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Pachter: Who Apple should buy

Wedbush analyst Michael Pachter has dismissed Wall Street speculation naming Sony, Disney, EA and Facebook as potential buyout targets for Apple.

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pedrami912945d ago

Was a darned soothsayer.

StanLee2945d ago

What an idiot. Apple cannot buy Sony, Disney or EA. All 3 are too big to absorb. Facebook makes sense but even that's a long shot.

sikbeta2945d ago

Who is surprised here, Mrs lame-speculations appeared from nowhere to talk bs as usual...

feelintheflow2945d ago

Apple has the cash to purchase 50.1% of the stock from EA for sure, Sony for sure and probably Disney, so financially it could easily be done. Purchasing them outright, EA for sure, Sony maybe, and Disney probably not. Thats just looking at the market caps of all three which is the price of the stock right now and the overall amount of shares outstanding. I don't see it happening though.

anh_duong2945d ago (Edited 2945d ago )

think they should buy Orange

Downtown boogey2945d ago (Edited 2945d ago )

Sony as a whole would be too much, I believe.

Steve_02945d ago

@StanLee
While I agree that Apple will not buy Sony, Disney or EA, you are completely wrong about them being "too big to absorb".
Sony's Market Cap: 33.71 billion
Disney's Market Cap: 67.82 billion
EA's Market Cap: 5.159 billion

Whereas Apple's Market Cap = 282.1 Billion. Apple is in fact larger than all three of those companies combined. In fact, Apple is almost 9 times larger than Sony by Market Cap. Apple has over 51 Billion in cash ready for "strategic" acquisitions. While I doubt Apple will buy any of these companies (serves no purpose), if they wanted to, they could effectively perform a hostile takeover of Sony, no question.
Don't believe me? Here: AAPL: http://www.wolframalpha.com...
SONY: http://www.wolframalpha.com...

Apple is bigger than pretty much everyone else right now, they're trading at over $308 per share.

raztad2945d ago

Sony is not an American company. Japan gov wouldnt allow it to be taken over.

Christopher2945d ago

Facebook makes absolutely no sense, actually. They've already invested millions on their own iTunes social network and there is no synergistic opportunities for them with pushing their other products via a Web site like that. If they bought someone, it would need to be able to cross-promote their other products and services.

Steve_02945d ago (Edited 2945d ago )

@raztad,
Just about the only intelligent reply. Yes that's true, and it could be a potential problem. But Apple is in a much more advantageous position than Sony at the moment, and they could very likely perform a hostile takeover with their available revenue. If Sony has enough "disinterested" shareholders, (disinterested meaning not involved directly with the company), then they would likely sell out if Apple were to make a good enough offer, which they clearly are capable of doing.
At disagree's: Go on, show me where I'm wrong. Stop the blind disagree's and prove to me that Apple isn't almost 9 times larger than Sony by Market Cap. I said it before, I don't think Apple will takeover Sony, but the fact is they definitely could.

Edit for spelling.

darthawesome902945d ago

I wouldn't be surprised if Apple did buy Sony though. Think about all of the equipment, patents, etc. that Sony owns.

lastdual2945d ago (Edited 2945d ago )

Pachter DISMISSED speculation about Apple buying out Sony, etc.

"According to Pachter, the iPhone maker would be smarter to stick to what it does best - namely entertainment companies such as Netflix rather than full-blown video game publishers."

StanLatMarveldotCom2945d ago (Edited 2945d ago )

I'm not talking about financially. In terms of size, Disney, Sony and EA have too many subsidiarys for Apple to absorb. Disney and Sony have subsidiary's in other entertainment genres like film and Sony's electronics business. Absorbing those businesses will cost millions to diversify and redispurse resources. Adding those overheads will be costly. EA's value isn't monetary but the overhead of its studios. You can't look at each's networth. You have to also consider debt, infrastructure and organizational structure. Absorbing either will mean entering other industries at a cost, huge costs.

rezzah2945d ago

Last year Disney bought over Marvel for about 3 billion! Imagine what the cost for Disney would be.

frostypants2945d ago

Apple could probably afford Netflix, and that would make some sense as they are trying to get into that space. AppleTV really didn't take off, and it even supports Netflix streaming now.

