or Connect
AppleInsider › Forums › Investors › AAPL Investors › Steve Jobs: Apple will use $51B for big moves, not 'stupid' ones
New Posts  All Forums:Forum Nav:

Steve Jobs: Apple will use $51B for big moves, not 'stupid' ones

post #1 of 193
Thread Starter 
Apple Chief Executive Steve Jobs hinted this week that his company is eyeing a few major acquisitions with its massive $51 billion in cash, with just "one or more" deals possible in the near future, rather than a spending spree.

In his appearance during Apple's conference call for the fourth fiscal quarter of 2010, Jobs was asked by analyst Tony Sacconaghi of Bernstein Research what his company plans to do with its $51 billion in cash and reserves. The analyst inquired whether Apple would return some of the money to investors in the form of a dividend, a possibility that Jobs dismissed as always.

"We strongly believe one or more strategic opportunities will come along we're in a unique position to take advantage of," Jobs said. "We don't let the cash burn a hole in the pocket or make stupid acquisitions. We'd like to continue to keep our powder dry because we think there are one or more strategic opportunities in the future."

Jobs' comments have led to speculation as to what kind of company Apple could be looking to buy. Given Jobs' reported recent meeting with Mark Zuckerberg, chief executive of social networking site Facebook, a potential deal between the two has been presented as a possibility.

Peter Kafka of MediaMemo suggested that such a deal could be a good fit for Apple and its stash of $51 billion in cash, given Apple's desire to fend off Google.

"It's a company that has yet to compete with or brush up against Apple in any significant way," he wrote. "And it's one that Apple seems unlikely to be able to move aside, even if it wanted to. And it's one that's already competing directly with Google, which has to make Jobs like it even more."

Apple has shown a great deal of patience with its cash and reserves, despite the fact that analysts and investors have attempted to push the company on the subject. In February, at an annual shareholder meeting, Jobs said Apple would use the money for "big, bold" risks. At the time, its war chest was at $40 billion.

But Apple has made a number of relatively small key acquisitions in recent years, including two digital mapping companies (Placebase and Poly9), personal assistant software developer Siri, chipmaker Intrinsity, and digital streaming music service Lala.

While the benefits of many of those purchases have not yet been fully realized in Apple's products, the company's acquisition of Quattro Wireless in early 2010 paved the way for the launch of the iAd mobile advertising network in July. Apple has said it expects iAds to take up half of the mobile ad market by the end of 2010.
post #2 of 193
Facebook would seem to be a strange buy to me. Social network users are incredibly flickle, and I think Facebook is a short term thing. MySpace seemed worth paying a lot of money for to News International a couple of years ago, then everyone moved to Facebook and it seemed like a lousy buy.

I could see the same happening to Facebook.
post #3 of 193
Quote:
Originally Posted by PaulMJohnson View Post

Facebook would seem to be a strange buy to me. Social network users are incredibly flickle, and I think Facebook is a short term thing. MySpace seemed worth paying a lot of money for to News International a couple of years ago, then everyone moved to Facebook and it seemed like a lousy buy.

I could see the same happening to Facebook.

probably a slowdown, but i think facebook will be around awhile. but facebook just seems so un-apple.
post #4 of 193
Of what benefit would Facebook be to Apple? What value would be added to be worth the enormous cost of buying them?
GIGO. The truth in all of life.
Reply
GIGO. The truth in all of life.
Reply
post #5 of 193
buy google.
post #6 of 193
Buy ADOBE !!!!
post #7 of 193
Quote:
Originally Posted by PaulMJohnson View Post

Facebook would seem to be a strange buy to me. Social network users are incredibly flickle, and I think Facebook is a short term thing. MySpace seemed worth paying a lot of money for to News International a couple of years ago, then everyone moved to Facebook and it seemed like a lousy buy.

I could see the same happening to Facebook.

I am not so sure Facebook is the next Myspace.

Myspace always had weak links between users. The people you "friended" on MySpace was not your next door neighbor, your classmate, or your mother.

Facebook has strong links. Your friends on facebook are people you meet on a daily basis. Folks you go on holidays with, colleagues, and distant relationships. It will not be as easy to break links with these people as it was for Myspace.

