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Apple would be spending half its cash pile to acquire a domestic company. Nearly two-thirds (62%) of the company's sales are international [1]; furthermore, I
by gzp 15y ago
Apple would be spending half its cash pile to acquire a domestic company.
Nearly two-thirds (62%) of the company's sales are international [1]; furthermore, I would guess that much of the company's growth is in international markets, especially in Asia.
Unless Apple is seeking to improve its operational expertise in running carriers in order to buy up carriers throughout the world, this acquisition would be a very curious one.
[1] http://www.apple.com/pr/library/2011/07/19Apple-Reports-Third-Quarter-Results.html http://www.apple.com/pr/library/2011/07/19Apple-Reports-Thir...
- jonknee 15y agoThere are plenty of reasons Apple won't buy a carrier (I think namely because it wouldn't be approved without concessions that Steve Jobs would never live with), but money isn't one of them. Interest rates are very near zero and Apple isn't exactly a credit risk. Not to mention Apple's stock value...
- adamtmca 15y agoIf you are acquiring a 39+ billion dollar company, money is a factor. Considering Apple's capital structure, interest rates aren't really a key consideration here. "Apple's stock value" reflects the fact that they invest in relatively high return projects and that investors expect them to continue to do so. This type of acquisition would not be satisfactory. http://en.wikipedia.org/wiki/Weighted_average_cost_of_capital http://en.wikipedia.org/wiki/Weighted_average_cost_of_capita...
- smackfu 15y agoNote also that much of that cash pile is overseas already, and might have tax implications if it is used domestically.