That's where I'd place my bet.

Calmz_Angel2945d ago (Edited 2945d ago )

"Apple is bigger than pretty much everyone else right now, they're trading at over $308 per share. "

You my friend have absolutely no idea what you're talking about. The price per share is in no way linked to how "big" you are as a company.

Citigroup's market cap is $121.14 billion. Do you know how much their shares cost? $4.18 per share. Using your logic they have got to be one tiny company.

Apple cannot in any way buy all of Sony. Sony is too big for them. You've got to be ignorant to think otherwise.

AAACE52945d ago

While all of you keep doubting you forget, all of the listed companies haven't been doing well! They aren't the powerhouses we like to believe they are.

Disney has been trying their best to come up with material that people are interested in since Pixar went their own way. Parks haven't been doing well since 2001.

EA is a big company with a lot of assets, however, thay have had to shutdown several studios to cut losses. Franchise like Live are dead. Madden sales have shrunk. Rarely do they get a game that can pick up the slack.

Sony lost tons of cash with the Ps3 launch. Game sales are nowhere near what they expected them to be. So that old saying of losing money on the system and making it back with game sales hasn't been working. Psp has never lived up to it's potential. Psp go was pretty much a waste of time.

Their phones haven't been selling. Their MP3 player sales are similar to Zune sales, if not worse. People aren't buying HDTV's like expected. Due to Netflix, Red Box, Blockbuster, etc. Bluray players haven't been selling the way they should. Bluray disc sales still haven't caught on considering movies cost more and only look and sound a little bit better to the typical consumer.

RememberThe3572945d ago (Edited 2945d ago )

Your entire comment is too simplistic to take seriously. The possibility of Apple buying up these companies is slim. If yahoo can fight off Microsoft then Sony, Disney, and Google can fight off Apple. There is a lot that goes in hostile takeovers and it's something that would ruin Apple's image as the anti-Microsoft, that would not be good for a company that makes it's money on it's image. Besides Apple doesn't seem interested in huge acquisitions like these and more so in companies that would help them do what they already do, but better.

Their are also things that the company can do to protect itself. In situations like these Sony/Disney/anyoneelse would only really have to accept bids that are almost double their market price since they can say that their long term plan has not had a chance to play out. In Sony's case they can argue that their stoke price is below it's actual value. In the case of Google or Disney a hostile take over would be almost impassible since most of their stoke is own in-house.
http://www.thedeal.com/news...
http://www.financierworldwi...
http://uk.reuters.com/artic...
http://uk.reuters.com/artic...

Taking over a multinational corporation would be too costly to attempt hostilely. Who knows though, I'm by no means an expert. This has made for some interesting conversations and thoughts, though.

Sorry for the long edit I had more to say :)

The Lazy One2945d ago (Edited 2945d ago )

The most important thing to consider when looking at apple is that it just wouldn't make sense for them to take over a huge company.

If anything they should buy a bunch of smaller companies if they want to diversify.

Absorbing a huge company takes a lot of time. Sony is a lot bigger than apple, they are just worth less.

Why buy sony when you could buy Acer (hardware), zynga (social games), Take Two (hardcore games), and any number of other companies FOR THE SAME PRICE. If they were buying a large company it would be more for the company's name than for their capital, and I just don't see the point in that. It's not like Apple has a bad reputation right now.

edit: they could also buy into any number of other tech industries by buying smaller companies. They could get their hands in literally every tech industry for that amount of money without having to deal with the overhead of buying an enormous company.

