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Apple Adds Digital Magazine Service to Portfolio

One of the most powerful big four tech companies has made another move to strengthen it’s position in the marketplace.

Tech giant and luxury goods provider, Apple, has added Texture to it’s portfolio. Texture is a digital magazine subscription app company that was founded in 2010. It provides unlimited monthly access to articles from more than 200 magazines and has a subscriber base of “hundreds of thousands” of users.

Apple has acquired 100% of the company and staff. Texture was under the leadership of an all-male executive team of 8 (according to the Texture website).

Global independent investment bank Moelis & Co advised Texture.

How does an acquisition work?

An acquisition happens when one company (typically a larger company) buys another company with cash, stock, or a combination of the two in order to sharpen focus in an industry.

Where did Apple get the money to fund the acquisition?

Here’s a possibility: Apple is bringing back it’s cash from abroad and using it to finance acquisitions.

In January 2018, Apple announced that it would bring back the majority of the cash that it held abroad and make investments in the United States. What’s the incentive behind this move? Trump’s Tax Reform. It allowed for a one-time repatriation of corporate cash held abroad at a lower tax rate. This provision saves Apple approximately $43 billion in taxes, according to the Institute on Taxation and Economic Policy. That’s a large stash of cash that could be used to fund this acquisition and many more.

Apple has $252 billion of it’s total cash of $269 billion held abroad. This accounts for 94% of its total cash held outside the United States.

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Featured Image: Courtesy of Apple

Disclaimer: Wealthy Women Daily is solely education and informational, and is not intended to give investment or trading advice of any kind. Not all asset classes are suitable for all investors. Wealthy Women Daily is a research academy that provides you with the data and analysis you need to make an informed investment decision. 

About Charlene Rhinehart, CPA

Charlene Rhinehart is a Certified Public Accountant, Founder of Wealthy Women Daily, and Editor-in-Chief of the Dividend InvestHer and The Wealthy Woman Investor. Charlene is currently the Chair of the Illinois CPA Society Taxation Individual Committee. With over a decade of experience in the financial services industry, Charlene is one of the few leaders who design insights specifically for the woman investor. Charlene’s work has been featured in a variety of publications including the Huffington Post, Black Enterprise, and the American Institute of Certified Public Accountants. In 2019, Charlene released her book “Dividends Are a Queen’s Best Friend”, on Amazon.

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