I have, for example, almost completely stopped using FB. Yet, I keep a profile available, because its the best (often only) way to keep in touch with distant friends and family. The only time I log on is when I get a message, and want to reply. Despite disliking facebook tremendously, its really unlikely I will ever delete my profile (worst case, i use it only to get people's numbers, etc).
post #8 of 193
Quote:
Originally Posted by screamingfist View Post

probably a slowdown, but i think facebook will be around awhile. but facebook just seems so un-apple.

I am not thrilled simply because I personally don't like FaceBook's UI or much else about how it works. However, if this did happen maybe Apple could make a silk purse out of the pig's ear and I can see iTunes and FaceBook having some strong potential ties.
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
post #9 of 193
Quote:
Originally Posted by DarenDino View Post

Buy ADOBE !!!!

That might be a good idea although I suspect it might have to be a hostile take over .
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
post #10 of 193
Quote:
Originally Posted by katastroff View Post

buy google.

That would definitely be hostile!
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
post #11 of 193
Doesn't Microsoft already have a stake in Facebook?
post #12 of 193
Quote:
Originally Posted by OriginalG View Post

Doesn't Microsoft already have a stake in Facebook?

Yes I believe this is the case, they invested $240M a while back and PayPal invested too. I doubt that would matter.
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
post #13 of 193
Quote:
Originally Posted by DarenDino View Post

Buy ADOBE !!!!

Yeah - I agree! That would be so funny and stir up the entire tech community in an unprecedented way. Simply because Steve would make true what he said recently: kill flash.

(This doesn't mean I think it was the best move of Apple to abandon it - but this would surely kill it.)
post #14 of 193
Quote:
Originally Posted by OriginalG View Post

Doesn't Microsoft already have a stake in Facebook?

yes but your enemy's enemy is your friend. Msft and Apple versus Google? Bring it on.
post #15 of 193
Quote:
Originally Posted by AppleStud View Post

yes but your enemy's enemy is your friend. Msft and Apple versus Google? Bring it on.

Or is that Bing it on!
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
post #16 of 193
Quote:
Originally Posted by MacApfel View Post

Yeah - I agree! That would be so funny and stir up the entire tech community in an unprecedented way. Simply because Steve would make true what he said recently: kill flash.

Indeed.
A. Kill Flash, and
B. terminate CS development for Windows.
post #17 of 193
Quote:
Originally Posted by MacApfel View Post

Yeah - I agree! That would be so funny and stir up the entire tech community in an unprecedented way. Simply because Steve would make true what he said recently: kill flash.

(This doesn't mean I think it was the best move of Apple to abandon it - but this would surely kill it.)

It is a pretty neat idea when you think of the talent at Adobe and the need for more apps for Mac and iPad in the creative arena that could be trusted to be 100% Apple.
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
post #18 of 193
I have a feeling that Jobs recent dinner with the FB CEO, there probably will be some sort of collaboration in the future. I don't think Apple will buy FB, don't see why. They should buy Adobe though. Either way tomorrow should be interesting!
post #19 of 193
Quote:
Originally Posted by katastroff View Post

Indeed.
A. Kill Flash, and
B. terminate CS development for Windows.

No, not terminate CS for Windows just make them less capable and late.
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
post #20 of 193
Quote:
Originally Posted by AppleInsider View Post

Apple Chief Executive Steve Jobs hinted this week that his company is eyeing a few major acquisitions with its massive $51 billion in cash, with just "one or more" deals possible in the near future, rather than a spending spree ...

He's probably still got a hard on for Sony and will buy them out when they start to seriously decline. Either that or he's saving up to buy a movie company like Paramount.
post #21 of 193
No, Apple will not buy Facebook, since Apple could easily build a much better social networking program from scratch themselves.
post #22 of 193
The last time Apple made a big purchase like these investors are suggesting brought Steve Jobs back to Apple along with the brilliant crew of Next. Since then purchases have been a small chip maker here, a specialized software company there, the jukebox company which iTunes is based on (sorry the name escapes me) none of which are household names.
Apple doesn't seem to subscribe to the mentality of companies like, Microsoft-Yahoo, HP-Palm, Time Warner-AOL, etc... who's mergers or acquisitions have not proven to be great successes. Rumors and suggestions that Apple buy Adobe would benefit nobody but Adobe stock holders. Apple seems to look for technologies that have something new and exciting to offer allowing Apple to realize a product fully. Buying a large expensive company like Facebook (which may have peaked in popularity by now) is not how Apple does business. Why buy when you can license or make a deal to integrate a technology that seems timely giving you a way to drop it when the world has moved on.
post #23 of 193
Buy my debt!
post #24 of 193
Out side of the obvious suspects are there any companies out there with IPs and patents SJ would like to take over I wonder.
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
post #25 of 193
Quote:
Originally Posted by digitalclips View Post

Out side of the obvious suspects are there any companies out there with IPs and patents SJ would like to take over I wonder.

