Rumors: Apple to buy Sony?

Over the past decade, Apple has accumulated an enormous bankroll of over $51 billion, spending only a tiny fraction of it on acquisitions. If the current (wild and wacky) speculation around purchasing Sony holds up, that would change.

At one point on Tuesday, Sony's stock was up almost 3 percent as the rumor spread among the traders on the Tokyo exchange. Sony's market capitalization is currently less than $34 billion, making a cash buyout a possibility.

While Apple has mostly gone from strength to strength over the past 10 years, expanding into new markets like music players and phones, Sony has struggled to gain market traction with its newer products.

However, despite having the money in the bank to do such a deal, buying Sony is likely to be a mistake for Apple. Huge mergers like this rarely work out well, and the differences in the corporate cultures between the two companies could cause some serious indigestion. The Japanese government is also likely to offer some serious resistance to having one of its corporate jewels swallowed up.

Rather than buying Sony whole, it might make more sense for Apple to just buy part of the company, such as its film/music library or the TV business. On the other hand, Apple might just want to look elsewhere to get something that it doesn't compete with, like Disney or Facebook.

[hat tip to MacRumors]

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Source: http://www.reuters.com/article/idUSTRE69P0FX20101026

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Over the past decade, Apple has accumulated an enormous bankroll of over $51 billion, spending only a tiny fraction of it on acquisitions....

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Silvano

Sony Pictures to iTunes store?
Sony DCS in Apple TV?
PSP and PS3 games in iOS devices?

December 27 2010 at 7:16 PM Report abuse Permalink rate up rate down Reply

computerwiz908

rotflmao

October 27 2010 at 12:13 AM Report abuse Permalink rate up rate down Reply

glad

Apple buy Sony that would be one of the biggest mistakes in US corporate history. Sony brings nothing to the table at all. Big pile of cash good keep it there, if the banks had run their financial operations like Apple then we wouldn't all be in such a state. Big cash let it stay there as it's nice to look at and count.

October 26 2010 at 7:47 PM Report abuse Permalink rate up rate down Reply

iPhone user

Apple can't seriously be considering buying all of Sony. Maybe parts of it. Sony has hardware patents and chip manufacturing facilities that might interest Apple.

But the last thing Apple wants to do is inherit Sony's massive inventory of clock radios, rice cookers, TVs, home audio and yes, the once-famous Walkman line. Apple's relatively small product catalog is tightly focused. Sony has tried to make something for everyone. Bad fit.

October 26 2010 at 3:18 PM Report abuse Permalink rate up rate down Reply

MagicFeather

Think outside the box more. Apple would be more likely to buy a solar power company and finally make it mass marketable than Sony. Home automation is a future no one can deny, and nothing would integrate macs better than having a fully green self-sustaining home. SJ has the heart of a hippy and the mind of a capitalist. It could happen.

October 26 2010 at 2:55 PM Report abuse Permalink rate up rate down Reply

direfulburden

this news is silly. at best, it looks like a big game of telephone gone wrong.

October 26 2010 at 2:44 PM Report abuse Permalink rate up rate down Reply

Thomas

why would Apple want to buy Sony? Most of the stuff Sony produces is junk. Sony used to be the quality electronics company, but nowdays they make mostly cheap stuff that's not worth buying.

October 26 2010 at 2:28 PM Report abuse Permalink rate up rate down Reply

Dan Mosqueda

Sam! I didn't realize you were over here at TUAW. Interesting.

October 26 2010 at 2:19 PM Report abuse Permalink rate up rate down Reply

csoakley

This makes no sense. Now if Apple decided to buy a flash memory manufacturer, that is something that I would consider a viable and logical move. All of their products (and the industry in general) are moving in that direction and it would wise to not be subject to supply shortages.

Maybe they already own one; I don't remember. If so, buy another.

October 26 2010 at 1:56 PM Report abuse Permalink rate up rate down Reply

Randy

What part of Sony? SCEA? Sony Music. Sony Entertainment? Sony is huge. I would believe that apple would be interested in a specific division, not the whole.

October 26 2010 at 1:44 PM Report abuse Permalink rate up rate down Reply