Think Apple is Buying Spotify? Think Again

| Rumor

On Monday, the rumor mill said Apple was buying Sony, and on Tuesday it had moved on to the music streaming service Spotify. Just like the Sony buyout reports, word that Apple is buying Spotify is off-base, too.

The rumor that Apple and Spotify are in buyout negotiations started at TechCrunch. “Apple and Spotify are in on-again, off-again discussions about an acquisition, but at best it’s very early in the process,” the report said.

The rumor made its way to TechCrunch via an anonymous source.

Apple buying Spotify? Nope.

Spotify, however, claims the rumor is simply wrong. “We wouldn’t normally comment on this kind of speculation, but we wanted to make it clear that we have absolutely no intention of selling Spotify,” Spotify spokesman Jim Butcher told CNET News.

He added that Spotify and Apple have never entered negotiations.

Apple CEO Steve Jobs indicated that some acquisitions may be on the way 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,” during the company’s fourth quarter earnings report. He didn’t, however, drop any hints to indicate which companies Apple might have its eye on.

Since Apple has US$51 billion in the bank and people are speculating daily on where that cash will be spent, expect to see even more bogus rumors on which companies are getting bought before an official announcement is made.

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Comments

geoduck

Every time Apple does a financial report, some people fall all over themselves trying to think up ways to spend what Apple has in the bank.

Apple will do what Apple will do. When Apple does acquire some company it will be unexpected, it will be brilliant, and odds are it will blindside all of these ‘financial experts’.

I base that on Apple’s track record.

dlstarr7

What about the new one that Apple is buying Netflix?  That would rock.

Pashtun Wally

I agree that Netflix would be truly strategic for Apple:  not least, it would deal a potentially-fatal blow to Microsoft’s Silverlight - which would certainly NOT remain the necessary piece of the Netflix puzzle in this case.

Instead, Apple - and AppleTV - would leapfrog all streaming & rental competitors in a single “blow’”.

Whether this is a move Apple WILL make is, of course, up to Apple (and Netflix).

geoduck

I really don’t see Apple buying Netflix.
NetFlix does not ‘own’ anything. They have contracts allowing them to act as a distributor. The companies that hold the final rights to the movies don’t like Apple’s control and at the very least would demand usury level terms to continue the contracts.

Monkey

Apple is buying Monsanto. Simply because they wanna prevent them from cloning apples.

geoduck

Apple is buying Monsanto. Simply because they wanna prevent them from cloning apples.

LOL

trrll

I expect Apple to buy companies for technology or perhaps for manufacturing facilities. Netflix is a well-run company, but it is not clear that it possesses any unique technology that Apple needs. I don’t think there is any great advantage to Apple of getting into the DVDs-by-mail business, and Apple already has video streaming. Netflix has negotiated streaming rights to a large number of films and TV shows, but it is not clear that those contracts would carry forward indefinitely if Apple acquired Netflix.

dlstarr7

Netflix is the go-to app for anything mobile or TV at this point.  Streaming is on the Mac and PC, iOS, and it’s in the works for Android.  All the deals are in place!  It’s a awesome idea.

sweyhrich

Well the way _I_ heard it, they are going to buy Microsoft ... shh, don’t tell anyone, it will drive the stock price up…

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