Fan Tastic2945d ago

They should be Pachter's mom, good bargain :D

Steve_02944d ago

@StanLatMarveldotCom,
You're right, market cap is by now means the only way of measuring the size of a company, but it's often the most common one. Obviously it's a lot more complex than that, but there's people out there stating "No way! Sony is X times bigger than Apple!" which, when you consider market cap, is completely wrong. I'm just saying that's Apple's in a much better position to take over a company like Sony than people realise (although I really doubt they would). A hostile takeover would be difficult, but considering Apple's resources, many shareholders may sell out to a good enough price.

@Calmz_Angel,
sigh. You obviously misunderstood my comment. Share price has everything to do with the size of a company, although not on it's own. The market cap figures that I stated are equal to the share price x outstanding shares. I put in Apple's share price because trading at over $300 is a huge hurdle they've overcome considering how Apple was doing ≈20 years ago. And over $300 a share is impressive given the amount of outstanding shares Apple has - leading to that huge Market Cap.
Obviously, it's not as simplistic as comparing market cap, but it's a very important asset in comparing companies. I've shown how by Market cap Apple is easily much larger than Sony, and it's well known that they have resources almost double Sony's market cap put away. If they were to attempt a hostile takeover, all things considered they would be able to offer Sony's shareholders a good price per share.
"Apple cannot in any way buy all of Sony. Sony is too big for them. You've got to be ignorant to think otherwise."
Explain to me by what measure you're using. Exactly why would it be impossible for Apple to acquire Sony, putting aside any complications between the Japanese gov't and such. I've stated my figures and given my sources, unless you have something tangible to back up you're claim then I'm certainly not the ignorant one in this context.

@The Lazy One,
None of us seriously expect Apple to attempt a takeover of any of these companies, looking at their history with acquisitions it seems unlikely. Rumors of Apple v Sony tend to come up every couple of years for some reason, 20 or so years ago Sony was rumored to be acquiring Apple, and about 2 years ago the opposite. Looking at Apple's recent surging success, and especially when comparing Market Cap (although this is by no means the only important figure, just the most prominent), it's silly to think that it wouldn't be possible.

+ Show (16) more repliesLast reply 2944d ago
XactGamer2945d ago

Last time I heard Facebook was valued at 27 billion and MS owns a little over one percent. If Apple buys anyone (big if) the only one they can truly afford is EA. Sony won't sell, Disney owns too much, and others have thier eye on Facebook like MS and Google. IMO this is just a rumor to increase stock value.

Steve_02945d ago

@XactGamer,
Just in case you didn't see my post above, do some research. Facebook are privately owned at the moment, so their corporate information isn't available. Howver, you are correct that Microsoft has purchased about 1% of the company, valuing Facebook at ≈27 billion.
While I agree that Apple will not buy Sony, Disney or EA, you are completely wrong about them being "too big to absorb".
Sony's Market Cap: 33.71 billion
Disney's Market Cap: 67.82 billion
EA's Market Cap: 5.159 billion

Whereas Apple's Market Cap = 282.1 Billion. Apple is in fact larger than all three of those companies combined. In fact, Apple is almost 9 times larger than Sony by Market Cap. Apple has over 51 Billion in cash ready for "strategic" acquisitions. While I doubt Apple will buy any of these companies (serves no purpose), if they wanted to, they could effectively perform a hostile takeover of Sony, no question.
Don't believe me? Here: AAPL: http://www.wolframalpha.com...
SONY: http://www.wolframalpha.com...

Apple is bigger than pretty much everyone else right now, they're trading at over $308 per share.

SkylineR2945d ago (Edited 2945d ago )

Steve_0 has it spot on. Some people here think Sony is "too big" for Apple to take over. Think again. Apple are sitting pretty on $51bil of their own cash. That's insane no matter how you look at it. Their Mac sales alone are worth $22bil, which doesn't count in ipod, iphone, ipad, OSX revenue...
Last time I checked $280+billion is worth more than $30+billion.

tacosRcool2945d ago

Lets hope Apple won't buy these companies and ruin everything!

The Lazy One2945d ago

@"Steve_0 has it spot on. Some people here think Sony is "too big" for Apple to take over."

they are too big. Do you know how long it would take to absorb an international company the size of Sony? Sony has a lot tied up in investments, and that's why their market cap is low. They are still an ENORMOUS company.

