“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.
Sony is buying Apple!
Sony is buying Apple!
Sony is buying Apple!
Sony is buying Apple!
Apple is buying Sony!
Apple is buying Sony!
Apple is buying Sony!
Apple is buying Sony!
Rumors, recycled bass ackwards this time, but bullshit again, nevertheless.
I can only see this happening if Apple acquires a particular division, most likely their computer entertainment (which is where the Playstation line resides) and/or movie and music divisions.
As a company, Sony is like many other Asian companies in that they’re a gargantuan conglomerate that reaches into a multitude of different industries. For example, they have a financial services operation that includes banking and insurance.
Apple is a narrowly focused operation, while Sony branches out into a whole slew of different areas. The corporate cultures are very different — Sony creates a full lineup of consumer electronics products and formats. Apple only focuses on those product lines that have the highest growth and margins.
Also, Sony tends to keep producing legacy products. For example, even though they developed the CD format, Sony ironically never stopped making turntables. They only stopped making Betamax VCRs a couple of years ago, and it was only yesterday that Sony discontinued the Walkman cassette player line.
I don’t see Apple as a fit for a company that casts as wide an umbrella as Sony. Plus, as others have pointed, Sony is a Japanese company and you got foreign ownership restrictions. No way Apple takes over the entire operation, but it’s very conceivable that they would take over specific subsidiaries.
I can only see this happening if Apple acquires a particular division, most likely their computer entertainment (which is where the Playstation line resides) and/or movie and music divisions.
As a company, Sony is like many other Asian companies in that they’re a gargantuan conglomerate that reaches into a multitude of different industries. For example, they have a financial services operation that includes banking and insurance.
Apple is a narrowly focused operation, while Sony branches out into a whole slew of different areas. The corporate cultures are very different — Sony creates a full lineup of consumer electronics products and formats. Apple only focuses on those product lines that have the highest growth and margins.
Also, Sony tends to keep producing legacy products. For example, even though they developed the CD format, Sony ironically never stopped making turntables. They only stopped making Betamax VCRs a couple of years ago, and it was only yesterday that Sony discontinued the Walkman cassette player line.
I don’t see Apple as a fit for a company that casts as wide an umbrella as Sony. Plus, as others have pointed, Sony is a Japanese company and you got foreign ownership restrictions. No way Apple takes over the entire operation, but it’s very conceivable that they would take over specific subsidiaries.
@Viking
“The PS3 is hands down the best console out there.”
I have a PS3 and I find the UI to be a clusterf**k. And I don’t think you can say ‘hands down’ in this case. One might have some features that are better over others, but there are plenty of things the PS3 could do a LOT better.
@Viking
“The PS3 is hands down the best console out there.”
I have a PS3 and I find the UI to be a clusterf**k. And I don’t think you can say ‘hands down’ in this case. One might have some features that are better over others, but there are plenty of things the PS3 could do a LOT better.
Apple buyin Sony is ludicrous. Apple buying Sony Entertainment is plausible.
Control of Sony Entertainment, which includes a huge movie, television, music and game library, a movie studio (was MGM), and an animation studio, and a record company would be an instant game-changer for Apple’s media strategy.
Think of all that existing content (and all future content from those divisions) being available via Apple’s delivery systems. Combined with Steve’s influence over all of Disney’s properties, Apple would be able to lead the entertainment industry in digital distribution of content. In teems of movie and television content, this would put the other big players (NBC-U, Warner, Fox) in a position to have to negotiate to play too. This is to say nothing of games, music, etc.
Truly, this would be a seismic event in the world of entertainment.
Apple buyin Sony is ludicrous. Apple buying Sony Entertainment is plausible.
Control of Sony Entertainment, which includes a huge movie, television, music and game library, a movie studio (was MGM), and an animation studio, and a record company would be an instant game-changer for Apple’s media strategy.
Think of all that existing content (and all future content from those divisions) being available via Apple’s delivery systems. Combined with Steve’s influence over all of Disney’s properties, Apple would be able to lead the entertainment industry in digital distribution of content. In teems of movie and television content, this would put the other big players (NBC-U, Warner, Fox) in a position to have to negotiate to play too. This is to say nothing of games, music, etc.
Truly, this would be a seismic event in the world of entertainment.
Apple buy Sony? Not gonna happen.
Apple buy Sony? Not gonna happen.
Why does it feel like August this week in tech journalism? “Death Of” stupid rumors following the new MacBook Air release. “Apple eyeing” stupid rumors following blahblahblah about Apple’s cash reserves. The ‘Will Apple Buy Sony?!’ rumors were stupid years ago and remain stupid today.
Sony’s work culture alone is entirely antithetical to Apple’s. Sony’s Marketing-As-Management is driving the company into the grave. All Apple would want from that mess would be a few Sony patents.
