Apple buying Sony will be the Unforgettable News ...

[roadbloc]

I cannot even begin to understand why on earth Apple would buy Sony.

 

[ggg05a]

Facts, huh?



They must do nothing. This cash and short term investments (you left the latter part out) have been acquired over many years, many years of 100+% returns on the stock. Long term AAPL investors, like me, have made piles of cash. Is $51 billion somehow the tipping point for them MUST doing something?

Yeup, I've been an Apple shareholder since it was $92 a share. Honestly, I haven't had a dividend since 2005. $51 B isn't a tipping point, it is however a indicator that they do have something in mind, if not, then dear God why not redistribute it to the shareholders, or buyback the stock and turn the stock price from $3XX a share to $5XX a share overnight?

Go back and take a look at Apple's acquisitions over the years. NeXT at $400 million is the largest.

Yeup, at $404 million it was the largest. Typically Apply buys companies and integrates them into existing product lines. With Apple making money hand over first, and making the stock price go up no doubt, think about what the stock could be if some of the money was reinvested in the company in the form of a vertical acquisition. It frustrates me that with so much money in the bank, as a shareholder they aren't doing anything with it. Buy someone out, buyback the stock, or redistribute it. You as a shareholder should be frustrated by this money's inactivity.

Why would Apple want Sony. Way, way too much baggage there. Same for Nintendo especially if you follow your premise of them needing a controller. Something tells me the company that brought the magic mouse and trackpad to market can do a controller if needed.

The PS3, and really not the console, as I'm sure Apple could build something much better than the PS3, it would probably work well, have a great controller, be simple, and very up-to-date. Apple could care less about the Playstation as it sits now. They want access to the developers, the game base, the franchises built upon the PS3, the exclusivity contracts, the ability to go toe to toe with the xBox in a lucrative market.

Now you have Google buying Sony and you expect to be taken seriously?

Again, another company with more money in the bank than the Vatican. Maybe you missed the part where I called this pure speculation????

 

[KeriJane]

Speculation -

A) Sony/Nintendo. Apple wants a piece of the video game market . . . badly. Their ability to tap into this market with iPod/iPad games has been a major source, and will continue to be a major source of revenue from AppStore sales. Apple has realize that there is still lots of money in this market, but sadly not with a keyboard and mouse, but rather with a controller. Apple has no plans, and there are currently no rumors in the rumor mill about Apple building a console, and their closest competitor is the Apple TV, which doesn't compete with the 360 or PS3. The market is already over saturated, and Sony, with a market cap of around $40 Billion, is an acquisition Apple could make tomorrow, and pay for the whole thing in cash. Sony has been poorly managed for a decade now.

B) Comcast. With over 27 million subscribers this would be a great means of establishing a contract based semi-consistent revue stream from the market. This would also be a great way of getting iTV sales from 250,000 - 500,000 annually to tens of millions. With a market cap, being similar to that of Sony, again Apple could pay for this out of pocket.

Personally, I would imagine a Sony acquisition. The company has great IP, and a fantastic brand name behind it. If Apple doesn't pick them up, expect Google to. I expect an acquisition Q3 of 2011.

That's some interesting speculation that makes sense. It'll be interesting to see if Apple gets either Sony or Comcast.

Have Fun,
Keri