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Deja vu: Apple buyout rumors resurface, juicing shares of luxury TV-maker Loewe by 40%

post #1 of 26
Thread Starter 
German television and electronics manufacturer Loewe saw its shares jump considerably on Wednesday when rumors that Apple was preparing to buy the firm ? originally reported by AppleInsider last summer ? resurfaced on European markets.

Loewe ID
Pictured: Loewe's Individual HDTV


Loewe's shares jumped more than 40 percent Wednesday morning according to Reuters. Market rumors claim Apple is planning to bid 4? ($5.40) per share, a 40 percent premium above the company's 2.85? closing price on Tuesday.

AppleInsider first broke word of Apple's presumed interest in Loewe in May of 2012, when a source leaked that Apple was considering acquiring the company. At the time, Loewe was said to have been advised by its financial advisor to accept the offer. Ironically, Loewe denied the rumor with prejudice.

Representatives from Loewe have again said they are unaware of any buyout bid from Apple. Apple, per usual, also declined comment.

iMacs


Loewe makes luxury television and sound equipment with a minimalist design aesthetic, as well as Blu-ray players, DVD recorders, and hard disk recorders. While the firm faces stiff competition from Samsung, LG, and Panasonic, Loewe said last year that it expected a future European fiscal recovery to boost sales through the end of 2013. Despite that optimism, Loewe's losses nearly tripled to 29? million in 2012, and the company is in the midst of cutting 1,000 personnel.

The firm's market cap hit 53? million on Wednesday's Apple rumor. Japanese manufacturer Sharp holds 28.8 percent of Loewe's shares, while Loewe's management holds another 14 percent. French digital storage device manufacturer LaCie holds another 11.2 percent.

The spike in Loewe's share price is the result of a near perfect storm of Apple rumors. The Loewe rumor reflects a coming together of two main concern investors have with Apple: a rumored move into televisions and what Apple will do with its $137 billion cash pile. Speaking on the topic of acquisitions on Tuesday, Apple CEO Tim Cook said the firm buys smaller companies every other month, but is very deliberate and thoughtful in doing so, purchasing only companies that will mesh well with Apple's culture and produce superior products.
post #2 of 26
Fat chance that Apple is going to buy a money-losing boutique consumer electronics outfit in Germany. Where's the value? Technology, market presence, design chops that Apple lacks? No, no and no, respectively.
post #3 of 26
Quote:
Originally Posted by NeilM View Post

Fat chance that Apple is going to buy a money-losing boutique consumer electronics outfit in Germany. Where's the value? Technology, market presence, design chops that Apple lacks? No, no and no, respectively.

Fully agree. Totally useless company for Apple. Not for the market; they make really nice TV's, but Apple is very good at designing (CE). They didn't buy a phone company in order to create the iPhone. Stupid rumor, though I love rumor sites. How's that for an oxymoron?
post #4 of 26
Wonder if you could iWatch a Loewe Apple TV?
post #5 of 26
Quote:
Originally Posted by AppleInsider View Post

AppleInsider first broke word of Apple's presumed interest in Loewe in May of 2012, when a source leaked that Apple was considering acquiring the company. At the time, Loewe was said to have been advised by its financial advisor to accept the offer. Ironically, Loewe denied the rumor with prejudice.

 

I am confused as to how Loewe denying the rumor is a case of irony. 

post #6 of 26
How appropriate, Loewe means lion in german!
post #7 of 26

Are there patents Lowes has that Apple would want?  Otherwise I don't get the point of it.  I'm sure Apple could design a TV as sleek and asthetically pleasing as what Lowes has.

post #8 of 26
Quote:
Originally Posted by indigo80 View Post

Wonder if you could iWatch a Loewe Apple TV?

No, we have B&O for that:


edit: why do the pictures change in this article?
post #9 of 26
What's the German equivalent of the SEC? Sounds like stock manipulation to me and I thought this only happened in the US. ;s
post #10 of 26
Quote:
Originally Posted by PhilBoogie View Post

No, we have B&O for that:
[images]

edit: why do the pictures change in this article?

And I thought Samsung's easel TV was bad.

That pic does look like this concept which I've lauded for years…
"This would allow the customer to choose from a variety of HDTVs in various sizes, shapes, type and features that have partnered with Apple. It would also resolve the issues between TV update cycles and computer update cycles, potentially allowing you to keep an HDTV for a decade whilst updating your Apple TV yearly."

Quote:
Originally Posted by Ken Burns Effect View Post

How appropriate, Loewe means lion in german!

So Mountain Lion is Loewe Berg?

edit: LOL Google Translate just changes mountain lion in English to Puma in German. Now I've learned two German words today.
Edited by SolipsismX - 2/13/13 at 8:57am

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post #11 of 26
Quote:
Originally Posted by rob53 View Post

What's the German equivalent of the SEC? Sounds like stock manipulation to me and I thought this only happened in the US. ;s

Only I'd have thought the stock would go down if the company were associated with the loser tech giant Apple /s
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post #12 of 26
Quote:
Originally Posted by NeilM View Post

Fat chance that Apple is going to buy a money-losing boutique consumer electronics outfit in Germany. Where's the value? Technology, market presence, design chops that Apple lacks? No, no and no, respectively.

Creating synergies -- when you know what you're doing, as an acquirer -- is all about buying companies with the kind of weaknesses that you point out, since it makes them cheaper than they otherwise would be.