Maybe Steve's waiting for investors to wise up about MOT... with a pe of 48 I'm sure they are headed for a fall if they miss their numbers on the 28th.

When Motorola is worth around 10-11 billion I'm sure Steve's mouth will begin to water...
na na na na na...
Reply
na na na na na...
Reply
post #26 of 193
Quote:
Originally Posted by kerryb View Post

The last time Apple made a big purchase like these investors are suggesting brought Steve Jobs back to Apple along with the brilliant crew of Next. Since then purchases have been a small chip maker here, a specialized software company there, the jukebox company which iTunes is based on (sorry the name escapes me) none of which are household names.
Apple doesn't seem to subscribe to the mentality of companies like, Microsoft-Yahoo, HP-Palm, Time Warner-AOL, etc... who's mergers or acquisitions have not proven to be great successes. Rumors and suggestions that Apple buy Adobe would benefit nobody but Adobe stock holders. Apple seems to look for technologies that have something new and exciting to offer allowing Apple to realize a product fully. Buying a large expensive company like Facebook (which may have peaked in popularity by now) is not how Apple does business. Why buy when you can license or make a deal to integrate a technology that seems timely giving you a way to drop it when the world has moved on.

I totally agree but there would be some potential to Adobe though. I wonder what it would cost in the end assuming no one else bidding, about $15B?
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
post #27 of 193
Quote:
Originally Posted by hypoluxa View Post

I have a feeling that Jobs recent dinner with the FB CEO, there probably will be some sort of collaboration in the future. I don't think Apple will buy FB, don't see why. They should buy Adobe though. Either way tomorrow should be interesting!

Why would Apple want to spend the money to buy Adobe, then trash the crappy code, probably rebuild it from scratch and get stuck with the most expensive turd in the tech world, Flash? Let Adobe do all the heavy lifting with its apps. The day Adobe abandons its CS apps for Mac is the day they through away half of their income. Before that time comes watch for Apple to be out shopping for a little know company that has been working on the next great photo editing app.
post #28 of 193
Quote:
Originally Posted by Prof. Peabody View Post

He's probably still got a hard on for Sony and will buy them out when they start to seriously decline. Either that or he's saving up to buy a movie company like Paramount.

Sony is an idea if Apple are really intending to move into the living room. Then again what does Sony make Apple couldn't make themselves and better in that area? The movie division is an interesting thought. Steve must be sick of arguing the these content providers.
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
post #29 of 193
Quote:
Originally Posted by katastroff View Post

Indeed.
A. Kill Flash, and
B. terminate CS development for Windows.

And lose your investment in a second. Guess you have no clue how corporations work.
post #30 of 193
They could buy Adobe and clean it out, but I think that would be more trouble than it's worth.

Apart from the struggle over Flash I don't see why they would want to or need to get stuck in that tarbaby unless to make my life easier out of charity.

It would be easier to build their own stuff that covers a lot of the Adobe bases with it - like a more fully-feaured iWeb or something, or add stuff to Aperture that you can draw with - and give it to us cheap. That would help squeeze Adobe in the Flash wars but it's more direct to fight Flash by making deals and encouraging HTML5 adoption..

I'd like to see them buy Wacom and clean it out, or else find a nice way to add levels of drawing pressure for drawing on iOS devices.

I bet if Apple buy something big that non-techie people like me have actually heard of it will be to aid their push into the living room, like Sony or the rest of Disney, or a big store of musical rights. I bet Steve has Yoko Ono's number too...