Apple COULD take them over, but it would be reasonably stupid of them to do so.

+ Show (1) more replyLast reply 2945d ago
Rusco872945d ago

Ban anything to do with this F*cker! no body cares what this F*ck whit thinks!

Christopher2945d ago

There are a lot more sites/people that are ahead of the ban line than Pachter. At least his news is relevant, even if he's only right 25% of the time.

SkylineR2945d ago

Agreed. The dweeb was the one who started saying it would be a "good idea" for Activision to charge for online multiplayer on consoles/COD games.

visualb2945d ago

and send him to outer space HAH

The Creep2945d ago

Microsofts revenue is greater than all of them loool

feelintheflow2945d ago

Did you actually read your link, Creep said Microsoft has revenue greater, which at the end of your linked article it states that very same thing. I assume you were thinking market cap, which is price of stock x available shares. Reading is fundamental.

The Creep2945d ago (Edited 2945d ago )

loooooooooool @ goodfellas27

he saw the title and got happy

PS360fanboy2945d ago

Sony wish Apple bought it...they're in a 40.8 billion dollars debt hole and those 52 billion would certainly help.

But Apple doesn't need Sony at all, why would them buy it?

The Creep2945d ago

microsoft should buy EA

+ Show (3) more repliesLast reply 2944d ago
Cold 20002945d ago

I hope they buy Sony just to see you guys go ape $hit.

Strange_Evil2945d ago

Ya and see the end of hardcore games.. Face it, MS and Nintendo focusing on casual shovelware (along with Apple with it's 'i' devices) leaves only Sony who pumps out new IPs and doesn't count on the usual sequel routine for 2 games you have in the roster....

If in some magical way Apple takes over Sony, then it's goodbye to gaming as we know it...

darx2945d ago

"and doesn't count on the usual sequel routine"

Riiight!

You love smelling Sony's balloon knot.

NewsForMe2945d ago (Edited 2945d ago )

You act like Sony is the only company making games. There are countless companies making high quality multiplatform games that aren't casual shovelware. You people really need to stop acting like Sony is the Golden God that is saving gaming. The fate of gaming in no way rests in Sony's hands. I hope you're at least getting paid to suck Sony's cock.

XactGamer2945d ago

When is the last time Sony atually had an IP to releaase?

Strange_Evil2945d ago (Edited 2945d ago )

@darx... 360 AAA exclusives for the past 3 years (meta 90 and above)...

Gears of War-2006
Halo 3-2007
Forza 2-2007
Gears of War 2-2008
Forza 3-2009
Halo Reach-2010

And I can gurantee you next year there also will be only 1 single AAA exclusive on the 360 and that will be:
Gears of War 3-2011....

I dunno about you guys, but I see a pattern here... I'll increase that 2 to 3 (including Forza)..

http://www.metacritic.com/b...

^^^ Here is the source if you think I am pulling things from my @ss...

@Xact Gamer...

Sony New prominent IPs this gen....
Resistance franchise
Uncharted Franchise
Infamous Franchise
Little Big Planet franchise
Demon Souls
Motostorm franchise and many more....

Successful IPs released this year...
Heavy Rain, Modnation racers etc

Next year upcoming IPs....
The Last Guardian, Agent etc.....

The last IP 360 was Alan Wake which got some critical success (83 meta), but before that... Hardly anything apart from Gears... Spin it however you want Sony pulls out more quality games than MS in terms of exclusives.

darx2945d ago (Edited 2945d ago )

What are you talking about? You posted "doesn't count on the usual sequel routine" not me.

Killzone 3
Uncharted 3
LBP2
Resistance 3
WKC 2
Infamous 2

all of those are sequels in case you did not know.

And next year we will have MOD nation racers 2, Heavy Rain 2, etc. Looks like Sony is counting on those sequals as well.

