There is a 40% likelihood that Apple will acquire Netflix according to Citi analysts Jim Suva and Asiya Merchant. Thanks to US President Donald Trump passing a corporate tax cut.

“The firm has too much cash – nearly $250 billion – growing at $50 billion a year. This is a good problem to have,” Suva and Merchant said to Citi clients. “Historically, Apple has avoided repatriating cash to the US to avoid high taxation. As such, tax reform may allow Apple to put this cash to use. With over 90% of its cash sitting overseas, a one-time 10% repatriation tax would give Apple $220 billion for [merger and acquisition] or buybacks.”

Apple would need only a third of that cash to buy Netflix, the pair say.

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