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As Apple preps bid on Nortel patents, are they considering buying RIM or AMD or both?

Monday, June 20, 2011 · 4:44 pm · 34 Comments

“Friday, The Wall Street Journal reported that Apple joined the bidding war for the telephony patents put up for sale when the Canadian telecommunication equipment maker Nortel went bankrupt two years ago,” Marc Courtenay writes for Seeking Alpha. “The story claims that more than 6,000 patents are at stake, covering some of the key underlying technologies of mobile communications, including Wi-Fi, social networking and LTE, the fourth-generation wireless technology now being deployed.”

Courtenay writes, “Maybe Apple’s appetite to buy and acquire is part of the reason the stock again took a hit on Friday. It spent most of the day struggling to maintain that all-important $320 per share support level. This, while things are looking grim for one of its competitors.”

“Could it be feasible that Apple might be considering a way to ‘finish RIMM off’ through an investment or an acquisition? It’s an interesting possibility. If that were to happen it would open a door for Apple to acquire what’s left of Research In Motion’s business formula,” Courtenay writes. “A joint venture or an acquisition of Research In Motion by Apple would open the way for Apple to reach and win over a customer base that otherwise might not be interested.”

Courtenay writes, “Another company Apple might want to pursue is Advanced Micro Devices (AMD)… It would be a financially possible feat for Apple to use some of its $66 billion in cash and cash equivalents to swallow AMD with its $5 billion market cap company. Apple’s market cap is still north of $296 billion.”

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Comment Feed

34 Comments

1 2 Next »

auramac

Monday, June 20, 2011 - 4:47 pm · Reply

I wish they’d buy Adobe.
- beetlecardriver
  
  Monday, June 20, 2011 - 5:34 pm · Reply
  
  If only to drop PC versions of the software!
  - crisrod63
    
    Monday, June 20, 2011 - 8:26 pm · Reply
    
    Excellent proposition there. Buy a company and kill 50% of there revenue out of spite.
    
    I am so glad you guys are not in charge of Apple.
    - thumbmaster
      
      Monday, June 20, 2011 - 8:38 pm · Reply
      
      They did just that when they bought Emagic, maker of Logic, back in 2002. Having said that, there’s currently very little financial incentive for Apple to acquire Adobe.
    - beetlecardriver
      
      Tuesday, June 21, 2011 - 4:19 am · Reply
      
      It was sarcasm.
      
      It was supposed to be a stupid statement just like “buy Adobe.” I’m quite sure Adobe doesn’t have anything Apple wants. Dated bloatware would just be a weight around Apple’s neck.
- macromancer
  
  Monday, June 20, 2011 - 10:56 pm · Reply
  
  Not going to happen. Apple would rather (and has) build their own software from the ground up.
Clarence Bodicker

Monday, June 20, 2011 - 4:49 pm · Reply

I love this idea. Apple could end up with plenty of patents if they were to buy them.
Brian

Monday, June 20, 2011 - 5:03 pm · Reply

They would’nt buy RIM except for the patents and they don’t need another chip company they have one already.
Dude McFarland

Monday, June 20, 2011 - 5:03 pm · Reply

Buy RIM?

Why buy the Titanic after its already struck the iceberg?

Just wait em’ out, they are taking on water and I’m pretty sure the co-CEOs are up on deck listening to the orchestra totally clueless that the ship is sinking.
RDF

Monday, June 20, 2011 - 5:05 pm · Reply

Apple could buy RIM’s patents and include a license back to RIM as part of the deal. RIM could use the cash, Apple the patents and should not require regulatory approval. Good all around.
Apple should lay a pre-emotive bid on the table for the Nortel patents. It’s insurance against future lawsuits and ammo for future lawsuits against competitors & trolls.
- Bizlaw
  
  Monday, June 20, 2011 - 6:31 pm · Reply
  
  RIM isn’t going to just sell it’s patents off. Get real. And RIM has nothing else Apple wants.
  
  “Loyal customer base”? Try “Shrinking customer base.” And those current Blackberry users will jump ship faster than Ballmer can throw a chair if RIM files for Ch. 7 bankruptcy (liquidation).
- MrEdofCourse
  
  Tuesday, June 21, 2011 - 2:45 pm · Reply
  
  RIM has 2.12B in cash and no debt. It’s earning a profit. While they’re in trouble in terms of market share and getting traction with new products, cash itself isn’t needed. Acquiring cash from a sell of patents wouldn’t help the stock price because it’s not a profit from their business.
  
  If they had patents that Apple was interested in, they’d be better off suing Apple (if Apple was already using them) or licensing (if Apple wanted to use them).
BlueMeanie71

Monday, June 20, 2011 - 5:07 pm · Reply

Apple doesn’t really need to buy these companies. This is not a game which aims on just getting rid of competitors. It’s about business, making money. So why spent it on a DCW such as RIM. This news item is pure speculation, and that’s all it is.
- Gregg Thurman
  
  Monday, June 20, 2011 - 8:03 pm · Reply
  
  Excellent. Glad to see someone thinking logically.
Cubert

Monday, June 20, 2011 - 5:09 pm · Reply

Doesn’t make sense to buy RIM. Just leave ‘em withering on the vine blowing in the wind.
KenC

Monday, June 20, 2011 - 5:10 pm · Reply

No and no. Apple is not even thinking of buying RIM or AMD. Why buy a dying business, when you can grow organically for less? Why buy a chipmaker, when you can cherrypick the chips you want? Why compete with your suppliers?

