent.
     
  25. Chris DeVoe

    Chris DeVoe Forum Resident

    They would have to burn it to the ground and start over.
     
    McLover, goodiesguy and showtaper like this.

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