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I'll bite. Apple's cash on hand in Q3 was $261.5B. Company Market Cap ($/Billion) ------- ---------------------- Twitter 12.6 Tesla 5
by mburns 9y ago
I'll bite. Apple's cash on hand in Q3 was $261.5B.
Company Market Cap ($/Billion)
------- ----------------------
Twitter 12.6
Tesla 57
Netflix 76.5
Foursquare 0.7
Nokia 34
Time Warner 85 ('tv network', 'hollywood', with some additional overhead)
Totals to $265.8B, just a hair over our imaginary budget if they did a 100% buyout. Presumably, Apple would sell off parts of Time Warner that weren't The CW, HBO, Warner Bros.
What Apple would have had to pay for Yahoo would have varied quite a bit(+/- $40B?). Nintendo($53B) and Disney ($154B) are a bit further of a stretch. Amazon($460B)/Facebook($492B) are more than half the size of Apple, effectively out of reach.
- emn13 9y agoThey'd probably have to pay taxes to repatriate that cash to buy those firms, however, and buying a firm has costs of its own (not just overheads, but you obviously need to pay more than the market cap usually). So this amount is well beyond reach (using only that 260B cash on hand, and wtf that's an unimaginable amount).
- Retric 9y agoYou don't need cash on hand for the full price of a company. ~10x leverage is possible so they have a ~ 1-2 Trillion dollar budget. PS: They can also create a foreign subsidiary to make the purchase thus avoiding taxes.
- emn13 9y agoDefinitely. But the parent poster I was replying to was suggesting you could do it merely with cash in hand - and that's not going to be doable. I mean, I'm not saying the scenario is particularly realistic: it's an absurd hypothetical wherein they'd want all these companies, and want to use cash alone to boot :-).