Amazon could buy Target this year, according to a technology guru


It seems that the year 2018 will be quite moved from the business point of view. At least that is what the experts foresee from different sectors, although in all cases the large technology companies seem to be the protagonists.

The shake of Amazon (AMZN) to the retail sector seems to have only just begun. To the move that-many considered teacher-to be done with the Whole Foods supermarket chain, could follow one of even greater dimensions: the acquisition of Target (TGT).

This was stated by Gene Munster, a renowned technology sector analyst and co-founder of Loup Ventures, in a report with his predictions about the sector for this year. Loup Ventures is a venture capital company (venture capital in English) specialized in virtual reality and artificial intelligence.

"Target is the ideal offline partner for Amazon for two reasons: the type of audience they share and their manageable but large number of stores," explained Munster. "Guessing when it could happen is difficult, but seeing the value of the combination is easy," he added.

The operation would not have any problem to receive the approval of the regulators of the market, according to point from Bloomberg, since even the combination Amazon-Target would be behind the business of the giant of the Wal-Mart sector (WMT).

Munster estimates that the offer that Amazon would put on the table would be around 41,000 million dollars, which would be 15% above the current market value of Target.

Apple and Netflix

The other option that many speak of is that of an acquisition by Apple of Netflix.

Jim Suva and Asiya Merchant, Citi analysts, said in a report published by the Business Insider portal that there is a 40% chance that Apple (AAPL) will buy Netflix (NFLX) thanks to the new tax plan approved by the Trump administration to repatriate assets in other countries without suffering great penalties.

In a document dated in December, Suva and Merchant put Netflix at the top of a list of potential mergers and acquisitions of the firm founded by Steve Jobs. Apple has about 252,000 million dollars deposited in foreign jurisdictions, which represents 90% of its available cash.

"Historically, Apple has avoided repatriating cash to the United States so as not to pay high taxes," Suva and Merchant said in the report. With the tax of repatriation of 10% arranged in the tax reform, will have 220,000 million dollars to buy Netflix, since the operation "barely" would demand a third of that amount, that is, around 73,000 million dollars.

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