Who Apple Should Buy With Their $7 Billion? [Archive]

AtHomeBoy_2000

Jan 20, 2006, 12:43 PM

I thought this was rather interesting...

What do Adobe, TiVo, Sun, Novell, Universal, Palm, Pixar and Real all have in common? Think hard, what could be the connecting thread? Give up? Well, in searching the internet it seems that a good number of people seem to think that Apple should buy one or more of these companies. Think it’s crazy? Well, Apple has $7 billion dollars in cash and $67 billion in market cap, so if Steve wanted to go on a shopping spree here is what it would cost him.....
Personally, i vote TiVo. The deals with all the cable companies is great and all, but they own the patents to a LOT of great features. Apple might be wise to incorporate that into a Mac mini DVR.

MisterMe

Jan 20, 2006, 01:44 PM

I thought this was rather interesting...

Personally, i vote TiVo. The deals with all the cable companies is great and all, but they own the patents to a LOT of great features. Apple might be wise to incorporate that into a Mac mini DVR.This person is throwing stuff against the wall to see what sticks. Every single takeover target is problematic in its own way. Of those mentioned, Adobe is the best bet. It has a strong product line with excellent synergies to Apple's own. TiVo suffers from having a name that is generic for DVRs. A lot of people own cable/satellite dish provider-supplied DVRs that they call TiVo, but are not. Sun is interesting. Its corporate culture is closest to Apple's. It has a similar legion of fans. But, it is in serious danger of being a relic of bygone times. Novell--is it still in operation? Universal? Ever heard of NBC Universal, 80% owned by General Electric? Oh, you mean Vivendi Universal, which fell on such hard times that it sold most of itself to General Electric? Palm? Is this for the PDA market which continues to see declines in sales? Or, is this for PalmOS, which is even losing Palm as a customer? Real? How does buying the company that everyone loves to hate help Apple? I mean, really--what does Real bring Apple that it doesn't already have?

zap2

Jan 20, 2006, 01:49 PM

The only one that would be worth buy(IMO) would be TiVo becuz a Mac OSX with a Tivo thing in FrontRow would but Mac OSX in a place to become the center of life in a house:eek:

pknz

Jan 20, 2006, 02:01 PM

I would like to see Adobe stay independent as I like their products.

Thanatoast

Jan 20, 2006, 02:11 PM

I don't like the Tivo idea. Every time I've used a tivo aat a friend's house, it's always been screwey. I think Apple could make a much better interface for recording tv. They've already got a 5 button remote that controls 4 different media apps. Why would they want to bring on somebody else's legacy, non-intuitive (IMO) interface?

I fully encourage them to do the Mac mini-dvr thing, though. Just make it easy and integrated, ala the iPod. I'd be all over it.

MacFan782040

Jan 20, 2006, 02:13 PM

Just curious, how much cash does MS have?

edesignuk

Jan 20, 2006, 02:14 PM

Just curious, how much cash does MS have?Last I heard, something like $65bn :eek:

bousozoku

Jan 20, 2006, 02:16 PM

I'd like Apple to buy full Quality Assurance and Documentation departments. They don't need to invest their money outside of the company at this point.

If they bought one of those companies, it should be Palm, to get BeOS.

WildCowboy

Jan 20, 2006, 02:20 PM

Just curious, how much cash does MS have?

At the end of last quarter, they had $40 billion. They're using some of their cash for a stock buyback program that will cost a total of $30 billion by the end of this year...they had spent $11 billion on that by the end of the last quarter.

geese

Jan 20, 2006, 02:40 PM

This person is throwing stuff against the wall to see what sticks. Every single takeover target is problematic in its own way. Of those mentioned, Adobe is the best bet. It has a strong product line with excellent synergies to Apple's own. TiVo suffers from having a name that is generic for DVRs. A lot of people own cable/satellite dish provider-supplied DVRs that they call TiVo, but are not. Sun is interesting. Its corporate culture is closest to Apple's. It has a similar legion of fans. But, it is in serious danger of being a relic of bygone times. Novell--is it still in operation? Universal? Ever heard of NBC Universal, 80% owned by General Electric? Oh, you mean Vivendi Universal, which fell on such hard times that it sold most of itself to General Electric? Palm? Is this for the PDA market which continues to see declines in sales? Or, is this for PalmOS, which is even losing Palm as a customer? Real? How does buying the company that everyone loves to hate help Apple? I mean, really--what does Real bring Apple that it doesn't already have?

But arnt most companies bought up when they have problems? That when they are cheap to gobble up, the point being is that you can turn that company around and make money from it.

If Apple bought Real, Quicktime could become a more aggressive alternative to Windows Media. PErhaps merge the 2 products and services, and increase Apples marketshare of on-line media.

