Apple, despite having a “rough” year last year, still has a lot of money to do what it wants with. And people keep pointing to a potential acquisition as the next step.
Apple is certainly no stranger to buying companies, but usually it leans towards smaller companies, which it can absorb and then use the features they were originally working on. The main exception, of course (despite it still getting absorbed) is the Beats brand, which it acquired for $3 billion years ago.
But talk that Apple might acquire another huge company refuses to go away. Just this year it was reported that Apple had been going through the talks of acquiring Ron Howard’s and Brian Grazer’s Imagine Entertainment. In the past, we’ve heard that Apple may acquire Netflix, and it’s even been suggested that the company that built the iPhone could buy up Disney.
Here we are again, with a report from Reuters outlining that analyst Jim Suva of Citigroup has name dropped a variety of different companies, namely Netflix and Tesla, as potential acquisitions. The report says that Apple is more likely to use that big cash pile with a potential tax holiday on the brink of becoming a reality.
As for the other companies that are potential acquisitions, they include Hulu, Activision Blizzard, Take Two Interactive, and Electronic Arts.
“The other potential acquisition targets include video game developers Activision Blizzard (ATVI.O), Electronic Arts (EA.O) and Take Two Interactive Software (TTWO.O) as well as video streaming service Hulu.
The analyst said the targets were screened considering five criteria – strategic fit, global scale, transaction size, few non-strategic assets and likely impact on Apple’s share price.”
It would be interesting to see what Apple would do with any one of these companies, if it acquired them. If you had to pick, which one do you think Apple should pick up?