Carl Icahn says he'd 'never' push Apple to buy Nuance, only wants increased share buyback
Though billionaire Carl Icahn owns considerable stakes in both Apple and Nuance Communications, the investor revealed this week he has no plans to push for a marriage between the two companies, despite their existing partnerships.
Icahn spoke this week at the Reuters Global Investment Outlook Summit, where he was asked about the prospect of spurring a deal between the two parties. Such speculation has existed among investors for months, given Icahn's reputation as an activist investor and his 16.4 percent stake in Nuance --?a company whose technology is a key component behind Apple's voice-driven personal assistant, Siri.
"That is something I would never micromanage and never even think of telling (Apple Chief Executive) Tim Cook," Icahn said, according to Reuters. "It has zero to do with the fact that I'm involved in Apple."
He then went on to say that he feels he has neither "the expertise or the presumption to say I have the expertise to tell him to do that," giving a rather definitive stance on the issue.
The investor has a history of causing trouble with tech companies, most famously opposing Michael Dell's efforts to take PC maker Dell private. He also won three seats on the Yahoo Board of Directors, and is credited with helping to oust the CEO of Motorola, essentially forcing the company into the arms of Google.
But his interest in Apple has been in encouraging its executive team to spend $150 billion in share buybacks. Apple already has a buyback program in place, but Icahn believes the company's shares are extremely undervalued, and that an increased buyback would return more to investors such as himself.
Icahn revealed in October that he had at the time 4.7 million shares of AAPL stock, up from a previous total of 4 million. That would give him nearly $2.5 billion stake in the company at its current value.
The investor has gone as far as to suggest that he will consider pushing for a shareholder proxy vote, if Apple's executive team rejects his proposal and investors in the company show enough interest. He's said he believes Cook is doing a good job as CEO and shouldn't be replaced, but he wouldn't say the same for the rest of the company's board of directors.
Icahn spoke this week at the Reuters Global Investment Outlook Summit, where he was asked about the prospect of spurring a deal between the two parties. Such speculation has existed among investors for months, given Icahn's reputation as an activist investor and his 16.4 percent stake in Nuance --?a company whose technology is a key component behind Apple's voice-driven personal assistant, Siri.
"That is something I would never micromanage and never even think of telling (Apple Chief Executive) Tim Cook," Icahn said, according to Reuters. "It has zero to do with the fact that I'm involved in Apple."
He then went on to say that he feels he has neither "the expertise or the presumption to say I have the expertise to tell him to do that," giving a rather definitive stance on the issue.
The investor has a history of causing trouble with tech companies, most famously opposing Michael Dell's efforts to take PC maker Dell private. He also won three seats on the Yahoo Board of Directors, and is credited with helping to oust the CEO of Motorola, essentially forcing the company into the arms of Google.
But his interest in Apple has been in encouraging its executive team to spend $150 billion in share buybacks. Apple already has a buyback program in place, but Icahn believes the company's shares are extremely undervalued, and that an increased buyback would return more to investors such as himself.
Icahn revealed in October that he had at the time 4.7 million shares of AAPL stock, up from a previous total of 4 million. That would give him nearly $2.5 billion stake in the company at its current value.
The investor has gone as far as to suggest that he will consider pushing for a shareholder proxy vote, if Apple's executive team rejects his proposal and investors in the company show enough interest. He's said he believes Cook is doing a good job as CEO and shouldn't be replaced, but he wouldn't say the same for the rest of the company's board of directors.
Comments
Its time for him God. Call him. Cant tolerate his nonsense.
But then, there have been a number of companies Apple had a chance to buy but didn't. Google was for sale for $5 billion. Apple had a chance to buy them. Apple could have bought Navigon before Nokia did back in 2005. Apple knew they needed maps back then. Think of how things could have been different.
Is it possible to manipulate stocks by saying you won't do something?
I believe it is...
Um, actually I'm curious how that would work in this case. I just wanted to sound smart like everyone that posts on the inter web.
Everything a major investor says can have an effect on stocks. And that extends beyond the companies they're invested in. It's not possible that their statements won't have an effect.
With his worth being on the order of north of $22 billion, his words have meaning. We may not like what he says.