I think Real gets a worse rep then it deserves. The streaming quality (from the BBC website anyway) is far superior in quality then the windows equivelent. The Real Player on the Mac is actually quite nice and simple, no adware or any annoyances, unlike the QT player.

The problem with Real is that it is hopeless at marketing itself. with the rise of online music and the mp3 player, Real really did miss the boat as is being squeezed out by Apple and MS. If Apple bought Real, it could be a stronger player in the streaming market.

Project

Jan 20, 2006, 02:43 PM

I thought Apple now have $8.7b in cash reserves

MisterMe

Jan 20, 2006, 02:49 PM

But arnt most companies bought up when they have problems? That when they are cheap to gobble up, the point being is that you can turn that company around and make money from it.The most expensive thing is the world is the one you need the least when you buy it. Apple doesn't need any of those companies in trouble. Their problem is that few others need them, as well.
If Apple bought Real, Quicktime could become a more aggressive alternative to Windows Media. PErhaps merge the 2 products and services, and increase Apples marketshare of on-line media.
....
Apple would receive the same benefit that you suggest if Real just died. If Real just died, it would cost Apple nothing. What sense does it make to spend $7 billion for something that is can be had for nothing?

geese

Jan 20, 2006, 03:00 PM

Apple would receive the same benefit that you suggest if Real just died. If Real just died, it would cost Apple nothing. What sense does it make to spend $7 billion for something that is can be had for nothing?

For $7bn it wouldnt be worth it, but if Real did go under, what would Reals former customers do ? (i'm thinking of the BBC here, as an example) Would they necesserily goto QT instead? Or would MS woo them?

If Real could be bought for relitivly little, it could be worth it, just for the extra marketshare- managed properly it could help QTs marketshare.

But as you say, not for $7bn.

Metatron

Jan 20, 2006, 03:22 PM

Sun...buy sun.

It is worth it, then adobe.

Software and Hardware excellence.

mdavey

Jan 20, 2006, 03:45 PM

TiVo suffers from having a name that is generic for DVRs. A lot of people own cable/satellite dish provider-supplied DVRs that they call TiVo, but are not.

That isn't always a bad thing. Think iPod ;)

Sun is interesting. Its corporate culture is closest to Apple's. It has a similar legion of fans. But, it is in serious danger of being a relic of bygone times.

I actually hold the exact opposite viewpoint.

Sun's culture is actually quite different to Apple's and this would likely be the most difficult part of the challenge of merging the two businesses. Sun is a big OpenSource player and believes that the value is on the server and in the service (hence their mantra "The network is the computer". Apple believes that the value is in the client and the software (focus on iPod rather than iTunes, focus on Mac OS X over Mac and Xserve). Sun tires to be very open and transparent, they encourage most of their employees to 'blog'. Apple is famous for its secrets - even Jobs doesn't have a public weblog at the moment.

Conversely, Sun technology such as JavaCard, their T1 microprocessor and Solaris continue to provide Sun with unique value. They struggled just after Y2K and during the global recession, but they are set to make a huge comeback just as Apple did. Finally, there is actually very little overlap between Sun products and Apple products right now - they are almost complementary to each other.

However, I think Apple would be best of hanging onto their cash reserves for the moment and perhaps creating an alliance sub-organization with one or more companies (think of iPlanet, the Sun|Netscape alliance, after AOL bought Netscape).

cgratti

Jan 20, 2006, 03:53 PM

Do not buy Adobe, I like Adobe products as is, now TiVo would be a great product if Apple bought it and intergrated it into the Mac mini's with DVR.

Diatribe

Jan 20, 2006, 04:03 PM

I'd like Apple to buy full Quality Assurance and Documentation departments. They don't need to invest their money outside of the company at this point.

Hehe.Couldn't have said it better myself. :D

Although, if they were to buy Adobe and shut down the windows software it would generate A LOT of Mac switchers. ;)

slu

Jan 20, 2006, 04:23 PM

Although, if they were to buy Adobe and shut down the windows software it would generate A LOT of Mac switchers. ;)

The only issue I see with that is that is that I am sure that Adobe makes much more money off windows software and you would have to pay for that revenue when you aquire the business.

So it would be risky to pay to aquire a revenue stream and then shut it off completely. You'd have to be damn sure that you'd sell enough extra Macs to make up for the loss of the Adobe windows revenue. Which may or may not be possible, but it would take a big study to find out.

Diatribe

Jan 20, 2006, 04:27 PM

The only issue I see with that is that is that I am sure that Adobe makes much more money off windows software and you would have to pay for that revenue when you aquire the business.

