Posts filed under “M&A”

A Modest Proposal (in More Than 140 Characters)

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My Sunday Washington Post Business Section column is out. This morning, we look at a pretty rad option for Apple and its cash hoard: Buying Twitter.

The print version had the full headline A modest proposal (in more than 140 characters) of what Apple should do with its cash hoard.  (The online version is merely Why Apple should use its cash hoard to buy Twitter).

As noted earlier this week, Apple has gained zero traction in Social, which has become the hottest trend in technology this decade.

Here’s an excerpt from the column:

“One acquisition stands out to me as a model for what Apple could do: Google’s all-stock acquisition of YouTube for $1.65 billion in 2006.

Essentially, it was free. The market rallied Google’s stock enough on the news that the acquisition had an effective cost of zero (though it was slightly dilutive to earnings). YouTube became one of the fastest-growing parts of Google, replacing the underperforming Google Video. Monetization of YouTube appears to be increasingly close.

And Apple? Its history is primarily of small, almost tactical purchases. Even its biggest buy, the 1997 purchase of Next Computer that returned the prodigal son Steve Jobs to Apple, was “only” $400 million.

But Apple was a very different company then — a small, niche computer maker, with a visionary at the helm. The Apple of today is a giant consumer electronics firm, selling mobile devices, telephones, tablet computers and, in the near future, televisions. Maintaining mindshare, staying on the cutting edge of consumer tastes, is more important to Apple today than it was 15 years ago.”

I really like what the Post did in the dead tree version of the paper, the art work is whimsical.
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click for ginormous version of print edition

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Source:
Why Apple should use its cash hoard to buy Twitter
Barry Ritholtz
Washington Post, March 25, 2012
http://www.washingtonpost.com/apples-hoard-and-how-it-should-be-used-think-twitter/2012/03/19/gIQAS7TfVS_story.html

Washington Post, March 25, 2012 page G6 (PDF)

Category: Apprenticed Investor, M&A, Technology

Why Apple Should Grab Twitter

Now we know what Apple is going to do with some of their $100B cash pile: Pay a dividend and buy back stock. Facebook’s IPO is rumored to go out at about the same amount as Apple’s cash pile: $100 billion dollars. No, I am not suggesting Apple buy Facebook. (Zuckerberg has his own path…Read More

Category: M&A, Technology

The Battle Of The Rails

Similar to the Big Bank chart we ran on Monday, this graphic shows a series of mergers in the rail shipping industry over the past 50 years has led to the creation of four freight rail giants that now control 90% of all business.

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Click to enlarge:

Read More

Category: Economy, M&A

via Scribd: BofA Merrill Lynch How Did a Private Deal Turn Into a Federal Bailout

Category: Bailouts, M&A, Really, really bad calls, Think Tank

Long Overdue: BofA to Spin Out Merrill?

Its just a rumor, but WTF: Maybe Bank of America IS following part of our advice, spinning out Merrill Lynch in a sale. I assume this is a quasi-distressed sale, otherwise we’d see an IPO (but for market conditions). Of course, a full blown pre-packged bankruptcy would be the better route. Remember, the bailouts were…Read More

Category: Bailouts, Corporate Management, M&A, Really, really bad calls

China’s European Spending Spree

• Chinese Companies Embark on Shopping Spree in Euro (WSJ)

Category: Digital Media, M&A

Better Legal Advice for Sokol (No, he was not “trapped”)

Time to put on the lawyer hat again: As soon as this story broke, the immediate question was “Why would you be actively trading stocks for your own account when you work for Warren Buffett and recommend acquisitions?” That seems fraught with potential for problems. Does anyone on Berkshire’s legal staff and/or compliance department have…Read More

Category: Legal, M&A

Is Twitter Worth More Than We Think?

> CNBC’s John Melloy mentions what may be the best analysis I’ve seen on the “Charlie Sheen effect.” It comes from Lou Kerner, a keen eyed analyst at Wedbush. (See chart above) Kerner notes that Sheen may be Twitter’s “Lazy Sunday” moment: Content Creators #Winning In December, 2005 a Saturday Night Live skit called Lazy…Read More

Category: M&A, Technology

Top 10 Changes at the NYSE Under German Rule

> The recent a merger chatter between the NYSE and the Deutsche Börse got us wondering: How might life at the NYSE change under their new German management? 10. Effective immediately: No more bell ringing when Chairman David Hasselhoff has a hangover. 9. NYSE changes its tagline to “Das Equities.” 8. Sylvia Wadhwa on the…Read More

Category: Humor, M&A

AOL-Huffington Post: Why the Heavy Breathing?

It’s day two of the $315 million AOL-Huffington Post deal and the non-news just keeps on coming. On the same day that there was $16 billion in M&A, we’re still talking about a tiny deal for advertising inventory. Tim Armstrong’s deal isn’t really the issue. The most important takeaway from the deal is the limited…Read More

Category: Financial Press, M&A