Originally posted by DaveGee
Today, Apple has a market cap of over 6 billion dollars (with apx 4B in CASH) while nVidia has a market cap of 3.2B but that's only PART of the story...
You have to rewind 6 short months to get the rest... In January nVidia hit it's 52 week high of 72.66 and then the bad reports started to hit.. Missing earning and issues with Microsoft (over xBox) plus the latest ATI stuff looking 'better' than the latest nVidia stuff have all contributed to the company stock nose-dive (plus other things I'm sure but since I don't really follow the video card sector at all... I'm not one to say.) anyway they are now trading at $23 or less than 1/3 of what they once were just 6 short months ago (translation company market cap is 66% less than it was in Jan 2002).
If you just look at 'todays numbers', sure Apple could buy them up with the cash they have in the bank... But, Apple is in no position to even come close to buying nVidia since the nVidia stockholders would never go for a buyout without a pretty big premium over todays share price (like say a total of a $40 per share offer as minimum maybe even more) 6 months is a short time to loose that much value and nVidia has bounced back before so many are 'into the stock' for much more than the 23 it's selling for now (thus the demand for a premium) and Apple could never swing that. Now if nVidia were to stay at these low levels for a year or so OR continue to drop in price for the next 6 months+ maybe then Apple could snap them up... But then you'd have to ask yourself are they still worth buying...
I myself would rather see Apple continue to buy companies that haven't yet hit the 'radar screen' as they have been doing quite a bit of these days. Buy em before they get bigger and use them to help Apple get bigger... It's not as easy as it sounds but I have a feeling some of Apples latest buyouts will be showing us some benefit sooner rather than later... (Not like that Raycer buyout that is STILL bugging me!) One from last year? Two years ago?? Gave us iDVD and another (also two years ago?) gave us FinalCut Pro both really good things for Apple... The deals they have been doing as of late are in a different catagory... Super high end stuff than screams for speed... All I can say is Apple had better have something to feed that kinda software.
D