So it would be risky to pay to aquire a revenue stream and then shut it off completely. You'd have to be damn sure that you'd sell enough extra Macs to make up for the loss of the Adobe windows revenue. Which may or may not be possible, but it would take a big study to find out.

Especially with such a big company as Adobe. The thing is though that there are almost no competitors. If they would shut down support within a year you'd have a lot of people switching because they have to. It's risky but as long as there are no competitors it's more than possible. After all photoshop users upgrade almost every version anyway.

belvdr

Jan 20, 2006, 11:12 PM

Sun...buy sun.

It is worth it, then adobe.

Software and Hardware excellence.

Sun is going down fast. Our company won't even purchase Sun equipment because it is too expensive for what you get. Their support has been going downhill for some time now.

virus1

Jan 21, 2006, 02:45 AM

Especially with such a big company as Adobe. The thing is though that there are almost no competitors. If they would shut down support within a year you'd have a lot of people switching because they have to. It's risky but as long as there are no competitors it's more than possible. After all photoshop users upgrade almost every version anyway.
although it would only be a year or two after apple drops support when another company hops up with a new product, after that HUGE gap in the market. many companies would probably jump at that. microsoft might even have a go at it.

sethypoo

Jan 21, 2006, 02:54 AM

I don't want Apple to buy anyone for at least three years, provided they are still well in the black three years from now. They need to further expand their iPod line up to generate income, and start to work on making Mac's as cool to people with iPods as iPods are. If Apple can double or even triple their marketshare and the number of Mac's they're selling year over year for three years, then I would feel good about them buying another company.

Glenn Wolsey

Jan 21, 2006, 02:58 AM

Apple still have work to do before taking anything else on, they are not that strong and dominant yet.

Enough said from me.

EricNau

Jan 21, 2006, 03:36 AM

although it would only be a year or two after apple drops support when another company hops up with a new product, after that HUGE gap in the market. many companies would probably jump at that. microsoft might even have a go at it.
But most people couldn't go a year or two without using an Adobe product, and after everyone switched and realized how good Mac OS X is, the damage to Windows will have been done.

Diatribe

Jan 21, 2006, 03:50 AM

But most people couldn't go a year or two without using an Adobe product, and after everyone switched and realized how good Mac OS X is, the damage to Windows will have been done.

Exactly.

Counterfit

Jan 21, 2006, 04:22 AM

They need to further expand their iPod line up to generate income
Er, expand where?
I think they should invest some of the money into R&D, and some into QC at the factories, and then hold on to the rest, Just In Case. Hey, I know him!

rdowns

Jan 21, 2006, 05:46 AM

Apple shouldn't buy any company unless they have products or technology to help Apple in their current marketing strategy. Tivo is the only one that fits the bill. It would help Apple extend their digital lifestyle strategy. That being said, does Apple really need them? Others have produced DVRs that are close to Tivo in functionality (hold off Tivo zealots, I own one and love it). Apple could do a DVR without Tivo.

Sun, Novell, Adobe - I see no benefit in any of them. Real- an argument could be made that they could help Apple expand its music offerings and Quicktime.

Aeolius

Jan 21, 2006, 06:58 AM

Others have produced DVRs that are close to Tivo in functionality (hold off Tivo zealots, I own one and love it). Apple could do a DVR without Tivo.

Others have surpassed TiVO in functionality; my cable-ready HDTV dual-tuner SA 8300, provided by Time-Warner, is proof of that. TiVO's interface still runs circles around that clunky mess of unintelligible screens my DVR provides, however.

Still, my TiVos are not hooked up at the moment. When faced with the choice, I prefer function over form. Fortunately, with Apple, we get both.

mojohanna

Jan 21, 2006, 07:24 AM

The only one that would be worth buy(IMO) would be TiVo becuz a Mac OSX with a Tivo thing in FrontRow would but Mac OSX in a place to become the center of life in a house:eek:
Apple doesn't need Tivo. DirecTv just moved away from Tivo because of the cost of licensing. Eliminate the licensing and move that cost to your bottom line profit. Tivo is nothing more than a user interface. We all know who is the king of developing killer user interfaces!

California

Jan 22, 2006, 04:05 AM

Apple should buy Pixar and then Buy Disney.

Not sure about monopoly rules with all the Pixar/Disney/Apple/iPod stuff though.

Counterfit

Jan 22, 2006, 04:19 AM

I don't think Apple could afford Pixar.

BenRoethig

Jan 22, 2006, 11:20 AM

I don't think Apple could afford Pixar.

There's also the conflict of interest issues.

