Originally Posted by AppleSauce007
I don't think Apple will buy Nuance at 5 to $7 Billion for many reasons in addition to the price.
Nuance has excellent voice recognition but their other products can be undermined. I think Carl Icahn realizes this.
When Visioneer + ScanSoft bought Dragon Systems/Nuance, they got excellent voice recognition that gives them an advantage and pushed their original ScanSoft imaging scanning product to the background. Nuance has since licensed the voice recognition to many other companies including Apple. They have also purchased other companies such as Dictaphone and BeVocal to build up their products arsenal.
The companies licensing the voice recognition from Nuance can undermine Nuance's other products. Apple will soon undermine their car voice recognition products products to some extent with iOS in the car. Apple's SIRI speech/voice system in iOS 7 demonstrated at WWDC will beat Nuance and the other licenses. Note that speech and voice recognition go together and Apple certainly wants to differentiate itself from the other Nuance licenses.
If Apple can enhance the Nuance voice recognition technology or better yet come up with it's own voice recognition to match or beat Nuance, Nuance would quickly be in big trouble.
Considering the market cap of Nuance and licensees that it has, and Apple's goal to differentiates itself, it makes more sense for Apple to keep licensing from Nuance until Apple can come up with it's own voice recognition system that is at least as good as Nuance's system.
I'd like to add to the conversation......
Why pay so much for Nuance. Some of their earlier speech patents that are the building blocks of speach recognition technology, but will expire in the next five years?
You can see that Nuance knows this, look at their number of acquisitions from 2006 to 2013. It looks like they bought every patent troll that might have tried to sue them.
This may be the future of the mobile patent wars?