It definitely wasn't for financial reasons. Analyst got their feelings hurt. Wah.
Crazy Carl, buying Nuance would be better for Apple than your increased buy back scheme.
God bless Carl Ichan! AAPL has been trending upward since he first uttered the name. The fact that Apple makes great products doesn't give the company carte blanche to be a douche to Wall Street and investors. That's part of the reason Apple got so punished.
AAPL and Apple, Inc. are two different things. AAPL is simply part of the largest gambling organization in the world. Apple, Inc. produces great products for people. Apple has a lot of cash that doesn't have anything to do with the amount of money bouncing around the stock market. The value of AAPL only helps/hurts Apple when you discuss the shares they own. The value of AAPL stock can't be used by Apple for anything other than (maybe) getting good interest rates on loans. None of the AAPL money is used by Apple to purchase raw materials or pay salaries. This is the problem with the stock market because other than during an IPO, none of the trillions of dollars floating around the stock market can be used by the companies with their name attached to them, it's only there for the investors/gamblers (like Ichan).
The challenge and bragging rights.
When you make more money than you can spend, I really don't understand why you want more money. Can someone help me here? What's the end goal for extremely wealthy people?
Penis envy !
AAPL and Apple, Inc. are two different things. AAPL is simply part of the largest gambling organization in the world. Apple, Inc. produces great products for people. Apple has a lot of cash that doesn't have anything to do with the amount of money bouncing around the stock market. The value of AAPL only helps/hurts Apple when you discuss the shares they own. The value of AAPL stock can't be used by Apple for anything other than (maybe) getting good interest rates on loans. None of the AAPL money is used by Apple to purchase raw materials or pay salaries. This is the problem with the stock market because other than during an IPO, none of the trillions of dollars floating around the stock market can be used by the companies with their name attached to them, it's only there for the investors/gamblers (like Ichan).
Problem is that douche bags like him can convince other AAPL investors to make Apple Inc. take a direction it may not want to. That's the problem when companies are public. In the end their fate is really not in their hands, unless they buy back enough of their own shares.Stay greedy, my friends.
AAPL and Apple, Inc. are two different things. AAPL is simply part of the largest gambling organization in the world. Apple, Inc. produces great products for people. Apple has a lot of cash that doesn't have anything to do with the amount of money bouncing around the stock market. The value of AAPL only helps/hurts Apple when you discuss the shares they own. The value of AAPL stock can't be used by Apple for anything other than (maybe) getting good interest rates on loans. None of the AAPL money is used by Apple to purchase raw materials or pay salaries. This is the problem with the stock market because other than during an IPO, none of the trillions of dollars floating around the stock market can be used by the companies with their name attached to them, it's only there for the investors/gamblers (like Ichan).
All due respect that's a pathologically schizophrenic POV. Apple has been a public company since the 80s. A little late to put the toothpaste back in the tube, wouldn't you say?
All due respect that's a pathologically schizophrenic POV. Apple has been a public company since the 80s. A little late to put the toothpaste back in the tube, wouldn't you say?
I don't think so. People keep saying they're investing in a company by putting money into the stock market. This isn't true anymore. I talked to my father-in-law about this (he finally retired at age 82) and he told me none of the investor's money goes to the company. Just because they're public doesn't mean Apple has access to the investors money. As far as buying back shares (toothpaste), Apple is doing that anyway but I'm not sure why other than to hold more stock to keep crazy people like Ichan from taking over the company for his own gain.
When you make more money than you can spend, I really don't understand why you want more money. Can someone help me here? What's the end goal for extremely wealthy people?
The same as that for anyone, namely, 'more wealth from the portfolio I manage is better than less'?*
Why should this be surprising, since that is, after all, what makes the world go around?
*Note: That does not at all mean that they shouldn't give it away. The more their portfolio generates, the more they have to give away.
Since when is half a percent a "considerable stake"?
Ten or twenty percent is a considerable stake, just tell him to come back when he holds more than a pittance.
Since when is half a percent a "considerable stake"?
Ten or twenty percent is a considerable stake, just tell him to come back when he holds more than a pittance.
For values over 100 million dollars that's when.