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Here Are the Companies Apple Could Acquire With Its Cash Hoard

Apple is repatriating its overseas cash hoard, giving the company the opportunity to do whatever it wants with that money once it pays taxes. And now one noted Apple tracker is guessing at the big buys the company might make with all that cash.

Gene Munster, a longtime Apple analyst who now serves as managing partner at venture capital firm Loup Ventures, believes Apple could acquire augmented reality startup Magic Leap and fitness-focused company Peloton with its newfound cash windfall. Speaking to Business Insider about Apple’s plans, Munster added that he doesn’t believe Apple will engage in “any big M&A deals.”

Apple announced on Wednesday plans to repatriate its nearly quarter-trillion in overseas cash. The move will cost the company $38 billion in taxes, but will also free up the sum to be spent. Apple has already said that it plans to use billions of the cash to bring on 20,000 new employees and invest heavily in the U.S.

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But Munster, along with many other industry-watchers, believes Apple’s cash could also be used on acquisitions. And while speculation has been running rampant for months that Apple could make a major acquisition, including buying Netflix or Tesla, Munster sees it differently.

He believes Magic Leap, which would likely cost Apple several billion dollars, has tapped into the augmented-reality headset market and could attract Apple, which has already said that it’s investing heavily in that space. Peloton, which has build a multi-faced fitness company that offers everything from workout hardware to classes on how to improve health, could also help Apple accelerate its health-focused operations.

According to Business Insider, Munster believes the lion’s share of Apple’s freed-up cash will be sent back to shareholders. When Apple reports earnings on February 1, he said, the company could announce a $70 billion share buyback program and a $12 billion dividend. He didn’t say how he arrived at those figures.