Will Apple buy Tesla?

Citigroup listed seven companies as potential takeover targets for Apple Inc, including Tesla, Netflix, and Walt Disney, as a way to put its cash hoard of more than $250 billion to work. With over 90 percent of its cash sitting overseas, a one-time 10-percent repatriation tax would give Apple $220 billion for acquisitions or buybacks, Citigroup analyst Jim Suva said in a note to clients.

US President Donald Trump's tax blueprint, which was unveiled last month, proposes allowing multinationals to bring in overseas profits at a tax rate of 10 percent versus 35 percent now. "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 said.

Tesla made headlines last month for its massive market cap of about $51 billion. At the time, that meant Tesla was worth $1.7 billion more than its General Motors, America's biggest automaker. Wall Street's valuation of Tesla is based mostly on potential, not on the products and services it has, so far, delivered to customers.

Apple has shown clear intentions to enter the automotive segment, with a secretive group of engineers working under the Project Titanlabel. Apple was recently granted a permit to begin testing self-driving automobiles in California.

Other potential acquisition targets include video game developers Activision Blizzard, Electronic Arts, and Take Two Interactive Software as well as video streaming service Hulu. The analyst said the targets were screened considering five criteria - strategic fit, global scale, transaction size, few non-strategic assets and likely impact on Apple's share price.

Under pressure from shareholders to hand over more of its cash hoard, Apple recently boosted its capital return program by $50 billion, increased its share buyback program by $35 billion and raised its quarterly dividend by 10.5 percent.

Doubtful. Musk wouldn't go down easily, either. 

This idea that Apple MUST buy something big with their huge cash horde is stupid. 

Apple should buy Citigroup for speculating 

Apple has tons of cash from the Fed pumping money into their stock

Better to buy Netflix or  Disney to incorporate the movies and shows into the Apple sphere instead of building a media empire from the ground up

 

I think Steve Job's widow/family still has a shit load of Apple and Disney stock

They better not fucking consider buying any game publisher/developer. Fuck paying their stupid prices for hardware and using their fucking dumpster fire of an OS to game

 

they should invest in scarfs and golf shirts 

Tim Duncan - Apple has tons of cash from the Fed pumping money into their stock

Tesla is not a real company.

 

Mark

VinnyTheChin - 

Apple should buy Citigroup for speculating 



Yeah they better quit snitching