AMD's Market Cap. is 8.365 Billion. Is that the numer that is used to determine the total worth of a company. Could Apple (AAPL) take 8.3 Billion in cash and take over AMD? (if the board would allow) ???
It's more complicated than this. When you want to buy a company you have to buy a majority of shares. You must make a public proposition, and the deal must be approved by the administration.
Then you can try to do your bargain, but if not enough people sell their shares you can't take control of the company and you stop the process.
In general when you try to do this type of transaction it cost you way more than the sum of the shares.
BTW I doubt that Apple is interested by buying a chip company.
AMD's Market Cap. is 8.365 Billion. Is that the numer that is used to determine the total worth of a company. Could Apple (AAPL) take 8.3 Billion in cash and take over AMD? (if the board would allow) ???
Apple was once involved with CPU design long ago, they sold that piece of the pie off to IBM - it make very little sense, just like the idea of Apple owning an ISP made very little sense.
As for money, Apple could easily borrow against their market capitalisation if they wished to make a large take over bid for a company; it isn't just a straight out matter of 'how much cash do I have' - there is more in the equation than just that.
Comments
Then you can try to do your bargain, but if not enough people sell their shares you can't take control of the company and you stop the process.
In general when you try to do this type of transaction it cost you way more than the sum of the shares.
BTW I doubt that Apple is interested by buying a chip company.
Originally posted by M.O.S.T
Advanced Micro Devices, Inc. (AMD)
Question
AMD's Market Cap. is 8.365 Billion. Is that the numer that is used to determine the total worth of a company. Could Apple (AAPL) take 8.3 Billion in cash and take over AMD? (if the board would allow) ???
Apple was once involved with CPU design long ago, they sold that piece of the pie off to IBM - it make very little sense, just like the idea of Apple owning an ISP made very little sense.
As for money, Apple could easily borrow against their market capitalisation if they wished to make a large take over bid for a company; it isn't just a straight out matter of 'how much cash do I have' - there is more in the equation than just that.