“Apple is currently sitting on over $255 billion in cash, which is a record for non-financial companies. Apple’s cash has grown to such a large amount because 94% of it is being held overseas as the company awaits a tax holiday to bring it back to the US,” First Floor Finance writes for Seeking Alpha. “There is plenty of speculation about what Apple will do with the cash, but before we get to that, I want to put this number into perspective.”
What $255 Billion in Cash Means:
• Apple’s cash alone would be the 13th most valuable company in the S&P 500, trailing only Alphabe, Microsoft, Berkshire Hathaway, Amazon, Facebook, ExxonMobil, Johnson & Johnson, JP Morgan, Wells Fargo, General Electric, and AT&T.
• Apple could buy every single team in the four major professional sports leagues in the US, and would still have almost $100 billion left.
• Apple’s cash is greater than the GDPs of Chile, Finland, Portugal, and Venezuela.
• Apple could pay every single person in the world about $35.”
“There are a few different opinions of what Apple should do with their cash. The most likely use of this cash with be a combination of share buybacks, increasing its dividend, and paying off some of the $75 billion in long-term debt the company has on its books,” First Floor Finance writes. “Doing those three things would certainly return the most immediate value to shareholders, but there are two other options Apple should consider. The first is investing more in its Services businesses, which includes the App Store, Apple Music, and hopefully video content at some point. The second option is making a big acquisition, preferably one that helps to expand its current Services business.”
“The combination of Apple and Disney would create the world’s first $1 trillion company and would bring together one of the world’s best technology companies with one of the world’s best entertainment companies,” First Floor Finance writes. “This new super company would own some of the most successful and recognizable brands, including: Disneyland, ESPN, iPhone, iPad, Mac Computer, Marvel, and Pixar.”
Much more in the full article – recommended – here.
MacDailyNews Take: As we wrote back in April:
We can think of worse mega acquisitions Apple could make.
With Disney, Apple would gain not only content, but tremendous leverage in many areas, including “television.” With Disney, Apple would own ESPN, for example. Not to mention ABC, A+E, Marvel, Lucasfilm, The Muppets, Pixar (Steve Jobs’ babies unite!), 30% of Hulu, and much, much more.
Spin off the theme parks or deck them out with Apple technology and use them to showcase Apple products. The sky’s the limit!
As we wrote earlier [in April] in response to reports Apple was attempting to put together a plan to sell a premium skinny bundle consisting solely of HBO, Showtime and Starz:
Yawn.
You know what would really send a message?
Buying Disney.
All that said, we’ll believe it when we get the press release.
SEE ALSO:
Apple’s cash conundrum: Is buying Disney the answer? – April 13, 2017
Analyst offers six reasons why Apple may buy Disney – April 13, 2017
Apple’s premium TV plans – the hobby doomed to stay that way – April 10, 2017
A premium TV bundle could be Apple’s secret weapon – April 4, 2017
Apple wants to sell HBO, Showtime, and Starz in a single premium bundle – April 3, 2017
Google just succeeded where Apple failed – March 3, 2017
Senior Apple executives vying in confused effort for transformative Hollywood acquisition – March 3, 2017
YouTube to unveil virtual cable bundle for $30 to $40 a month – February 28, 2017
Stalled talks with Ron Howard highlight Apple’s content confusion – February 16, 2017
Apple vowed to revolutionize television; currently prepping an unremarkable 4K Apple TV instead – February 16, 2017
Apple TV: Still not ready for prime time – February 15, 2017
Apple hires Amazon’s Fire TV head to run Apple TV business – February 8, 2017
Laurene Powell Jobs cuts Disney stake in half – February 1, 2017
Why Apple should buy Disney – January 26, 2017
Apple’s new TV app shows just how painfully behind Apple is – December 14, 2016
Are you ready for 4K TV? Apple TV isn’t. – November 28, 2016
Apple has no idea what they’re doing in the TV space, and it’s embarrassing – November 3, 2016
Hulu inks deals with Fox and Disney, adding ESPN, Fox News and more to forthcoming live service – November 1, 2016
Apple’s Eddy Cue: Nope, we don’t want to be Netflix – October 20, 2016
Google signs up CBS for planned web TV service to debut in early 2017; close to deal with 21st Century Fox – October 20, 2016
Apple’s Eddy Cue: Nope, we don’t want to be Netflix – October 20, 2016
Apple’s Eddy Cue alienated cable providers and networks with an assertive negotiating style – report – July 28, 2016
Here comes á la carte programming – without Apple – July 13, 2016
Apple TV 4 is a beta product and, if you bought one, you’re an unpaid beta tester – November 5, 2015
Laurene Powell Jobs’ fortune jumps a cool $1 billion in a day as Disney soars – February 6, 2015
Disney completes Pixar acquisition; Steve Jobs now Disney’s single largest shareholder – May 5, 2006