It’s a nice little thought experiment, but buying entails the usual people who will say this is anticompetitive, etc. Growing organically, will allow Apple to upset the cart, without complaints.
KenC

Monday, June 20, 2011 - 5:12 pm · Reply

As for the Nortel patents, I doubt Apple would use them offensively. Their bid would be a defensive play. In fact, the most sense would be a consortium of tech companies buying them to take them out of play from some other company using them offensively. Buy them for the good of all.
rp2011

Monday, June 20, 2011 - 5:13 pm · Reply

The AMD patents may come in handy IF Apple is going to further pursue it’s own silicon. Maybe just handing the designs to Intel or Samsung to build is getting a little to incestuous and litigious.
RIM? I would have thought it a good idea a few years ago, I’m not so sure now. I would like Apple to make a physical keyboard phone at some point though.
theLedger

Monday, June 20, 2011 - 5:17 pm · Reply

Apple only acquires companies that offers technologies that are strategic to upcoming products. They don’t buy companies to eliminate competition or buy customers.
AdmiralX

Monday, June 20, 2011 - 5:22 pm · Reply

This is ludicrous.

“Maybe Apple’s appetite to buy and acquire is part of the reason the stock again took a hit on Friday.”

Appetite to buy an acquire what and by whose reckoning? If anything “investors” (read: the analists) are the ones with a bee up their tails trying to get unconventional Apple to behave conventionally.

“It spent most of the day struggling to maintain that all-important $320 per share support level.”

What? What’s so “all-important” about $320 per share? Now $420 I could understand …

“Could it be feasible that Apple might be considering a way to ‘finish RIMM off’ through an investment or an acquisition? It’s an interesting possibility. If that were to happen it would open a door for Apple to acquire what’s left of Research In Motion’s business formula”

Why would Apple do this when RIMM is doing a pretty decent job of finishing itself off what with the failed PlayBook and hemorrhaging market share?

“A joint venture or an acquisition of Research In Motion by Apple would open the way for Apple to reach and win over a customer base that otherwise might not be interested.”

OR Apple could just do what it’s done to everyone else in every other market it’s entered. Make the best kit, place the two side by side and let the buyer decide. There’s a reason why Apple’s “struggling” to keep its stock price in the 300s and it has nothing to do with predatory acquisitions.

“Another company Apple might want to pursue is Advanced Micro Devices (AMD)”

Because Intel would just W.U.V. that.

MDN, please link people with sense in the future.
Michael A. Robson

Monday, June 20, 2011 - 5:40 pm · Reply

Remember they actually tried to buy Palm, but HP was just a better bid… They’ll give it a shot… at least to not get sued by RIM for iMessage
- smacsteve
  
  Monday, June 20, 2011 - 6:44 pm · Reply
  
  They did? I don’t recall that.
  - luneunion
    
    Tuesday, June 21, 2011 - 1:11 am · Reply
    
    Jobs tried to buy Palm in the 90s and at least according this article was one of the bidders for Palm
    
    http://www.businessinsider.com/apple-rim-google-hp-palm-2010-7
Spade

Monday, June 20, 2011 - 5:44 pm · Reply

This obsession people have, trying to spend Apple’s cash reserves for them, is reflective of the financial problems people have in this country. “Save money for strategic needs in future? Pshaw! I’d rather blow it all right now, on stuff I either don’t really need or wouldn’t be able to use properly anyway!”

If Apple were instead promoted as a responsible example of saving that we should all be following, the country as a whole would be much better off.

“A joint venture or an acquisition of Research In Motion by Apple would open the way for Apple to reach and win over a customer base that otherwise might not be interested.”

Right, because the iPhone and iPad aren’t catching on at all in the enterprise market. Seriously, are you even paying attention to what’s going on?
- gotwake
  
  Monday, June 20, 2011 - 10:12 pm · Reply
  
  +1
  Reminds me of the article about how Apple should actually take on some debt. Unbelievable! I think Apple has done a fine job using their cash for strategic acquisitions.
Jon1234

Monday, June 20, 2011 - 5:46 pm · Reply

Seeking Alpha has lost it. THis is all completely dumb and not worth the read.
His Shadow

Monday, June 20, 2011 - 6:04 pm · Reply

Apple will never make any of these acquisitions. They simply don’t lack anything that these companies have, except a patent hoard. Look at Apple’s modest purchases to date. There is simply no history of outlandish purchases either to kill a competitor or grab a market or a technology.
thethirdshoe

Monday, June 20, 2011 - 6:15 pm · Reply

No.

Just No the the whole pile of B S.
Bizlaw

Monday, June 20, 2011 - 6:36 pm · Reply

I don’t get why analysts keep insisting Apple has to spend its cash acquiring troubled companies. Buying RIM and shutting it down (which is the only thing that would make sense) would raise anti-trust issues, even though Apple’s not close to those type of problems yet. But why invite the justice department’s scrutiny? I don’t think Apple could shutter RIM faster than RIM is shuttering itself anyway.

Apple is in the Nortel bidding because, in this mobile electronics age, He Who Has The Most Patents (Which He Can Then Force All Competitors to License) Wins. Basically it’s a steady stream of income Apple could receive from licensing those patents, and Apple could theoretically choose not to license them (although that has another set of problems – better to license and let competitors continue to put out incompetent products and beat them at sales anyway, while they pay you for the privilege).
KingMel

Monday, June 20, 2011 - 7:12 pm · Reply

“Maybe Apple’s appetite to buy and acquire is part of the reason the stock again took a hit on Friday.”

First, Apple gets bashed for “hoarding” the cash. Now they are getting bashed for spending a relatively small amount. Dividends…yeah, that must be the answer. Nope. The real answer is that Wall Street analysts and reporters don’t have a clue about why the market does what it does. If they did, then they would be independently wealthy and you would not be hearing from them because they would be kicked back on a yacht or tropical island with a personal jet and submarine.
Sing

Monday, June 20, 2011 - 7:30 pm · Reply

Apple is launching iMessage, doesn’t it? Why does it RIM?