1. Avid (mainly for Digidesign/ M-audio)

2. Elgato Systems

3. Aspyr.

4. Blizzard software.

5. Wideload Games and possibly the rights to Marathon and the Bungie name from Microsoft.

sam10685

Feb 4, 2006, 07:17 AM

all those companies are good but i think apple should buy microsoft.

Timepass

Feb 4, 2006, 11:49 AM

iMeowbot

Feb 4, 2006, 12:02 PM

If they bought one of those companies, it should be Palm, to get BeOS.
They just had an opportunity to do that and passed (http://www.palmsource.com/press/2005/111405_access.html).

bobber205

Feb 4, 2006, 12:03 PM

ChrisA

Feb 4, 2006, 12:08 PM

Personally I am on the line that they use that money on self investing. One thing is getting there shipping times down. And to stop releasing hardware that not really out yet. (Example Mac Book Pro it not advaible to the public yet. You can just "Pre-order" them right now) But a huge thing is get there shipping times down and better. People should not have to wait a month for stuff they want to buy.

They don't need money to do that. What you see as a "long shipping time" is just when Apple chooses to announce the product They could get the shipping times down to dead-zero by simply not anounng anything and putting out in the Apple stores for people who walk in to just notice on thier own. So you walk in the store in March and it goes like this...

You: "what's that?",
Saleman" "It's the new Mac Book Pro",
You: "when did you start seling that?"
Salesman " We've had it here for three days now."

Would that be better? There be zero waiting.
They can choose any amount of time between a product anouncement and the date of first availability. It's a bussines decisioon. If they anouce to early customers put off purchases waiting for the new produc

Timepass

Feb 4, 2006, 06:07 PM

They don't need money to do that. What you see as a "long shipping time" is just when Apple chooses to announce the product They could get the shipping times down to dead-zero by simply not anounng anything and putting out in the Apple stores for people who walk in to just notice on thier own. So you walk in the store in March and it goes like this...

You: "what's that?",
Saleman" "It's the new Mac Book Pro",
You: "when did you start seling that?"
Salesman " We've had it here for three days now."

Would that be better? There be zero waiting.
They can choose any amount of time between a product anouncement and the date of first availability. It's a bussines decisioon. If they anouce to early customers put off purchases waiting for the new produc

Again I repeat it. Let not look at the mac book one. They could be more honest in there practics (by just stating it a pre order). But besides that I think you dont have to go though these forums very far to find people complaining about apple shipping time and delays from apple on getting there stuff. That what I think they should get fixed. Currently apple gets away with very poor shipping habits. I think it sad when people start saying it apple they make you wait.

I sorry but apple way of shipping is just sad. Just look though these forums for a little while and you will find plenty of threads on it.

Glen Quagmire

Feb 4, 2006, 06:28 PM

Not "who, but "what". Mindshare. Use some of that money to educate people in the ways of Apple. I was at my local PC store this afternoon, just for a browse, and the amount of people in there buying the rubbish on sale was, well, depressing. People happily (?) buying Compaqs. Huge shelves of anti-virus/anti-spyware/firewall programs (seriously - 20 feet or something ridiculous).

The Mac section consisted of:

A prehistoric-looking iBook G4. Filthy. Not turned on. Encased in see-through plastic so you can't steal it.
Powerbook G4 15". Same as the iBook. About as much use as a paperweight.
Two Mac Minis, running OS X 10.4.2. Nothing running, just in Finder. Hooked up to two no-name LCDs at 1024x768.
iMac G5 17" with iSight. The Office trial had expired, so you couldn't try out Word or Excel. About six trillion applications in the dock.

They had a boxed copy of Office 2004 next to one of the Minis, but the rest of the software (iWork '05, iLife '05, one copy of Tiger and a load of games) was around 15 feet away, buried amongst a load of PC software.

Sure, Macs are hot and all that, but they seemed to have gone out of their way to make them look as unenticing as possible. How are Apple supposed to gain market share with store displays like this?

More Apple Stores, please, especially over here in Europe. More of a media presence. More advertising for things other than the iPod.

truz

Feb 6, 2006, 12:03 PM

Honestly,
I think apple needs to purchase valve so they can make hl3 for macos only for the first year or two and make them pc users go out and buy a mac ;)

sushi

Feb 6, 2006, 12:24 PM

I thought this was rather interesting...

Personally, i vote TiVo. The deals with all the cable companies is great and all, but they own the patents to a LOT of great features. Apple might be wise to incorporate that into a Mac mini DVR.
Right now, I would say not a darn thing.

There is no need to rush out to purchase something that will not fit into Apple's future plans.

A long time ago, Apple had way to many irons in the fire and it almost cost them their existance.

Now Apple is much more focused and overall has been introducing good products. They need to keep this up to expand their market.