There is no point in Apple buying anything extraneous to the company. Apple are geniuses at their chosen niches. To toss a collection of ‘whatever’ into the company does nothing but create its own drain. If you’d like a perfect example, witness this history of Eastman Kodak. They threw their cash stockpiles out the window at any passing fancy. The pinnacle of stupid was when Kodak bought Lehn and Fink, the then makers of Lysol products. Rapidly thereafter Kodak was hit with, among other things, the digital imaging revolution which has essentially killed off their cash cow film industry. The company is now less than less than 7.2% of its former self. If Kodak had more wisely used its cash reserves, it would have had a far better future.
There has to be something better to write about this week than worthless rumor mongering.
Why does it feel like August this week in tech journalism? “Death Of” stupid rumors following the new MacBook Air release. “Apple eyeing” stupid rumors following blahblahblah about Apple’s cash reserves. The ‘Will Apple Buy Sony?!’ rumors were stupid years ago and remain stupid today.
Sony’s work culture alone is entirely antithetical to Apple’s. Sony’s Marketing-As-Management is driving the company into the grave. All Apple would want from that mess would be a few Sony patents.
There is no point in Apple buying anything extraneous to the company. Apple are geniuses at their chosen niches. To toss a collection of ‘whatever’ into the company does nothing but create its own drain. If you’d like a perfect example, witness this history of Eastman Kodak. They threw their cash stockpiles out the window at any passing fancy. The pinnacle of stupid was when Kodak bought Lehn and Fink, the then makers of Lysol products. Rapidly thereafter Kodak was hit with, among other things, the digital imaging revolution which has essentially killed off their cash cow film industry. The company is now less than less than 7.2% of its former self. If Kodak had more wisely used its cash reserves, it would have had a far better future.
There has to be something better to write about this week than worthless rumor mongering.
Not Gonna Happen
Apple doesn’t need PlayStation. Apple could much, much more cheaply develop its own gaming console and corresponding App Store for games than buying Sony and having to straighten out all of Sony’s problems.
Plus, the console gaming market is a stagnant industry. It has a limited demographic and not one that Apple is that keen to solicit for games.
Slow news day. Had to recycle old, old rumors.
Not Gonna Happen
Apple doesn’t need PlayStation. Apple could much, much more cheaply develop its own gaming console and corresponding App Store for games than buying Sony and having to straighten out all of Sony’s problems.
Plus, the console gaming market is a stagnant industry. It has a limited demographic and not one that Apple is that keen to solicit for games.
Slow news day. Had to recycle old, old rumors.
Not so sure. Jobs has worshipped Sony in the past and modelled Apple on the Japanese company. If Apple bought Sony, it will surely take a ruthless axe to stripping out all the dead wood (and selling it on) whilst keeping the good bits.
Not so sure. Jobs has worshipped Sony in the past and modelled Apple on the Japanese company. If Apple bought Sony, it will surely take a ruthless axe to stripping out all the dead wood (and selling it on) whilst keeping the good bits.
if Apple wanted Sony, it would because of content – video, tv, music, movies, etc
if Apple wanted Sony, it would because of content – video, tv, music, movies, etc
This would be exactly as dumb and shortsighted as Adobe buying Macromedia.
This would be exactly as dumb and shortsighted as Adobe buying Macromedia.
@Mike,
Look at LT Investments. In Apple’s 10Q, they point out that the LT Investments number is composed of the same high-quality instruments as in the ST Investments category, mostly US Treasuries. The only difference is the term. Essentially, one would treat it all as Cash or the like. Altogether you have about $51B in Cash and the like.
@Mike,
Look at LT Investments. In Apple’s 10Q, they point out that the LT Investments number is composed of the same high-quality instruments as in the ST Investments category, mostly US Treasuries. The only difference is the term. Essentially, one would treat it all as Cash or the like. Altogether you have about $51B in Cash and the like.
I believe that if Apple wants into the game market they would build their own not buy their way in. The semiconductor business makes more sense but seems unlikely
I believe that if Apple wants into the game market they would build their own not buy their way in. The semiconductor business makes more sense but seems unlikely
Sony, once the vanguard for quality and revolutionary electronics devices, is now a joke.
Howard Stringer took over Sony in 1997, the same year Jobs took over Apple, and one of them has been a spectacular failure.
Why would anyone want to buy Sony, when Sony doesn’t make anything anyone wants to buy?
Sony, once the vanguard for quality and revolutionary electronics devices, is now a joke.
Howard Stringer took over Sony in 1997, the same year Jobs took over Apple, and one of them has been a spectacular failure.
Why would anyone want to buy Sony, when Sony doesn’t make anything anyone wants to buy?