Carl Icahn demands $150 billion from Apple

“That was one expensive dinner,” Julianne Pepitone reports for CNNMoney.

“Activist investor Carl Icahn told Apple CEO Tim Cook at a Monday night dinner that he wants Apple to issue a $150 billion buyback of its stock, in a bid to get Apple to return more money to shareholders,” Pepitone reports. “Icahn tweeted on Tuesday: ‘Had a cordial dinner with Tim last night. We pushed hard for a 150 billion buyback. We decided to continue dialogue in about three weeks.'”

Pepitone reports, “It’s unclear whether Icahn wants Apple to start a new buyback, or if he wants the company to expand its current program. Apple already announced in May that it will return $100 billion to shareholders over the next three years, through a combination of stock buybacks and a quarterly dividend of $3.05 per share.”

Read more in the full article here.

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Tim Cook to meet with Carl Icahn on Monday in New York City – September 26, 2013
Carl Icahn scoops up Apple stock on post-iPhone event plummet – September 13, 2013
Carl Icahn buys ‘quite a bit more’ Apple shares following unveiling of iPhone 5s and iPhone 5c – September 11, 2013
Carl Icahn’s ulterior motive: To get Apple to buy Nuance – September 3, 2013
Carl Icahn to dine, discuss buybacks with Apple CEO Cook in September – August 22, 2013
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47 Comments

    1. Of course, this is yet another misleading headline from MDN. He’s suggesting a stock buyback, the point being that the stock is undervalued at its current price. A buyback would increase AAPL share values now, and increase Apple’s value and wealth in the future, as it will own a higher chunk of its more valuable self.

    1. He probably would, because Steve Jobs would have wanted to know what Icahn was wanting and he knew he could always get some nugget of information that he could use.

      Then he probably would tell Icahn to go pound sand.

  1. He can’t screw around with AAPL, the way the does with other companies. AAPL has too much cash. I highly doubt Tim is dumb enough to weaken AAPL’s position by caving to this demand. This is the very reason Steve kept hoarding cash.

  2. The more of Apple stock that’s owned by Apple, the less they’ll have to worry about Wall Street weenies. Icahn’s not doing this because he cares about anything other than himself, but Apple will do better in the long run if its stock isn’t vulnerable to manipulations.

    1. Taking your idea to its logical end, then you are effectively proposing that Dell is in the best position of all – a private company with no Wall Street interference.

      The way Apple is blowing money on Aerobie offices and stupid stock price manipulation schemes, maybe indeed following Dell’s path would suit Cook better.

      I propose instead a much wiser use of Apple assets: build more new products, and innovate more. Improve vertical integration and cut out copycat suppliers like Samsung (and others) from the supply chain. Build more retail stores, not stupid $5 billion immobile spaceships.

      Neither Apple nor its investors nor its users are well served in the long run by Apple blowing its money on a short-term stock play … assuming, of course, you believe that Apple’s mission is to offer computer users the best experience possible. Under Cook, many of us have doubts. Disappointing iOS7 and two versions of dumbed-down OS X, plus the release of less user-customizable machines in favor or pushing subscription-based computing (“iCloud”) leaves plenty of bitter taste. Apple needs to get less corporate and more user-oriented NOW.

      1. Apple cannot become a private company. If they wanted to buy back all their stock, they could buy back all but 1 share, and the owner of that last Share would own all of the equity of the company. The only way they could buy themselves back is to sell themselves to another company, such as a financing company.

        That said, you were complaining about Apple building offices and “stock price manipulation schemes”.

        The complaint about them building offices is strange, all companies that outgrow their offices need to expand or build new offices. That you stated this with the “manipulation scheme” makes you seem like you are trolling.

        Next: “build more new products, and innovate more”. This is pure trolling, this is exactly what Android fans say about Apple meanwhile Android OS is entirely based on ripping off iOS, somehow Apple isn’t innovating because they are not coming out with a new iPhone ever 2-3 years? Innovation is hard and takes time, copying is easy and can be done very rapidly if there are no enforcement of patent rights.

