According to reports, Apple is set to repatriate approximately $200 billion in foreign cash as a result of the GOP tax reform bill.
A GBH research note signals that Apple is set to bring back approximately $200 billion of its $252 billion foreign cash portfolio as a result of tax breaks that the company will now receive.
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.
According to other reports, Apple will likely pay a 15 percent tax on any of the funds that are returned from overseas. “With over $250 billion stashed overseas, Apple stands to pay roughly $40 billion under the deemed repatriation provision of the new law,” the report reads.
The report argues that the GOP tax bill is quite friendly to international corporations such as Apple, allowing them to return foreign cash to the U.S. at a low tax rate.
The return of such a significant amount of cash to the United States has led to speculation that the tech giant is looking to acquire Netflix. “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 GBH research note reads.