Apple Buying Sony: Not Likely

| Rumor

Rumors that Apple may be buying Sony spread like wildfire Tuesday morning following speculation on what the Mac and iPhone maker could potentially spend its US$51 billion nest egg on. While purchasing Sony doesn’t exactly make sense for Apple, that didn’t stop Sony’s stock from climbing once the rumor hit the Web.

The rumor grew from a Barron’s article speculating that Apple has enough cash on hand to buy Disney, Adobe, or even Sony. Apple CEO Steve Jobs may have unintentionally helped fuel the Sony buyout rumor during his company’s fourth quarter earnings conference call when he said “We strongly believe that one or more very strategic opportunities may come along, that we can take, that we’re in a unique position to take advantage of because of our strong cash position.”

Apple buying Sony? Um, no.

The idea that Apple wants Sony’s gaming business gained steam once the buyout rumor took off, as did the notion that Apple wants its own branded TVs, chip fabrication, and other non-computer electronics.

The likelihood that Apple is seriously considering buying Sony, however, seems a bit far fetched. Apple’s acquisitions tend to focus on specific technologies, and there isn’t any clear indication as to how buying Sony would promote sales of current or planned Apple products and services.

For its part, Sony isn’t likely to agree to an Apple buyout, either.

Unless Apple and Sony drop a surprise buyout announcement, this rumor looks like just speculation taken out of context.

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Comments

mlvezie

What, Jeff? Not going to touch the other rumor, about Apple buying Adobe?

John Martellaro

So what *would* be a “strategic opportunity” be for Apple? Maybe Samsung with its TV, consumer electronics business plus its semiconductor, CPU and Flash memory factories?

John Martellaro

Another thought on Samsung:  Acquisition would include a rich patent portfolio for consumer electronics—including cell phone patents.

JKP

I suspect Apple doesn’t possess the corporate expertise to swallow and integrate a large business. Large M&A wreaks havoc on corporate culture and Apple’s culture is even more unique than most.

Continuing to snap up interesting tech would seem to be more their forte than buying a big, complicated company like Sony.

ziploc

Tie this together with your story on Apple Funding Facebook rumor and maybe you have something.

brett_x

Sony doesn’t make any sense. They don’t do much right really- only their high end components are worth anything. They’ll slap their name on anything - including a baby monitor.

This sounds much more like a hedge fund manager starting a rumor to make a buck (or more likely, a few million).

geoduck

This sounds much more like a hedge fund manager starting a rumor to make a buck (or more likely, a few million).

Exactly.
When I first heard this my immediate reaction was “But what would Apple get out of it?”
My second thought was “This is just somebody trying to push the stock”.

trrll

If Sony made nothing but game systems, maybe. But Apple would be paying for all of the other aspects of Sony’s business, along with the headache of integrating with a primarily Japanese firm, with little benefit to Apple.

Even if Apple decided that they wanted to get into the game system arena, they probably could just weigh in with their own console for the next game generation.

zezao

again this joke?  wink

MacKeeper_fan_Mod

Strange, but I don’t think Sony would want to sell now. They’re doing okay with their cameras and TVs and stuff… I don’t think they would consider being bought.

Also, what would Apple do with all the stuff Sony makes? Would they just shut it all down? Or would they rebrand it all Apple? This doesn’t make sense.

Apple buying Adobe would be more logical, but I don’t think Adobe would want to sell itself either.

gslusher

Maybe Samsung

No way. The South Korean government would never allow it. Samsung is a source of pride for the country.

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