Jobs won't sell Apple to IBM

sebseb
Posted:
in General Discussion edited January 2014
Rumor has it IBM is offering a $45/share bid for Apple.



<a href="http://library.northernlight.com/FC20020215980000087.html?cb=0&dx=2006&sc=0#doc"; target="_blank">http://library.northernlight.com/FC20020215980000087.html?cb=0&dx=2006&sc=0#doc</a>;



Like the topic title states. Jobs won't sell Apple to IBM. I just don't see it happening.



What was it he said, "My priorities are my family, Apple, and Pixar. In that order."



Won't happen. Whattayou think?
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Comments

  • Reply 1 of 88
    timotimo Posts: 353member
    I'm inclined to agree with you, but I have one nagging doubt.



    In order for Jobs' options to be worth anything, the stock price has to be above a certain level. Can't remember what the magic number is, but it's nowhere near the current 25 dollar range. What if the IBM offer is a "bribe" to get him out of the business? Afterall, he's then free to start another company...
  • Reply 2 of 88
    groveratgroverat Posts: 10,872member
    Very interesting proposition.



    I guess that might just put an end to the x86 rumors
  • Reply 3 of 88
    Can anyone think of an example of a Fortune 500 company paying nearly 2x present market value to purchase another Fortune 500 company?
  • Reply 4 of 88
    timotimo Posts: 353member
    [quote]Originally posted by sizzle chest:

    Can anyone think of an example of a Fortune 500 company paying nearly 2x present market value to purchase another Fortune 500 company?<hr></blockquote>



    Remember, you got to factor in Apple's cash on hand (wasn't it 4 billion or something?) into the price.



    $4B / 352M shares outstanding = $11.35. Now AAPL's trading at 24. Either it's worth 24 because of its earnings or potential earnings (who knows) or it's really worth 24-11 = $13 / share. Or somewhere between these two poles.



    It all depends on how you value it. If IBM thought that Apple was currently worth 24 based on where it thinks Apple's earnings are going, then the 45 bid might make sense when you factor in the cash reserves (24+11 = 35) and making all those execs happy that their options are thereafter worth more than zero.



    But that's a big if. Who knows if AAPL is even worth 24...



    Somebody check my math.



    [ 02-15-2002: Message edited by: Timo ]</p>
  • Reply 5 of 88
    marcukmarcuk Posts: 4,442member
    I 75% think that a sell to IBM might be a good idea.



    IBM could invest an order of magnitude higher in the platform than Apple can. Of course IBM can put its own PPC/Power chips in the Macs, at any speed that see fit, IBM is starting to push Linux on its desktops/workstations, so why not OSX, which is far more complete/standard than Linux. IBM can develop OSX much quicker than Apple. Macintosh gets the benefit of IBM's no.1 status, making them a far less risky platform to invest in than a company thinking of switching to Apple. Imagine OSX from a humble iMac to IBM's mid/top of range machines, and you could see BillGates really starting to excrement his pants.



    Although. We know how things stand with Apple at the moment. We know they are continuing to thrive(slowly) and will be around for us. Id not like IBM to ditch the mac, although IBM payingg $45 a share might make them think twice about an instant ditch. I can imagine that Steve-O might not like to sell, but in all reality, as BG put it, "he must know he can't win". Well maybe this way he can.

    -"Hey, I saved the most innovative company in the world at its final coffin nail, sold it to the worlds biggest computer company, and now every computer in the world runs my OS. And we killed M$ to boot."



    he'll have to update his homepage!
  • Reply 6 of 88
    leonisleonis Posts: 3,427member
    I too was thinking IBM buying Apple may help the future of Apple due to IBM's much bigger cash in the bank and the PPC asset.



    But there's one thing that maybe a trouble - AltiVec.....IBM isn't interested on this
  • Reply 7 of 88
    [quote]Originally posted by Leonis:

    <strong>

    But there's one thing that maybe a trouble - AltiVec.....IBM isn't interested on this</strong><hr></blockquote>



    Sahara II with altivec compatible vector processor may suggest otherwise...
  • Reply 8 of 88
    [quote] But there's one thing that maybe a trouble - AltiVec.....IBM isn't interested on this <hr></blockquote>



    mot is in financial trouble and is cutting staff and closing down plants...ibm can buy apple and mot's chip (altivec) technology...



    not sure i would like this to happen...but i can see an upside....just pretty sure there is a big downside that i am not seeing...get a werid feeling... apple has been around for 20 plus years making computers and their os, but, even with the upside of ibm (cash, technology, name, etc) that 3 years after ibm buys apple, apple goes down and out....g
  • Reply 9 of 88
    this is probably stupid, but i seriously think that IBM is out to do anything to F*** over MS. i still think IBM is pissed off that they were taken to the cleaners by some little pissant who never graduated college.



    personally, i think IBM is throwing thier weight behind Apple and Linux in any way possible to screw over MS while making a profit themselves. Big Blue has a loooong memory, and i don't think they're pleased with how the PC market ended up.
  • Reply 10 of 88
    marcukmarcuk Posts: 4,442member
    suure would be a good way to screw M$. A brilliant masterplan for sure. And they could/are develop Altivec equivalent easily. I secretly hope they do buy Apple, but of course I have a few reservations, and no Im not a stockholder.
  • Reply 11 of 88
    eugeneeugene Posts: 8,254member
    IBM isn't very good at making PCs. I would hate to see such a rumor become reality.
  • Reply 12 of 88
    [quote]Originally posted by Timo:

    <strong>



    Remember, you got to factor in Apple's cash on hand (wasn't it 4 billion or something?) into the price.