Strange_Evil2945d ago

@Darx.. Read what I wrote... "doesn't count on the usual sequel routine for 2 games "... Ya of course Sony has sequels lined up, but it's not like KZ3 next year, UC3 year after that, KZ4 the next year after UC4 and so on.... It's been the same old routine for the 360 for the past 3-4 years.... Prove me wrong I have posted the metacritic link (which is most widely used to judge a AAA game) and name a 360 exclusive (not XBL) which isn't Halo, Gears or Forza..... Even the prominent exclusives like Mass Effect series and Bioshock series are now on the PS3....

Don't chop up my statement and nick pick words out a half one.

XactGamer2945d ago

Well said darx both MS and Sony have been lacking in new IP's. Thats why everything has a 2 or 3 behind the name. Heavy Rain and Alan Wake are the only two new games released this year.

darx2945d ago (Edited 2945d ago )

A sequel is a sequel.

Steve_02945d ago

@Persistantthug,
"Sony is many times bigger than Apple.
Not ever gonna happen."

I don't think it'll happen either, but you're dead wrong. Apple (AAPL) is almost 9 times bigger than Sony (SONY) by market cap.
AAPL: 282.1 billion
SONY: 33.71 billion
Apple have almost 51 billion in "cash" at the moment.

bozebo2945d ago

this would end the console industry and leave pc gaming the only sensible platform. (ms and nintendo pushing motion sensing too much).

raztad2945d ago

@Xact

Get your facts straight dude.

Last year Infamous, Deamons Souls

This year: MAG, HR, ModNation Racers

Next year: The Last Guardian

Dont want to go back to 2008-.

cool cole2945d ago

Actually Sony's symbol is SNE.

+ Show (10) more repliesLast reply 2945d ago
Shadow Flare2945d ago

I remember seeing you guys go ballistic when bluray annihilated hd-dvd. In fact, you guys didn't go ape at all because you all just ran. We didn't see any of you trolls on this site for a good month, and some never came back at all

Count2945d ago (Edited 2945d ago )

Why?

If they're trolls, then that shouldn't have mattered.

AceofStaves2945d ago

Sony's gaming strengths plus Apple's strong brands and marketing savvy?

The ones going ape$hit would be the Xbox fanboys. It would spell the end for MS's gaming division, given the pressure that division already faces from shareholders.

That would be fun to see, now that you mention it.

perfectCarbonara2945d ago

Exactly, I actually think good could come from this. It won't happen, but it wouldn't be the end of the world, quite the contrary even.

SSKILLZ2945d ago

And with this rumor of apple buying Sony , there probably craping there pants. M$ gaming division will crumble or focus on kinect games, when there gaming division crumbles the explotion will be of a magnitude so greate it will eliminate 360 fanboys and troll for good. Kind of sounds Like the second coming of Christ.

gunnerforlife2945d ago

yes that would be great! but i do not want to pay 1000 pounds for a ps4 when in real time it should cost 400

ryuzu2945d ago

Tough to be the minority, but I'm afraid times have changed and MS with it's 360 cheerleaders have deserted N4G.

Sorry 'bout that.

r.

XactGamer2945d ago (Edited 2945d ago )

Apple and gaming just don't mix

Strange_Evil2945d ago (Edited 2945d ago )

Double post

+ Show (5) more repliesLast reply 2945d ago
NYC_Gamer2945d ago

Apple could buy Nvidia for all we know...

Letros2945d ago

Yea but Jen-Hsun Huang would want to be the CEO of the resulting company, like when AMD almost bought them out.

nickjkl2945d ago (Edited 2945d ago )

they could with litle dificulty why would they though is debateable

who ever disagreed doesnt know anything

apple is on a whole nother level than nvidia apple revenues 42 billion last year nvidia 3.3 billion

apples operating cost is more than what nvidia makes in a year almost 4 times as much

Wizziokid2945d ago

apple should be orange and have a banana

GodsHand2945d ago

Bananas would need a different climate.

But they should definitely buy oranges.