Greg's bite: Apple's acquisition speculation
TweetFollow Us on Twitter

Greg's bite: Apple's acquisition speculation

By Greg Mills

The press is full of speculation as to what Apple might be into regarding the acquisitions department. Not many companies have over 50 billion dollars sitting around. While the income from the savings amounts to a lot even at a fairly low interest rate, Apple might make more in a sound investment in the form of buying the right companies.  

Sony stock bumped up on the rumor that Apple might buy them. With a market cap of about 35 billion dollars Apple could acquire them but the big question is why? I speculated Sony might be a good buy for Apple three years ago in an article published by MacDailyNews.com.  Here is the link to that article.  http://www.macdailynews.com/index.php/weblog/comments/15331/opinion/  .

The reasons it might make sense then still make sense today. Sony is now worth about twice what it was during the market crash of a couple of years ago, but the company is still depressed considering its history and potential.  

There are a number of reasons a big company like Apple might want to buy a well know competitor, like Sony. The notion of investing in a troubled but potentially profitable company, betting you can fix what is wrong and sell it like a real estate fixer upper a year or two down line, might be valid for a lot of firms. However, Apple is looking at things more strategically. What would make Apple stronger?  

Parts companies such as flash memory companies might be good for vertical growth. Make your parts at cost instead of buying them from someone else. Apple now has in-house chip designers.  They might be interested in making their own chips and microprocessors. I have read where SanDisk (with a current market cap of about US$9 billion) about might be a possible target for Apple.

A number of the corporate components of Sony are interesting and fit Apple nicely, while some aren't such a good fit. The TV business is an example. Large screen TVs per se, have become almost a commodity item with most of the profit squeezed out by fierce competition. The margins on standard big screen TV sets is not meaningful to the likes of Apple.  

Apple has been looking hard at the living rooms of consumers as a place they want to compete.  The Apple TV is a way into that arena. Some sort of value added Apple/Sony big screen or 3D HDTV entertainment system might be interesting.

The Sony patent portfolio is interesting (25,000 US patents) as is ownership of the Blu-ray and PlayStation platforms. The music and movie collection alone are also something Apple could use to stock the iTunes store with exclusive video and music content. 

Apple almost fell into the game market with the iOS platform and the iTunes store. Nintendo now considers Apple it's biggest potential competitor and is struggling to compete with the iOS devices. If Apple bought Sony and fixed the PlayStation hardware and tweaked the darn PlayStation OS it would be an improvement. I have a PlayStation and it has a horrible OS. It takes so many actions to shut it down I commonly just cold cock it by killing the power to it.  And it uses something like 80 watts when it is asleep?!!!! 

Apple is growing into the biggest source for downloading digital content of all kinds. Owning the Sony Movie library, Sony Music and its studios would put Steve Jobs in the driver's seat on a ton of new exclusive content. Add his majority ownership of Disney and Steve Jobs would really have a tremendous source of content no one else could match.  

Add NetFlix to the mix for is customer base and stand back as Apple stock goes through the $500 per share price point in months. NetFlix is now worth about $6 billion and is "digital video content on wheels." Apple might be well off buying Sony for content and NetFlix for digital delivery. Steve would kill the "DVD in the mail" thing right off. Even NetFlix plans to go to 100% streaming soon.

From Sony's point of view, the new management from Apple might be just the thing thing they need to recover their lost business charm. How the Japanese government would view Apple taking over Sony is another issue. Apple could buy (in some fashion that might be creative trades instead of all cash) Sony, NetFlix and SanDisk and still have money in the bank.

That's Greg's bite for today.