    $4B / 352M shares outstanding = $11.35. Now AAPL's trading at 24. Either it's worth 24 because of its earnings or potential earnings (who knows) or it's really worth 24-11 = $13 / share. Or somewhere between these two poles.



    It all depends on how you value it. If IBM thought that Apple was currently worth 24 based on where it thinks Apple's earnings are going, then the 45 bid might make sense when you factor in the cash reserves (24+11 = 35) and making all those execs happy that their options are thereafter worth more than zero.



    But that's a big if. Who knows if AAPL is even worth 24...



    Somebody check my math.

    </strong><hr></blockquote>



    The math is about right -- Apple's market cap is roughly double its cash reserve, which means the market believes half of Apple's value as a company is the cash it has on hand. Another way of stating that is to say that Apple's value isn't its market cap PLUS its cash reserve -- the cash reserve is calculated into the company's valuation by investors and thus is included in the market cap.



    It wasn't too long ago that Apple's market cap was approx $5B, which really was a joke. In other words, investors believed Apple was really worth NOTHING aside from the actual cash they held.
  • Reply 13 of 88
    [quote]Originally posted by MarcUK:

    <strong>sure would be a good way to screw M$. A brilliant masterplan for sure. And they could/are develop Altivec equivalent easily. I secretly hope they do buy Apple, but of course I have a few reservations, and no Im not a stockholder.</strong><hr></blockquote>



    I'm all for screwing M$ too, they've screwed us and the Industry for long enough. And as far as a masterplan, OSX on Power4 servers would be more than a slight boost (!) to enterprise computing as well as high end rendering (Nothing Real here). Think about Maya under OSX on Power4 Apples!



    As far as the desktop systems, under IBM control we would see far more rapid development and product release cycles. Apple would finally have a marketing budget and we would see Apple ads as often as we see the Dell dude.



    IBM wouldn't do this unless they have already worked out a plan with Motorola to take over the G4 & G5 processors with a buy out of the Motorola PPC chip interests. IBM has the Fabs to start cranking out both Apollos and G5's. They have got to know more about the specs and performance of the G5 than any of the rumor sites and posters on this board. This could be a key to their plans (if any, this is still just a rumor).



    I am an APPL stock holder, and if this rumor gets legs it will be great for my investment. Just a statement by either IBM or Apple concerning this will send APPL soaring. Even if a $45 per share offer is rejected, just the offer itself will rock the stock.



    I never thought I'd say this but - GO BIG BLUE GO!
  • Reply 14 of 88
    rickagrickag Posts: 1,626member
    If IBM tender an offer @ $45/share I'd have to think long and hard about selling. I just can't imagine what IBM's interest in buying Apple is, other than the $4 billion reserves.



    This rumor is very disconcerting.



    The upside would be an extremely good opportunity(re: IBM's size and marketing) to gain business sales, but very risky for both IBM and Apple(mostly Apple).
  • Reply 15 of 88
    amorphamorph Posts: 7,112member
    I doubt Steve Jobs would be interested in answering to one of the most famously inertial bureaucracies on Earth. It would seriously cramp his style.



    That said, I've noticed that close collaboration tends to spark buyout rumors. I wouldn't be surprised if there's some licensing or mutual investment and/or employees sent to the other's sites, that sort of thing.



    All of the bennies listed in this thread would be possible via licensing, if Apple and IBM were serious about doing it. Personally, I think it's the best way. IBM can get PCs built on its platform without going into the PC business, and Apple can get enterprise hardware and support without going into the enterprise business. Both companies are chock full of engineers talented enough to make it happen.



    Then Steve gets to do exactly what Bill did nearly twenty years ago: Piggyback on IBM.
  • Reply 16 of 88
    Altivec doesn't mean much - there aren't many programs that take advantage of it. And without Altivec, G4s are about the same speed as G3s.
  • Reply 17 of 88
    I think this rumor is bogus - why hasn't the stock gone up today like crazy - $45 a stock is a lot? <a href="http://quote.yahoo.com/q?s=aapl+ibm&d=v2"; target="_blank">click me for stock quotes!</a>



    But off course, I could be wrong.
  • Reply 18 of 88
    amorphamorph Posts: 7,112member
    [quote]Originally posted by kHack:

    <strong>Altivec doesn't mean much - there aren't many programs that take advantage of it.</strong><hr></blockquote>



    Uhhh...



    No.



    Or perhaps it would be more accurate to say that those apps that do take advantage of it are absolutely crucial for Apple, and AltiVec is what makes them worthwhile.



    The Velocity Engine isn't going anywhere.
  • Reply 19 of 88
    rickagrickag Posts: 1,626member
    Would the stock have already begun to increase this quickly? I would guess that any real players in the market would be waiting for some kind of verification. Not that any insider trading would be going on.
  • Reply 20 of 88
    amorphamorph Posts: 7,112member
    There's an old Wall Street adage: Buy on rumor, sell on news.
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