Apple is quietly buying companies left and right

[Matrix]

 

 

 

The big picture: Apple on average acquires a company every two to three weeks and has amassed approximately 20 to 25 businesses in the past six months alone. We don't hear about most of them, however, because they're largely talent hires or IP grabs.

In an interview with CNBC over the weekend, CEO Tim Cook said Apple is primarily looking for talent and intellectual property with its acquisitions. “We acquire everything that we need that can fit and has a strategic purpose to it,” Cook said.

Because many of the companies it buys are small, Apple doesn’t feel the need to announce each and every deal publicly. One of its biggest acquisitions in recent memory was of Beats which it paid $3 billion for in 2014.

The aggressive procurement style may remind some of Marissa Mayer’s spending spree after taking the helm of Yahoo years ago. Aside from the fact that Apple is in its prime and Yahoo was struggling to remain relevant, Apple has the money to make some moves. In its latest earnings report, the company said it had $225.4 billion in cash on hand, making it one of the most cash rich companies on the planet.

With all that money, some have called for Apple to spend a bit more freely and acquire a major company like Tesla or Netflix. The current strategy has worked so it's unlikely that we'll see any reckless spending just to appease critics.

 

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[luisam]

16 minutes ago, DonyMach1 said:

One of its biggest acquisitions in recent memory was of Beats which it paid $3 billion for in 2014.

 

Beats Electronics LLC (also known as Beats by Dr. Dre, or simply Beats) is a subsidiary of Apple Inc. that produces audio products. Headquartered in Culver City, California, the company was founded by music producer and rapper Dr. Dre and Interscope Records co-founder Jimmy Iovine.

The subsidiary's product line is primarily focused on headphones and speakers. The company's original product line was manufactured in partnership with the AV equipment company Monster Cable Products. Following the end of its contract with the company, Beats took further development of its products in-house. In 2014, the company expanded into the online music market with the launch of its subscription-based streaming service, Beats Music.

In 2011, NPD Group reported that Beats' market share was 64% in the U.S. for headphones priced higher than US$100, and the brand was valued at US$1 billion in September 2013.

For a period, the company was majority-owned by Taiwanese smartphone maker HTC. The company reduced its stake to 25% in 2012, and sold its remaining stake back to the company in 2013. Concurrently, Carlyle Group replaced HTC as a minority shareholder, alongside Dr. Dre and Iovine in late 2013. On August 1, 2014, Apple Inc. acquired Beats for US$3 billion in a cash and stock deal, the largest acquisition in Apple's history.

 

 

[IronY-Man]

With those facts regarding cash and spending , Apple  = Scrooge McDuck ; no stupid spending left and right but valued returns !