Electronics giant Sony rumored for potential Apple acquisition
A new rumor has pegged Apple and its $51 billion in cash and investments as a potential buyer of Sony, prompting the largest trading volume of the Japanese electronics company in 3 months.
The rumors gained steam Tuesday, sending Sony stock up nearly 3 percent at one point, according to Reuters. Sony declined to comment on the rumors, and analysts polled were skeptical of a potential deal, suggesting that if Apple did try to buy Sony, it would be a hostile takeover that would not likely succeed in Japan.
Helping to fuel the rumors was a report issued on Saturday by Barron's that suggested Apple could buy Sony. It also speculated that Adobe and Disney could be potential targets for the Cupertino, Calif., company.
Another possible source for the rumors could be a recent interview former Apple CEO John Sculley did with Bloomberg. Sculley talked about how Apple co-founder Jobs was fascinated by Sony, its products and its manufacturing process. Sculley said that Jobs wanted Apple to be like Sony, not Microsoft.
"I remember (Sony co-founder) Akio Morita gave us one of the first Sony Walkmans," Sculley said. "None of us had ever seen anything like that before, because there had never been a product like that. This was 25 years ago and Steve was fascinated by it. The first thing he did was take it apart, and he looked at every single part. How the fit and finish was done, how it was built."
Apple has more than $51 billion in cash and reserves, and the company was pressed about that money during its quarterly earnings report last week. Jobs told analysts that his company will use that cash for big moves, suggesting that just "one or more" deals could be possible in the near future.
Jobs' comments have fueled speculation of potential major acquisitions, ranging from Sony to Adobe to Facebook. But until now, Apple has only used its cash for small, strategic purchases.
Recent acquisitions include 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.
The rumors gained steam Tuesday, sending Sony stock up nearly 3 percent at one point, according to Reuters. Sony declined to comment on the rumors, and analysts polled were skeptical of a potential deal, suggesting that if Apple did try to buy Sony, it would be a hostile takeover that would not likely succeed in Japan.
Helping to fuel the rumors was a report issued on Saturday by Barron's that suggested Apple could buy Sony. It also speculated that Adobe and Disney could be potential targets for the Cupertino, Calif., company.
Another possible source for the rumors could be a recent interview former Apple CEO John Sculley did with Bloomberg. Sculley talked about how Apple co-founder Jobs was fascinated by Sony, its products and its manufacturing process. Sculley said that Jobs wanted Apple to be like Sony, not Microsoft.
"I remember (Sony co-founder) Akio Morita gave us one of the first Sony Walkmans," Sculley said. "None of us had ever seen anything like that before, because there had never been a product like that. This was 25 years ago and Steve was fascinated by it. The first thing he did was take it apart, and he looked at every single part. How the fit and finish was done, how it was built."
Apple has more than $51 billion in cash and reserves, and the company was pressed about that money during its quarterly earnings report last week. Jobs told analysts that his company will use that cash for big moves, suggesting that just "one or more" deals could be possible in the near future.
Jobs' comments have fueled speculation of potential major acquisitions, ranging from Sony to Adobe to Facebook. But until now, Apple has only used its cash for small, strategic purchases.
Recent acquisitions include 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.
Comments
... ahhh that's why the Apple TV doesn't have BlueRay, you just buy the new iPlayStation and it comes rights with it!
It's true that the Japanese market wouldn't like this takeover but then again, Japan is only one market... and they do love iThings.
But imagine the broadening in Apple's manufaturing capacities... cameras, hdtvs, what about Sony-Ericson phones?
hum... I feel it's too big of a move but I'd be damned...
But just thinking about an Apple-Sony merger makes one drool over the A/V possibilities.
A new rumor has pegged Apple and its $51 billion in cash and investments as a potential buyer of Sony
Never.
Going.
To.
Happen.
C.
To consider that so many schmucks happily entered the bandwagon on the trade exchange is stunning. It's quite informative on the complete lack of rationality of the markets.
? with zero cultural fit.
You do not live in Europe certainly!
Sony is bigger that Microsoft and Apple together in Europe.
P.S. Still, SNE is a bit too much expensive right now. And no price growth is seen in the nearest future.
I think the odds of anything happening are really minuscule though. And if it does occur, it will be at Sony's initiative to stave off bankruptcy.
Come to think of it, Apple and Disney might just parcel out Sony between them with the media assets going to Disney.
This would NEVER HAPPEN IN A MILLION YEARS.
Any investor that believes this rumor deserves to lose money in the stock market, because they have no idea what they are investing in.
Apple is no longer fascinated by Sony, because Apple has crushed Sony on every single level.
There would be NOTHING AT ALL to be gained by a Sony takeover. Nothing. Sony offers absolutely nOTHING that Apple would want or need.
I'd rather that Apple just kept its cash, than buy a has-been electronics manufacturer from Japan with zero cultural fit.
I avoid Sony products as of now. I wonder what it would be like if they were all branded with the Apple logo?
You do not live in Europe certainly!
Sony is bigger that Microsoft and Apple together in Europe.
Um, no they are not. Do you even know what you're talking about?
Sony, as a company, is worth $33.6 billion.
Microsoft is worth $217.98 billion.
Apple is worth $282.14 billion.
Just because you may personally have some friends with a Sony Vaio doesn't mean that Sony is bigger than Apple in Europe.
stupid article. Sony is WAY to big for little ol' Apple to buy them.
I'm hoping this is sarcasm.
There would be NOTHING AT ALL to be gained by a Sony takeover. Nothing. Sony offers absolutely nOTHING that Apple would want or need.
They have extensive IP. They also have lots of proprietary stuff, like Memory Sticks and Mini Disks. And they make zillions of TV sets, each of which cold have Apple TV built in, to compete against Google TV which is going to come built-in.
Here's what the Financial Times speculates:
It is surmised that Apple is primarily targeting Sony's gaming segment which includes its PlayStation line of products. Apple lacks a significant presence in the gaming industry where Microsoft, with its Xbox line of products, and Nintendo are major players. ...
Another area which could be appealing to Apple is Sony's semiconductor business as Apple attempts to closely integrate its hardware with the software. Sony has developed a new CELL processor with Toshiba and IBM which enhances multi-media performance and vector calculation devices. ...
However, Sony is a diversified company with interests in electronics, gaming, media and financial services. Thus an overall Sony portfolio would not fit into Apple's strategy. Also Sony is a key Google partner; it recently released Google-TV powered HDTV models.
Think about it. Two giants one being acquired by the other? May be great for Apple but not so much for Sony. What would they be called in the end Snapple is already taken.
The answer to that is easy (assuming it happened) ... "Apple"