October 26, 2010
Rumors Of Apple Buyout Of Sony Fool Stock Market
Rumors surfacing about Apple buying out Sony Corp sent up Sony's shares up 3 percent at one point on Tuesday, until analysts dismissed the speculation.
A report in Barron's, a stock investment magazine, said Apple could be contemplating a big acquisition, listing Adobe, Sony and Disney as potential targets.
However, Eric Savitz, the author of the report, said on Tuesday that he wanted to clear up misconceptions about Apple potentially buying out Sony.
He wrote in a blog post on Barron's website, "In the piece I noted that the company could do something aggressive, like bidding for Adobe, Sony or even Disney. But that was pure speculation. Yeesh."
On a conference call with investors and reporters Apple's Chief Executive Steve Jobs was asked what the company would do with its cash stockpile of $51 billion.
"We would like to continue to keep our powder dry, because we do feel that there are one or more strategic opportunities in the future," Jobs said.
Analysts who follow technology downplayed the possibility of Apple acquiring Sony, or any other major company.
"We don't see any acquisitions of any size," Ashok Kumar, an analyst with Rodman & Renshaw in New York, told Reuters. "Apple is happy to keep its cash under the pillow."
He said a deal for Sony would be unlikely. "It would be a cultural miss," Kumar said.
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