Apple to buy Sony?

[Scott Greczkowski]

Is it a late April fools joke? I am hearing some buzz that Apple could be looking to buy Sony...

Anyone got any info on this?

 

[dangue]

I just read about that rumor on CNN.com (financial article that reported that Sony stock was up on the rumor, not any actual info on the rumor).

 

[Steve Mehs]

God, I hope not!

 

[riffjim4069]

God, I hope not!

+2

 

[yaz96]

Can you imagine, the two most restrictive electronics giants combining their forces??

 

[TheForce]

Scott- The numbers don't add up. Apple isn't real active in M&A but if it does consider spending some of its cash on M&A it more likely will be a smaller company like Cirrus Logic (CRUS) that Apple is already spending huge amounts of money with. Cirrus Logic's largest customer is Apple, I recall 80% of it's business is Apple. The numbers make sense on this one. For hardware M&A, Cirrus is my top pick. Sony has too much value in assets and Apple would have to sell a ton of stock to get the money to buy Sony. Maybe your source was thinking just a small division of Sony but still it wouldn't make $en$e.

Sony stock is up about 17% for the past 3 months about the same as the average technologies stocks world wide. Sometimes these talking heads on TV just pull stuff out of their backside orifice with no basis in actual research or fact. Call it rumor and get away with anything because they want to bounce the stock for personal reasons. Unfortunately, I don't see any bounce due to anything Sony, much less Sony-Apple M&A.

 

[parp]

Scott- The numbers don't add up. Apple isn't real active in M&A but if it does consider spending some of its cash on M&A it more likely will be a smaller company like Cirrus Logic (CRUS) that Apple is already spending huge amounts of money with. Cirrus Logic's largest customer is Apple, I recall 80% of it's business is Apple. The numbers make sense on this one. For hardware M&A, Cirrus is my top pick. Sony has too much value in assets and Apple would have to sell a ton of stock to get the money to buy Sony. Maybe your source was thinking just a small division of Sony but still it wouldn't make $en$e.

Not that I think it's a good idea, but from a financial standpoint Apple could easily buy Sony. Sony's market cap is about $35B. Apple has about $50B in CASH. I don't think it would be a good move for Apple, though. I think they should buy Dish Network, Sprint, and Netflix!

 

[TheForce]

Out of all your suggestions, I think NetFlix has the highest possibilities. Yes, Apple could effect a hostile takeover of Sony with cash for stock to gain control of the company but why would they ever want to do that? I believe Sony has at last report 135Billion in hard assets spread out all over the world. I'm telling you the numbers don't add up. As one analyst blogged in my quick research said- It's a stupid rumor- use your noggin!

I can see Apple acquiring some of it's suppliers and maybe NetFlix Hulu and maybe even Adobe on the big side of the M&A, but not Sony, Not IBM, Not HP, and not INTEL or Microsoft. Not Ford ... While I don't think Apple would want to buy Dish Network, TIVO might be a good move but the patents are all TIVO has and we need a court decision before that can happen.

Apple needs its cash for continued R&D and funding new product startups.

 

[yaz96]

FYI - Hulu is owned by NBC-Universal and soon to be Comcast. They ain't letting go of that. They believe it's their future cash cow.

 

[TheForce]

Never overestimate the wisdom of... Comcast.

 

[Paul Wozniak]

You mean Xfinity? When is that name change going to be complete anyhow?

 

[dantheman77]

well it makes sense. apples need sun to grow.