(Greg Mills, is a Faux Artist in Kansas City. Formerly a new product R&D man for the paint sundry market, he holds 11 US patents. He's working on a solar energy startup, www.CottageIndustrySolar.com using a patent pending process of turning waste dual pane glass into thermal solar panels used to heat water. Greg writes for intellectual web sites and Mac related issues. See Greg's art web site at www.gregmills.info ; His email is gregmills@mac.com )

 
AAPL
$100.96
Apple Inc.
-0.83
MSFT
$47.52
Microsoft Corpora
+0.84
GOOG
$596.08
Google Inc.
+6.81

MacTech Search:
Community Search:

Software Updates via MacUpdate

WhatRoute 1.13.0 - Geographically trace...
WhatRoute is designed to find the names of all the routers an IP packet passes through on its way from your Mac to a destination host. It also measures the round-trip time from your Mac to the... Read more
Chromium 37.0.2062.122 - Fast and stable...
Chromium is an open-source browser project that aims to build a safer, faster, and more stable way for all Internet users to experience the web. FreeSMUG-Free OpenSource Mac User Group build is... Read more
Attachment Tamer 3.1.14b9 - Take control...
Attachment Tamer gives you control over attachment handling in Apple Mail. It fixes the most annoying Apple Mail flaws, ensures compatibility with other email software, and allows you to set up how... Read more
Duplicate Annihilator 5.0 - Find and del...
Duplicate Annihilator takes on the time-consuming task of comparing the images in your iPhoto library using effective algorithms to make sure that no duplicate escapes. Duplicate Annihilator detects... Read more
jAlbum Pro 12.2 - Organize your digital...
jAlbum Pro has all the features you love in jAlbum, but comes with a commercial license. With jAlbum, you can create gorgeous custom photo galleries for the Web without writing a line of code!... Read more
jAlbum 12.2 - Create custom photo galler...
With jAlbum, you can create gorgeous custom photo galleries for the Web without writing a line of code! Beginner-friendly, with pro results Simply drag and drop photos into groups, choose a design... Read more
Quicken 2015 2.0.4 - Complete personal f...
Quicken 2015 helps you manage all your personal finances in one place, so you can see where you're spending and where you can save. Quicken automatically categorizes your financial transactions,... Read more
iMazing 1.0 - Complete iOS device manage...
iMazing (formerly DiskAid) is the ultimate iOS device manager with capabilities far beyond what iTunes offers. With iMazing and your iOS device (iPhone, iPad, or iPod), you can: Copy music to and... Read more
Xcode 6.0.1 - Integrated development env...
Apple Xcode is Apple Computer's integrated development environment (IDE) for OS X. The full Xcode package is free to ADC members and includes all the tools you need to create, debug, and optimize... Read more
Apple Safari 7.1 - Apple's Web brow...
Apple Safari in OS X Mavericks brings you all-new ways to find and enjoy the best of the web. It works with iCloud to give you a seamless browsing experience across all your devices. It looks out for... Read more

Latest Forum Discussions

See All

View Source – HTML, JavaScript and CSS...
View Source – HTML, JavaScript and CSS 1.0 Device: iOS Universal Category: Utilities Price: $.99, Version: 1.0 (iTunes) Description: View Source is an app plus an iOS 8 Safari extension that makes it easy to do one key web developer... | Read more »
Avenged Sevenfold’s Hail To The King: De...
Avenged Sevenfold’s Hail To The King: Deathbat is Coming to iOS on October 16th Posted by Jessica Fisher on September 19th, 2014 [ permalink ] Just in time for Halloween, on October 16 Avenged Sevenfold will be launching | Read more »
Talisman Has Gone Universal – Can Now be...
Talisman Has Gone Universal – Can Now be Played on the iPhone Posted by Jessica Fisher on September 19th, 2014 [ permalink ] | Read more »
Tap Army Review
Tap Army Review By Jennifer Allen on September 19th, 2014 Our Rating: :: SHOOT EM ALLUniversal App - Designed for iPhone and iPad Mindless but fun, Tap Army is a lane-based shooter that should help you relieve some stress.   | Read more »
Monsters! Volcanoes! Loot! Epic Island f...
Monsters! Volcanoes! Loot! | Read more »
Plunder Pirates: Tips, Tricks, Strategie...
Ahoy There, Seadogs: Interested in knowing our thoughts on all this plundering and pirating? Check out our Plunder Pirates Review! Have you just downloaded the rather enjoyable pirate-em-up Plunder Pirates and are in need of some assistance? Never... | Read more »
Goat Simulator Review
Goat Simulator Review By Lee Hamlet on September 19th, 2014 Our Rating: :: THE GRUFFEST OF BILLY GOATSUniversal App - Designed for iPhone and iPad Unleash chaos as a grumpy goat in this humorous but short-lived casual game.   | Read more »
A New and Improved Wunderlist is Here fo...
A New and Improved Wunderlist is Here for iOS 8 Posted by Jessica Fisher on September 19th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Evernote Update for iOS 8 Adds Web Clipp...
Evernote Update for iOS 8 Adds Web Clipping, Quick Notes, and More Posted by Ellis Spice on September 19th, 2014 [ permalink ] | Read more »
Apple Names Ultimate Productivity Bundl...
Apple Names Ultimate Productivity Bundle by Readdle as the Essential Bundle on the App Store Posted by Jessica Fisher on September 19th, 2014 [ permalink | Read more »

