The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Fortune Ponders Apple's $15 Billion Cash

Fortune Ponders Apple's $15 Billion Cash

by , 2:50 PM EST, December 7th, 2007

Apple has US$15.4B in cash. One has to start wondering what Apple will do with it, according to Fortune on Friday. Apple has made some small aquisitions on the past, however, that $15B could buy a lot.

Unlike some of the other big technology companies, like Microsoft, Apple doesn't pay dividends on its stock. So the money just keeps accumulating.

One clue would be to look at history. Apple has purchased some smaller companies to buy its way into key technology markets: PowerSchool for education and Emagic, a video effects company. Some of those acquisitions have not paid off, and Apple sold PowerSchool last year.

Another option is to buy back stock, but Apple has only set aside US$500M for that and spent only $217M of it, a small fraction of its cash. An often overlooked project is Apple's consolidated new offices which could cost $500M when completed.

A final possibility is that Steve Jobs could think big. "Consider this," Fortune proposed. "Just for kicks, with the money burning a hole in Apple’s pocket, he could easily buy TiVo, Netflix and Circuit City, and still have plenty left in the bank."

TMO notes, however, that Apple will probably focus on companies that know how to make big money, not lose it.

Recent Headlines - Updated December 21st

Fri,5:31 PM
Google, Samsung can’t Top Apple’s Unreleased Apple Watch
5:10 PM
Report: Apple Pay is Disrupting and Transforming Mobile Payments
4:04 PM
Apple Raises Prices in Russian App Store Amidst Ruble Meltdown
3:55 PM
The Unexpected Ways Apple Watch Will Crush the Competition
2:29 PM
6-Ft MFi-Certified iOS Lightning and micro USB Convertible Charging Cable: $21
1:41 PM
TMO Daily Observations: 2014-12-19
11:02 AM
Apple CEO Tim Cook Calls BS on BBC iPhone Factory Film
9:11 AM
McDonald’s Supersizes Sales with Apple’s iBeacon Tech
Thu,8:09 PM
BBC Films ‘Apple’s Broken Promises’ for Worker Conditions in Pegatron iPhone Factory
6:20 PM
Save 96% on The World’s Largest iOS 8 + Swift eLearning Bootcamp
5:30 PM
Apple Pay Expansion Worldwide Will Have Vast Repercussions
2:07 PM
The Story Behind Apple’s ‘The Song’ Commercial (Video)
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!