Apple (AAPL)'s $15 Billion Spending Spree
Apple (AAPL) has spent the past few years minting money via iPod sales, and is now doing the same with the iPhone. That's allowed the company to accumulate a $15 billion cash hoard -- more than IBM, HPQ, INTC or GOOG, Fortune points out.
The magazine wonders what Steve Jobs intends to do with all that dough, and soberly discusses possible uses: Dividends, stock buybacks, a new corporate campus. Fine, but boring. (Even more boring: BusinessWeek's Arik Hesseldahl soberly explains that Apple won't do anything with the money, because it needs the cash as a hedge against supply chain problems). What if Steve wanted to make a big splash, and go on an M&A bender?
Fortune points that Apple could easily swallow Netflix (NFLX), Tivo and Circuity City (CC) and have plenty of cash left. But let's think bigger: $15 billion can go along way. For instance, Steve could purchase Warner Music Group (WMG) and the other three big music labels, or at least a controlling stake in all of them. Or if he wanted to give his online video store a boost, he could go Hollywood: Buying Lions Gate Films (LGF) plus MGM would still leave him about half his cash pile. What else should be on his shopping list? Let us know in comments below.
The magazine wonders what Steve Jobs intends to do with all that dough, and soberly discusses possible uses: Dividends, stock buybacks, a new corporate campus. Fine, but boring. (Even more boring: BusinessWeek's Arik Hesseldahl soberly explains that Apple won't do anything with the money, because it needs the cash as a hedge against supply chain problems). What if Steve wanted to make a big splash, and go on an M&A bender?
Fortune points that Apple could easily swallow Netflix (NFLX), Tivo and Circuity City (CC) and have plenty of cash left. But let's think bigger: $15 billion can go along way. For instance, Steve could purchase Warner Music Group (WMG) and the other three big music labels, or at least a controlling stake in all of them. Or if he wanted to give his online video store a boost, he could go Hollywood: Buying Lions Gate Films (LGF) plus MGM would still leave him about half his cash pile. What else should be on his shopping list? Let us know in comments below.
The MacMini is everything that Apple TV isn't. If they could just stick an HDMI port on the MacMini everything would be dandy.
Hmm...a "dismal failure" that has sold more units than TiVO!
Apple TV is a great device now and will only get better in the future when Apple releases additional functionality and provides rentable, HD video content.
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Apple should acquire YAHOO and then Ask.com from IACI to get into the Search business. Google and Microsoft are slowly encroaching on Apple's turf or will soon.
They would start with a 38% share in search, add 10% thru Apple marketing magic / Iphone set-up to put them within sight of Google's 58%. This would be a serious body-blow landed on Microsoft (Bill Gates) that would leave them staggering.
Apple is a complementary fit to Yahoo. More experienced in business with the vision and strategic sense that Yahoo management lacks. An Apple-Yahoo type would be a much better fit in terms of company culture. A spin-off would be better in order to attract the brightest with cheap options, to work in the most exciting company with the most potential since....Google.
If they buy something make it Wifi related and develop something killer in that category so their laptops have a huge advantage.
But if Mr. Jobs did go on a drunken spree, I think he buys Banana Republic and has them produce nothing but black turtlenecks and blue jeans.