FWIW, Horace on Critical Path says that large M&A is just something Apple doesn't do. It's a recurring topic and he goes over the rationale in this episode. #2

FWIW, Horace on Critical Path says that large M&A is just something Apple doesn't do. It's a recurring topic and he goes over the rationale in this episode. #249: A Sane Amount of Cash http://5by5.tv/criticalpath/249 http://5by5.tv/criticalpath/249 I barely understand what Horace is talking about (square hole, round peg) and would only butcher his thesis. Sorry. These podcasts are in the "think out loud" format, vs finally crafted presentations. So I listen at high speed and rewind to replay the key points. Edit: Gonna risk it. Large M&As are notoriously bad moves. Beats was Apple's largest acquisition, which Horace thinks was ok because it probably broke even. (I have a different take: it was an acqui-hire and they got some head phones as bonus.) Reinvesting cash surplus is also bad, because it's shareholder's cash for them to invest themselves. Also, to do so would make Apple a hedge fund, which is a huge distraction. Horace doesn't touch on Apple style partnerships, the deep investments into their suppliers. Not quite keiretsu. Not quite monopsony. Definitely not WalMart style partnerships, which is very abusive. Maybe more like defense or auto manufacturer partnerships, where it's more mutually beneficial. Like Toyota does. I would love to read case studies about Apple's partnerships.