Google (NASDAQ:GOOG) to buy Apple (NASDAQ:AAPL)? There are rumors and then there are RUMORS. This one fits in the latter category, with a bullet.
The rumor apparently started with a New York magazine biography of Steve Jobs, penned by John Heilemann, in which he quotes an anonymous friend of Jobs as saying "I think that Google is going to buy Apple. It would be a victory for Apple; they'd get major-league partners, money, and engineers. And it would be a victory for Steve -- a huge win that lets him leave the stage."
According to this anonymous source, Jobs' recent health issues would be the driving force behind this sale. Heilemann also suggests that Apple's corner on the music download business has seen its peak, as it and others jump into the DRM-free market, and as wide-ranging internet access makes the idea of buying tunes obsolete.
Therefore, the iPhone, he concludes, is crucial to Apple's continued success. Depending so heavily on the success of a single product would make any company nervous, and perhaps thereby interested in bringing on partners to share the risk.
Apple currently has a market cap of $105.13 billion, Google $158.88 billion, so such a deal would be beyond huge. However, I question why Google would want to take on a hardware company, unless they intend to declare an all-out war with Microsoft.
I think this is more fantasy than rumor, frankly. However, it's great grist for summer poolside conversation.
Reader Comments (Page 1 of 1)
6-21-2007 @ 12:21PM
tom.barlow said...
I have to respectfully disagree, Charles. This story had already made it to the net (http://mashable.com/2007/06/20/google-to-buy-apple/), so I felt it a service to our readers to let them know of it and from whence it came, so they could discount it as they so chose. The news here isn't the supposed purchase, but the rumor about the purchase, which could have an impact on stock prices.
6-21-2007 @ 1:10PM
Jay said...
Apple's future does not depend upon the iPhone. This is a company that is growing its (high margin) computer market share faster than any PC maker. There are reports that Mac share *tripled* in May 2007 compared to 2006. The back-to-school season has not begun yet and this will result in more market share grabs for Mac. And so will Leopard. Not to mention the long-term potential of AppleTV. The iPhone is huge, to be sure, but to say that Apple's future depends upon it is silly.
6-21-2007 @ 1:50PM
mb said...
give it another 6-12 months at the rate apple is climbing and it could just as easily be the other way around. (since jan aapl is up 45%.. goog is up 8%)
6-21-2007 @ 4:03PM
Little Richardjohn said...
You know what? This is exactly what Pearly Gates deserves, especially after Vista.
It would be what a lot of people would like, especially if it involved the production of a version of OSX which ran on a Dell. And extra-especially if that was offered as a free download.
Jobs could offer it to cyberspace like Robert Johnson giving the world The Blues. Upgrades? Over to the brave boys of Linux.
What would be the point of Windows then?
Sleepless In Seattle? Don't ask.
6-22-2007 @ 5:49AM
Warren said...
I thought it was interesting. Thanks for the post!