US technology companies deposit large amounts of cash overseas to avoid taxes. GBH believes that by the impact of tax cuts, Silicon Valley technology companies will be a lot of cash back to the United States.
For the return of cash, the report that 70% will be used for shareholder returns, the other 30% for investment spending, mergers and acquisitions, research and development.
The report said Apple holds 252 billion U.S. dollars overseas in cash. After the tax rate is reduced, Apple may take advantage of this favorable opportunity to move 200 billion U.S. dollars back to the United States and speed upstockRepurchase, dividend distribution and potential large-scale acquisitions.
In this report, GBH also stressed that Apple will be so much cash back to the United States, but also ignited the speculation that its generous acquisition of streaming media video service provider Netflix. In a recent report by Citigroup analysts analyzed Apple's potential acquisitions, including Netflix, Tesla, Disney and many other companies, the highest probability that Apple acquired Netflix, reaching 40%.