Carl Icahn’s ulterior motive: To get Apple to buy Nuance

“Investment tycoon Carl Icahn has been bullish on Apple lately. In mid-August, Icahn unexpectedly tweeted that Icahn Enterprises, his diversified holding company, believed Apple to be ‘extremely undervalued,'” John Brownlee reports for Cult of Mac. “Immediately, share prices jumped 5.6%. The next week, Icahn announced on Twitter that he and Tim Cook would be meeting in September to discuss a larger buyback program of AAPL shares. That’s all nice, but Icahn is a business magnate, not an Apple fanboy. So what the heck is he up to here?”

Brownlee reports, “A new theory being put forward by some investors is that Icahn has ulterior motives for his sudden Apple love affair: he wants Apple to buy Nuance, a company Icahn has a large stake in.”

“The thinking goes that Apple might consider itself overly dependent upon Nuance, which sells other voice-recognition solutions to other software providers (like Android) and even makes the popular Dragon Dictate voice-recognition software for PC or Mac,” Brownlee reports. “Apple doesn’t like being too reliant on an outside vendor, so the theory is that Apple should buy Nuance to bring Siri’s core-tech in house for around $7 billion… a mere pittance in Cupertino’s war chest. That would be a good thing for Carl Icahn, who owns a 16.9% stake in the company.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Edward W.” for the heads up.]

14 Comments

  1. Give me a break, Icahn. You bought a lot of AAPL. Then you started pumping the stock to raise its price while simultaneously pushing for increased dividends so that you can squeeze more cash flow out of your investment. If you can also encourage Apple to spend $7B on a company in which you own a substantial stake, then your $1B investment in AAPL will have paid off handsomely. I understand your motivations, but that doesn’t make me like or respect you.

  2. ” Siri’s core-tech’

    Actually, Nuance provides the voice recognition and at least the female voice of Siri. The AI, which I believe is the core technology, was developed by SRI International.

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