In a recent note to clients, Citigroup analyst Jim Suva named Tesla as a possible acquisition target for Apple, if the company does in fact repatriate the ~$250 billion that the company has stashed overseas.
In addition to Tesla, the Citigroup analyst also named Netflix and Walt Disney as possible targets for acquisition.
The note to investors was sent out as a result of US President Donald Trump’s previously revealed proposals to allow multinational corporations to bring back profits that have been stashed around the world in various tax havens at a tax rate of only 10%.
The note read: “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.”
Autoblog provides more: “Apple has shown clear intentions to enter the automotive segment, with a secretive group of engineers working under the Project Titan label. 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.”
As a reminder here, Tesla’s market cap recently surpassed that of GM — so any potential acquisition certainly wouldn’t be cheap at this point. Though, it still might be quite a lot cheaper than such an acquisition in a few years time.
All of that said, Elon Musk and crew may have no desire to sell. Previous coverage of such a possibility — when Tesla was in more challenging situations — implied that Elon wouldn’t like to pass on control of the company until more of Tesla’s initial master plan was achieved … and the master plan has grown considerably since then.
Image via Carblogger.it
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