Apple has been working towards bringing back its $200 billion cash from overseas. In addition to this, the company is going to greatly benefit from the Tax Cuts and Jobs Act of 2017 as well. Thanks to the implementation of this law, the repatriation tax rate has gone down to 15.5 percent.
As noted by Venture Beat, since Apple is going to be able to bring all the foreign profits back to its home country, the country is actively looking for fruitful investments to make. The big question of, “What should I do with this much money?” is lingering upon the biggest technology company at the moment.
As was reported previously, Citi analysts speculate that Netflix and Disney are the two main companies that Apple might invest in. They are considered as being Apple’s top acquisition targets. It wouldn’t come across as a surprise if Apple acquires Netflix because the company is known to be planning on investing in the production of original content for a really long period of time.
It goes without saying that Netflix is a larger company in comparison to what Apple usually invests in. However, the kind of money that Apple is going to be possessed in the near future, does allow them to make such a hefty investment. If Apple’s acquisition of Netflix ends up being successful then the company will be in possession of over 115 million video-streaming subscribers worldwide.
The report by Venture Beat also adds that Apple might end up acquiring Disney. Disney is easily in hold of the title of being the largest entertainment brand. Disney is in possession of movies, television shows, networks, theme parks and hotels among other merchandise and retail outlets. Moreover, given that Disney’s CEO, Robert Iger is a member on Apple’s board makes this a high possibility. Other companies in the line are Tesla and Facebook’s Oculus to name a few.