Price Scanner via MacPrices.net

Mac Pros available for up to $260 off MSRP
Adorama has Mac Pros on sale for up to $260 off MSRP. Shipping is free, and Adorama charges sales tax in NY & NJ only: - 4-core Mac Pro: $2839.99, $160 off MSRP - 6-core Mac Pro: $3739.99, $260... Read more
13-inch 2.6GHz/256GB Retina MacBook Pros avai...
B&H Photo has the 13″ 2.6GHz/256GB Retina MacBook Pro on sale for $1379 including free shipping plus NY sales tax only. Their price is $120 off MSRP. Read more
Previous-generation 15-inch 2.0GHz Retina Mac...
B&H Photo has leftover previous-generation 15″ 2.0GHz Retina MacBook Pros now available for $1599 including free shipping plus NY sales tax only. Their price is $400 off original MSRP. B&H... Read more
21″ 2.7GHz iMac available for $1179, save $12...
Adorama has 21″ 2.7GHz Hawell iMacs on sale for $1179.99 including free shipping. Their price is $120 off MSRP. NY and NJ sales tax only. Read more
iOS 8 Adoption Rate Slower than iOS 7, 6, Hit...
Apple began pushing out iOS 8 updates to eligible devices around 1pm ET on September 17, 2014. However, unlike with iOS 7, which boasted a wide variety of differences from its predecessor iOS 6, in... Read more
LIkely Final Definitive OS X 10.9.5 Mavericks...
Apple has released what will almost certainly be the last incremental version number update of OS X 10.9 Mavericks (save for futire security updates) before OS X 10.10 Yosemite is released next month... Read more
Fingerprints, Apple Pay and Identity Theft Wa...
On Sep 9th, CEO Tim Cook unveiled Apple Pay, along with the new iPhone 6 and iWatch. Apple Pay is a newly developed technology that utilizes a near field communication (NFC) to enable customer... Read more
Amazon Introduces Two All-New Kindles
Amazon on Thursday introduced the 7th generation of its Kindle dedicated e-reader device: Kindle Voyage, its top-of-the-line e-reader, and the new $79 Kindle, with a 20% faster processor, twice the... Read more
Save up to $300 on the price of a new Mac wit...
Purchase a new Mac or iPad at The Apple Store for Education and take up to $300 off MSRP. All teachers, students, and staff of any educational institution qualify for the discount. Shipping is free,... Read more
13-inch 2.8GHz Retina MacBook Pro available f...
B&H Photo has the new 2014 13″ 2.8GHz Retina MacBook Pro on sale for $1699.99 including free shipping plus NY sales tax only. They’ll also include free copies of Parallels Desktop and LoJack for... Read more

Jobs Board

Project Manager, *Apple* Financial Services...
**Job Summary** Apple Financial Services (AFS) offers consumers, businesses and educational institutions ways to finance Apple purchases. We work with national and Read more
*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.