RUMOR: Apple to buy Sony

Apple Online Store“Sony shares rose 3 percent on Tuesday on speculation that Apple, in its bid to join the gaming bandwagon, was vying to acquire the company,” Carl Bagh reports for International Business Times.

“Reuters reported that the speculation was fueled by a report from Barron’s that stated that cash-rich Apple could be aiming for acquisition and named Adobe, Sony and Disney as potential targets,” Bagh reports. “Apple currently has $50 billion in cash reserves and has a market capitalization of $282 billion while Sony has a market cap of $34 billion. Financially Sony is within Apple’s reach.”

MacDailyNews Take: Pretty much anything is within Apple reach if they want it badly enough. And these sort of rumors are to be expected after Jobs’ comments regarding Apple’s $51 billion cash pile during last Monday’s conference call.

Bagh reports, “It is surmised that Apple is primarily targeting Sony’s gaming segment which includes its PlayStation line of products. Apple lacks a significant presence in the gaming industry where Microsoft, with its Xbox line of products, and Nintendo are major players. Sony’s PlayStation console has been used by it to piggy-back its other products like Blu-Ray player as it has adopted HD technology on its gaming console. The gaming platform can fit into Apple’s model as it can leverage the product to augment game offerings on its iPhone and iPad devices. Also Sony’s TV line of products can be used by Apple to complement its Apple TV.”

MacDailyNews Take: Apple lacks a significant presence in the console gaming industry. The handheld gaming industry is another story entirely: Apple’s iOS devices surpass Sony PSP, close in on Nintendo DS, in U.S. gaming – September 15, 2010

Bagh reports, “Another area which could be appealing to Apple is Sony’s semiconductor business as Apple attempts to closely integrate its hardware with the software. Sony has developed a new CELL processor with Toshiba and IBM which enhances multi-media performance and vector calculation devices… However, Sony is a diversified company with interests in electronics, gaming, media and financial services. Thus an overall Sony portfolio would not fit into Apple’s strategy. Also Sony is a key Google partner; it recently released Google-TV powered HDTV models. Though Sony comes with multiple appendages that Apple will have to deal with, whether Apple has the sufficient managerial strength to absorb and turnaround a beleaguered corporate [entity] like Sony is suspect.”

Full article here.

MacDailyNews Take: Sounds like somebody’s pumping some SNE.

119 Comments

  1. I was one of the many without foresight had been asking for this acquisition of SONY by Apple for almost 4-5 years now. Looking back, it would have been messy and Apple’s laser focus would have been distracted.
    I wish this wouldn’t take place. I can’t see Apple needing dying resources like optical media, semi baked handsets, or even the gaming platform that doesn’t fit into the iOS future. The media content (movies, music etc.) side of SONY also requires saving and Apple can’t afford to learn and then tread on an unfamiliar territory of content creation. Too much risk and no guarantees of a large payoff.
    Apple could use the SONY TV, but why not just go into an agreement with them, like they had in the early days with the Macintosh TV®.

  2. I was one of the many without foresight had been asking for this acquisition of SONY by Apple for almost 4-5 years now. Looking back, it would have been messy and Apple’s laser focus would have been distracted.
    I wish this wouldn’t take place. I can’t see Apple needing dying resources like optical media, semi baked handsets, or even the gaming platform that doesn’t fit into the iOS future. The media content (movies, music etc.) side of SONY also requires saving and Apple can’t afford to learn and then tread on an unfamiliar territory of content creation. Too much risk and no guarantees of a large payoff.
    Apple could use the SONY TV, but why not just go into an agreement with them, like they had in the early days with the Macintosh TV®.

  3. Just a thought here. Sony has media holdings? right? Apple can do as good as or better with the hardware / software side, but it might want the media rights to allow better adoption of its Apple side.

    Just a thought,
    en

  4. Just a thought here. Sony has media holdings? right? Apple can do as good as or better with the hardware / software side, but it might want the media rights to allow better adoption of its Apple side.

    Just a thought,
    en

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.