“Don’t expect Apple to buy Netflix this year with the billions of dollars it repatriates – despite that widely shared analyst report this morning that offered almost even odds of such a deal,” Mark Sullivan writes for Fast Company.

“The new GOP tax bill, signed by the president in 2017’s final days, gives Apple the option to bring its huge $250 billion of cash held offshore back to the U.S. at a far lower tax rate (15.5% versus the 35% in the old law),” Sullivan writes. “A couple of Citi analysts, Jim Suva and Asiya Merchant, believe Apple may use a big chunk of that repatriated money to buy Netflix. They give the deal a 40% chance.”

“Apple won’t bring its entire cash hoard back to the U.S., a source with knowledge of the matter tells Fast Company. It will bring back only about half in 2018,” Sullivan writes. “My hunch is that Apple will continue using its largesse in Hollywood to buy or create new video content. Because the company’s services business is already doing so well, and growing as hoped, Apple will feel no pressure to leap to the top of the subscription video market with an acquisition of Netflix. It’s much more likely that Apple will use its newly repatriated money to buy back stock and reward shareholders with dividends.”

Read more in the full article here.

MacDailyNews Take: Yup.

What is unique about Netflix? A handful of TV series are not worth $40 billion. Apple is perfectly capable of taking on Netflix without having to buy them, deal with integrating their employees, etc. Until Apple actually buys Netflix, we’ll keep saying that Apple will buy Netflix for the same reason they bought Palm. — MacDailyNews, May 27, 2016

Another $125 billion in buybacks would be seismic.MacDailyNews, November 18, 2016

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