Citigroup lists seven companies as potential targets for Apple to acquire


According to Reuters: Hulu, Electronic Arts, Activision, Take Two Interactive Software, Netflix, Walt Disney, Tesla were listed by Citigroup as these companies may be targets for  Apple, Inc. (NASDAQ: AAPL) to acquire. 

The tech giant has over 90 percent of its cash overseas, where a one-time fee of 10 percent due to repatriation taxes.  Apple has $220 million for acquisitions/buybacks, Jim Suva, Citigroup analyst said in a note to clients.  Donald Trump’s tax blueprint that was released last month proposed that multinationals may bring profits from overseas at a tax rate of 10 percent instead of the current 35 percent. 

"Since one of the new administration's top priorities is to allow US companies to repatriate overseas cash at a lower tax rate, Apple may have a more acute need to put this cash to use," Suva stated.  According to Thomson Reuters StarMine, Suva is rated 3/5 stars for his recommendations on Apple. 

These listed companies were found with five different criteria: global scale, transition size, non-strategic assets, impact on Apple’s share value and strategic fit.

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