A GBH research note seen by us predicts that Apple is likely to take advantage of the tax break on repatriated overseas cash to bring back around $200B of its $252B foreign cash hoard.
The firm says the company is likely to spend the cash in three ways …
Predictably, the idea of a large cash influx has rekindled speculation that Apple could buy Netflix.
With Apple & Cook set to repatriate roughly $200 billion of cash based on our estimates we believe accelerated buybacks, another dividend hike, and potentially larger M&A will be the trifecta of benefits shareholders could expect to see in 2018.
The firm acknowledges that such a large acquisition would be out of character for Apple, but doesn’t let that stop it reiterating the oft-floated idea.
The burning question on the Street’s mind is does Cook make a big bet with this infusion of cash and do a larger deal (e.g. Netflix) to catalyze and jump start its streaming video/content business.
The Disney-Fox merger at least seems to have taken that one off the table.