 

This is especially true of brand-name, high-quality products that are underperforming; even more so if they have IP. You would expect Apple to bring its own technology, market presence, and design chops to build on what the target company has.

post #13 of 26
Quote:
Originally Posted by PhilBoogie View Post


Fully agree. Totally useless company for Apple. Not for the market; they make really nice TV's, but Apple is very good at designing (CE). They didn't buy a phone company in order to create the iPhone. Stupid rumor, though I love rumor sites. How's that for an oxymoron?

 

I agree also, with the exception that I disagree that Loewe makes "really nice" TV's.  They seem pretty ordinary to me and not that attractive. 

post #14 of 26
Quote:
Originally Posted by digitalclips View Post


Only I'd have thought the stock would go down if the company were associated with the loser tech giant Apple /s

Thats the fun of the game. Their stock goes up but Apples goes down.

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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post #15 of 26

I hope Apple puts out a TV soon.

 

I cut the cable and sold my TV about 5 years ago... and although I've saved ~$6K, I really miss watching Tiger Woods, F1 and tennis. Plus PBS.

 

I may have to buy a non-Apple TV with ATV set-top box, though. (Guarantee you, it won't be a Samsung!)

post #16 of 26
Quote:
Originally Posted by christopher126 View Post

I hope Apple puts out a TV soon.

I cut the cable and sold my TV about 5 years ago... and although I've saved ~$6K, I really miss watching Tiger Woods, F1 and tennis. Plus PBS.

I may have to buy a non-Apple TV with ATV set-top box, though. (Guarantee you, it won't be a Samsung!)

Panasonic makes some amazing looking award winning plasmas.
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post #17 of 26
Quote:
Originally Posted by dasanman69 View Post

Panasonic makes some amazing looking award winning plasmas.

Agreed. I have the Panasonic 65-inch VT plasma, and it's by far the best TV I have ever viewed. 

post #18 of 26
Quote:
Originally Posted by anantksundaram View Post

Creating synergies -- when you know what you're doing, as an acquirer -- is all about buying companies with the kind of weaknesses that you point out, since it makes them cheaper than they otherwise would be.

 

This is especially true of brand-name, high-quality products that are underperforming; even more so if they have IP. You would expect Apple to bring its own technology, market presence, and design chops to build on what the target company has.

Are you saying that this is the case with Apple and Loewe?

 

Personally making a TV seems infinitely easier than making a smart phone and Apple didn't have to partner with anyone to crack that market.  If Apple did acquire a company like this, it would just be about acquiring the personnel.  But again, I don't know what's so special about making a TV that would require this.

post #19 of 26
I am holding off buying one of those Panasonic 65 inch plasmas to see what Apple delivers. I currently have a beautiful Panasonic 50 inch plasma so the wait has been bearable. I will likely buy whatever Apple sells...
post #20 of 26
Quote:
Originally Posted by currentinterest View Post

I am holding off buying one of those Panasonic 65 inch plasmas to see what Apple delivers. I currently have a beautiful Panasonic 50 inch plasma so the wait has been bearable. I will likely buy whatever Apple sells...

You'll be holding off a while longer then. Apple holding a TV-centric event next month? Jim Dalrymple says "Nope".  

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post #21 of 26
Quote:
Originally Posted by dasanman69 View Post


Panasonic makes some amazing looking award winning plasmas.

Thanks, I'm leaning towards LED...LG, Sharp maybe even a Sony. :)

post #22 of 26
Quote:
Originally Posted by christopher126 View Post

Thanks, I'm leaning towards LED...LG, Sharp maybe even a Sony. 1smile.gif

I have both in my house, and I can't stand watching the LED for more than an hour. Everything looks fake, like Yo Gabba Gabba. Just do some research. Everything about plasmas has changed.

http://hdguru.com/hd-guru-top-picks-ces-2013-part-2/9833/#more-9833
Edited by dasanman69 - 2/13/13 at 1:10pm
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post #23 of 26
Loewe seems to make it all. TV, apps, speakers, etc.

I don't think Apple needs the designs, but perhaps there is some patents they would like to own. Perhaps manufacturing?
post #24 of 26
Quote:
Originally Posted by malax View Post

Are you saying that this is the case with Apple and Loewe?

I have absolutely no idea about Loewe's strengths and weaknesses -- do you?

 

I was making a general statement about what smart acquirers do. Apple is one of the smartest, most frugal companies around, and they are quite likely to know what the attractive characteristics of a target company are, what they're looking at to gain synergies, what they're paying.

post #25 of 26
Quote:
Originally Posted by PhilBoogie View Post


Stupid rumor, though I love rumor sites. How's that for an oxymoron?

 

Well, that isn't an oxymoron at all. So, in that sense, it's not so good.  :-)

post #26 of 26
Quote:
Originally Posted by anantksundaram View Post

Creating synergies -- when you know what you're doing, as an acquirer -- is all about buying companies with the kind of weaknesses that you point out, since it makes them cheaper than they otherwise would be.

 

This is especially true of brand-name, high-quality products that are underperforming; even more so if they have IP. You would expect Apple to bring its own technology, market presence, and design chops to build on what the target company has.

 

Look at it this way; Apple was re-inventing a smart phone -- there wasn't one out there like it (until of course Samsung saw it on their assembly line). But also consider that Apple spent a few years and billions to develop what they needed.
In the case of the TV -- they might not be re-inventing the display part. So what they need is someone who can create the aesthetics and has distribution and manufacturing channels already carved out. We're talking maybe $25 Million here. Apple is now a large company and it would probably cost them more than that to hire and develop any sort of TV in house.
The rumor might be unfounded -- but I don't think it's a dumb acquisition. It's not like they are spending Billions on an app that does color transformations of your photos.
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