CGI-Quality said:
They are? Does anyone has sources for this? I've asked once already, but based on what, do they have enough to buy MS? Do people REALLY believe that Apple could, one day, buy MS? Really? |
Apple has $16.7b in cash, $21.4b in short term investments, $24.6b in receivables, and $177.7b in long term investments. For the sake of argument, if they were to use all of that, that would give them $240.4b.
Microsoft's market capitalization is $393b. To buy a controlling share in Microsoft, you would need to buy 50% + 1 shares, or roughly $200b worth. Generally, when you do you do a buyout, you have to do it at a premium. A 20% premium would be $240b. So technically, Apple has enough available to buy Microsoft, even without resorting to a stock swap.
Having said that, this approach is not really possible, as Apple most likely doesn't have easy access to those long term investments (or they may come at a penalty if they are cashed out early). Apple could do a cash + stock deal, where they spend $30b in cash and $210b in stock (where eash MS investor would get 1 Apple share per 2 MS shares, using today's rates). Apple would need to convince their shareholders that this is a good deal, as $210b is just under half the value of Apple.
This whole thing would also have to get approval from the SEC, and considering that both Apple and MS make operating systems, this would essentially give Apple a monopoly. The SEC would most likely block this from ever happening.
And no, I honestly think this will not happen.
