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Apple Inc. (AAPL)’s 3 Possible Value Maximising Moves By Carl Icahn

Drama hasn’t been too far from Apple Inc. (NASDAQ:AAPL) lately, and spotlight has shifted again on the tech giant as the cryptic tweet of the billionaire activist investor, Carl Icahn, became the hot topic for media. Charlie Gasparino of Fox Business shared three possible strategies that Carl Icahn could suggest Apple Inc. (NASDAQ:AAPL) in his open letter, which he tweeted about.

Hedge Fund Strategies

The open letter is to be sent soon to Apple Inc. (NASDAQ:AAPL)’s CEO Tim Cook and from the phrasing of the tweet, it seems that it will be made public. Gasparino asked around in the financial community about the possible contents of the letter and he reached three conclusions.

Firstly, it could be a merging proposition. In this particular case, a possible marriage of Apple Inc. (NASDAQ:AAPL) with Netflix, Inc. (NASDAQ:NFLX) was seen on the cards by a number of analysts that Gasparino talked to about the tweet.

“[…] Carl owns a lot of Netflix, Carl owns Apple Inc. (NASDAQ:AAPL), you know, Netflix has always been thought of as a play for some of those tech media companies like Google Inc (NASDAQ:GOOGL),, Inc.(NASDAQ:AMZN) or even Apple Inc. (NASDAQ:AAPL). This is what people are talking about […],” said Gasparino.

Secondly, Carl Icahn could be on his way to ask Apple for a share buyback program, in order to boost the value the company’s stock.

Thirdly, although it may sound unlikely, but Carl Icahn could be advising Apple Inc. (NASDAQ:AAPL) for some sort of spinoff. Such suggestions have always been roaming in Icahn’s mind, but maybe not with regards to Apple until now.

Icahn has also been in the news lately because of a spinoff that he advised eBay Inc (NASDAQ:EBAY) to do months ago, but the company fought him on it until they just announced to spinoff PayPal themselves a few days ago.

The problem with this strategy for Apple Inc. (NASDAQ:AAPL) is that there isn’t much to spinoff. The phone business is the core of company’s revenues and even a layman knows that it will do Apple no good to spin that off.

Apple Inc. (NASDAQ:AAPL) saw a rise in stock price of about 2.08% yesterday on account of these value creating speculations. The stock was trading at $100.8 at the closing bell.

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