Monday, May 8, 2017

Netflix Acquisition Allows For Apple

Apple urged its shareholders to make significant corporate acquisitions. The reason, currently the technology giant is pocketing cash in large amounts, ie US $ 256 billion.

As reported Phone Arena, Citibank analyst, Jim Suva said repatriation tax cuts of 10 percent could actually give Apple a chance to make a major acquisition. Suva also made a list of companies that are likely to be the target of Apple's acquisition.

A number of companies he writes are companies that are considered very strategic for the global scale and can have a positive impact on Apple shares.

Netflix also appeared on the top ranks of the list. According to Suva, the largest video-on-demand service provider has a 40 percent chance of being annexed by Apple. Then, Disney entertainment companies that have a 25 percent chance of being acquired.

Other companies included in Apple's stock acquisition are Hulu, Activision Blizzard, Electronic Arts, Take-Two Interactive, and Tesla. Suva calls these companies each have 10 percent chance to buy Apple.

"The right thing Apple should do is to use a third of the money it owns for the acquisition, and the rest can be used to buy stocks," Suva said.

Previously, Apple had spent US $ 211.2 billion for buyback of US $ 250. Then, in the first quarter yesterday, Apple has been distributing cash dividends worth US $ 3.2 billion and US $ 7 billion in shares To shareholders.

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