        “Build more retail stores, not stupid $5 billion immobile spaceships.” Again this is amazingly stupid. Apple needs a place to house their large workforce and an office where they can all see and interact with each other is incredibly valuable to the company. That you keep pounding this point means you have no idea what this company does or how or why.

        “Neither Apple nor its investors nor its users are well served in the long run by Apple blowing its money on a short-term stock play” I tend to agree with you here and was not happy when Apple agreed to cave into predatory Wall Street and offer dividends and buybacks. I think their cash is much better suited as a means to invest in their future and allow them to have padding for risks they need to continue to take to keep growing.

        “Disappointing iOS7 and two versions of dumbed-down OS X”
        Maybe their OS X could be better, but iOS 7 is a huge win, and amazingly and astonishingly popular. Over 200 million downloads in one weekend with hardly any complaints beyond “motion sickness” does not support your claim, instead it blows your claim out of the water and sinks it to the bottom of the ocean.

        “Apple needs to get less corporate and more user-oriented NOW.” First, I think Apple should pursue the corporate market more, second I would love to hear what company that you feel is more customer focused than Apple. Google? Microsoft? Amazon? Who?

        You make a few good points but a lot of your post is borderline trolling.

        1. You are wrong. They could go private like Dell and a lot of other companies have done. They file a tender, which is a bid price for all the outstanding shares. This goes to a shareholder vote on the price, and they only need a majority to agree. They do not buy shares in the open market in such a situation.

          If the vote passes, ALL shares are automatically bought at the agreed price.

        2. Very well said. Apple wouldn’t exist if not for Steve Jobs. The Mothership Campus is a great tribute to his legacy. It will be as famous as the Taj Magal, the Empire State Building and so on. I’d give my left nut to work there.

    1. @Wingy: that means Carl Icahn has power to Wall Street connection which influenced AAPL rising up. With that indicated Wall Street is running by the MOBs. So scary, very scary.

  3. I believe in Apple, now and into the future.

    But 10 years ago — hell, even five years ago — a lot of people believed in Research in Motion.

    Look at Microsoft and its bleak current outlook caused by being late to modern mobile.

    My point is that it seems careless to me to part with so much profit as if Apple is immune to the rises and falls in the market. I believe that Cupertino is best positioned to bring us the future due to its culture — but in order to do it most effectively it needs capital.

    As it stands right now, the Internet is too slow to deliver the promises of the cloud and high resolution media content. I’d rather see Apple put $150 billion into solving that problem than to spread it out into the ether so thin that no one notices except a bunch of people who could just as easily pocket more cash on a growing Apple rather than a bleeding one.

    1. You are right on the mark! Icahn is an opportunist jerk who has done next to nothing to add real, long term value to any company with which he gets involved. I hope Cook took a long, hot shower and burned the clothes he was wearing after he had lunch with this parasite. If you think I am being reactionary, with details, prove me wrong and show us all that Icahn does not represent the worse about capitalism.

  4. Carl who???
    75% of shareholders are not loyal to AAPL for any amount of time.
    I would listen to his advice and put it in the pile of other successful investors, but I would NEVER be leveraged by Carl Icahn’s money, influence, or advice.
    Carl is about boosting Carl, not AAPL. SIRI is not AAPL.
    SIRI needed saving, AAPL doesn’t.

  5. I think Icahn’s clout is fading. Look at how he failed with the whole Dell thing. He’s just trying to keep himself relevant. He doesn’t give a crap about Apple or its investors or the people who actually believe in the company.

  6. How the hell does someone with less than1% invested in a company get the balls to tell that company to fork over $150 billion? On another note MDN PLEASE UPDATE YOUR APP. Updates for iPhone 5, iOS 7 hell anything at this point.

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