What To Do With All That Apple Inc. (AAPL) Cash

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Fresh off the heels of activist investor David Einhorn’s lawsuit against Apple Inc. (NASDAQ:AAPL), I couldn’t help but find myself thinking what I would do if I was left in charge of the “think different” behemoth.  While Einhorn’s determination to issue preferred stock with a 4% dividend is a fine enough concept, I am more interested in Apple Inc. (NASDAQ:AAPL)’s ability to generate innovative ideas and products for the future.  Holding $137 billion of cash on hand, there are an infinite number of ways Apple could burn up their cash, as they try to innovate for the long-term.  However, for the sake of simplicity, I am exploring 5 acquisitions Apple could make to entrench their popularity in us for the rest of our lives.

Apple Inc. (NASDAQ:AAPL)

Disclaimer:  Buckle up everybody, we’re diving deep into the right side of my brain and will be looking at things that are not only mere concepts, but highly unlikely to happen.  The thought of Apple Inc. (NASDAQ:AAPL) incorporating so many new companies effectively is next to impossible.  This is simply a brainstorming session of what Apple could do with their cash.  Being an owner of Apple stock myself and dreaming of a fully integrated and interconnected Apple Inc. (NASDAQ:AAPL) world, here are my 5 favorite fantasy acquisitions.


Valued roughly around $11 billion by  Greencrest Capital, a Twitter acquisition would give Apple Inc. (NASDAQ:AAPL) their best chance yet to track Google Inc (NASDAQ:GOOG) down.  In much the same way Google is able to tie their search capabilities into everything from their Chrome browser, to their Android operated phones, Apple would be able to hard-wire Twitter into all of their future iProducts.  By acquiring Twitter, Apple could go head to head versus Google with their newly acquired search capabilities.  Using their Trends List and intra-Twitter search engine, Apple could capitalize on the public’s ability to search for specific news or events, allowing the company to display ads as relevant.  Furthermore, what would make Twitter’s acquisition truly special is their members’ ability to see results from the people and news providers they are interested in following.  This could allow for specialized ads and even micro-marketing, in much the same manner that Google’s advertises with their local searches.

With Twitter buyout rumors having previously circulated, this acquisition may not be completely out of the question.


While I’m on the topic of Apple going head to head against competitors, I’ll announce my next move, a full acquisition of  eBay .  Weighing in with a Market Cap of $72 billion, eBay would deliver a major hit to Apple’s cash reserves, as they would essentially be cut in half.  However, such an acquisition would finally give Apple their strongest case in fighting against the low price marketplace that is  Amazon.com, Inc. (NASDAQ:AMZN).  Considering Apple’s previous acquisition of Twitter, some serious scalability could be recognized in the advertising market.  Furthermore, the  Kindle versus iPad competition would become even more interesting with Apple’s new marketplace in eBay.  Despite this excitement however, it would be the  PayPal business that is the truly interesting play for Apple’s future.

In a world of ever-growing connectivity, the most successful mobile payments provider would benefit Apple everywhere from speeding up sales in its own stores, to simplifying purchases on iTunes.  With the natural link between eBay and PayPal, and a growing presence in the retail community, PayPal shows no signs of stopping and would give Apple tremendous revenue consistency.  With an Apple TV product already released, PayPal would streamline future opportunities with their own line of TV’s, once again through a world of freakish interconnectivity.  On the topic of TV’s…

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