“Apple could dramatically increase its dividend yield if it repatriates foreign profits under U.S. corporate tax changes being considered by the Trump administration, one analyst says,” Patrick Seitz reports for Investor’s Business Daily.
Repatriation could allow Apple to substantially boost its regular dividend without impacting strategic flexibility. If the U.S. allows offshore cash to be repatriated at a reduced tax rate, Apple could comfortably double or triple its regular dividend and still make a meaningful acquisition without impairing its balance sheet. — Pacific Crest Securities analyst Andy Hargreaves
“In addition to raising its dividend, Apple could use overseas cash to bolster its services business with an acquisition, Hargreaves said,” Seitz reports. “Hargreaves thinks internet television network Netflix would be an attractive acquisition target for Apple. ‘An acquisition of Netflix would give Apple a strong growth story in services that are not tied directly to the iPhone, a leadership position in a massive global market, an upgrade in executive talent in video, and incremental revenue and profit growth going forward,’ Hargreaves said.”
Read more in the full article here.
MacDailyNews Take: Just because Apple could buy Netflix, doesn’t mean they should. However, Apple should definitely consider an “upgrade in executive talent in video,” by all means. They don’t have to buy Netflix to accomplish that. They just need to hire somebody who can negotiate deals as SlingTV, DirectTV, and PlayStation Vue executives have done already.
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
Happy St. Patrick’s Day!
Get your green beers ready and.. Hoist!
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