Or else they will buy something like the Liquid Metal company or ARM or something to do with the internals. Or maybe buy what's left of the United States Rare Earth industry. China sells cheap now, when it runs out the US stuff left should be worth more -

http://www.nytimes.com/2010/10/20/bu...al/20rare.html

http://www.nytimes.com/2010/10/18/op...18krugman.html

Come to think of it, I'm big, bold and risky, they could give some of that cash to me... Steve?
post #31 of 193
Well said. Apple would have little benefit from buying Adobe, nor would Microsoft for that matter. About half of Adobe's revenue comes from Windows related products, the other Mac related products. If Microsoft were to buy Adobe presumably it would be to put a hurt on Apple. Microsoft would have to pay Adobe for the value of revenue earned on both Mac and Windows based products, only to kill half that value by stopping to make Apple's related products. Same situation would hold true for Apple. Apple wouldn't want to support Adobe's Windows products.


Apple buys small companies, usually at a bargain. Apple likes the cash because it can prepay for a years worth of supplies thereby significantly cutting the cost of those supplies at the expense of it's competitors.


Quote:
Originally Posted by kerryb View Post

The last time Apple made a big purchase like these investors are suggesting brought Steve Jobs back to Apple along with the brilliant crew of Next. Since then purchases have been a small chip maker here, a specialized software company there, the jukebox company which iTunes is based on (sorry the name escapes me) none of which are household names.
Apple doesn't seem to subscribe to the mentality of companies like, Microsoft-Yahoo, HP-Palm, Time Warner-AOL, etc... who's mergers or acquisitions have not proven to be great successes. Rumors and suggestions that Apple buy Adobe would benefit nobody but Adobe stock holders. Apple seems to look for technologies that have something new and exciting to offer allowing Apple to realize a product fully. Buying a large expensive company like Facebook (which may have peaked in popularity by now) is not how Apple does business. Why buy when you can license or make a deal to integrate a technology that seems timely giving you a way to drop it when the world has moved on.
post #32 of 193
Quote:
Originally Posted by kerryb View Post

Why would Apple want to spend the money to buy Adobe, then trash the crappy code, probably rebuild it from scratch and get stuck with the most expensive turd in the tech world, Flash? Let Adobe do all the heavy lifting with its apps. The day Adobe abandons its CS apps for Mac is the day they through away half of their income. Before that time comes watch for Apple to be out shopping for a little know company that has been working on the next great photo editing app.

Well if you put it like that ... But I wish Apple would hurry up and come out with more creative pro apps. Final Cut Stdio shows what they can do with an acquisition. Randy Ubillos was the real gem in that move.
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
post #33 of 193
After all the discussion months ago regarding Apple TV, maybe the eventual direction is to manufacture a TV with the new Apple TV built inside. Not saying tomorrow....down the road.
post #34 of 193
Quote:
Originally Posted by emulator View Post

And loose your investment in a second. Guess you have no clue how corporations work.

I think the post was meant to be humorous.
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
post #35 of 193
A company like Akami is a much more likely proposition
post #36 of 193
Quote:
Originally Posted by Cascadians View Post

No, Apple will not buy Facebook, since Apple could easily build a much better social networking program from scratch themselves.

Plus they're not really in the social networking business, and I bet Facebook in a few years could look a lot like AOL after Time Warner got stuck with it. Facebook will become old hat and less fashionable than it is now, and when it's not cool it's powers will fade.
post #37 of 193
Buy Adobe. Buy Microsoft. Buy Google.
post #38 of 193
Quote:
Originally Posted by kwoot27 View Post

After all the discussion months ago regarding Apple TV, maybe the eventual direction is to manufacture a TV with the new Apple TV built inside. Not saying tomorrow....down the road.

I wondered about this too. However, if Apple does TV then it will not be like any TV we have ever seen. That is for sure. Remember Steve's feelings when he closed the printer and camera divisions at Apple when he returned a iCEO. Why make something many others make and most better? Steve only does magic remember nothing mundane
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
post #39 of 193
Quote:
Originally Posted by Joe hs View Post

Buy Adobe. Buy Microsoft. Buy Google.

Buy off the Monopolies commisioner first though!
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
Google Motto "You're not the customer. You're the product."
Reply
post #40 of 193
I like the idea of buying Adobe, but I'm not sure that's what Apple needs. They have a number of competing products.

iPhoto/Aperture
vs.
Lightroom

Final Cut Pro
vs.
Adobe Premiere

After Effects
vs.
Motion

Etc. etc. etc. Considering Adobe is still ingesting Macromedia... I'm not sure if now is the time to strike.
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: AAPL Investors
AppleInsider › Forums › Investors › AAPL Investors › Steve Jobs: Apple will use $51B for big moves, not 'stupid' ones