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TECHNOLOGY Wednesday 3 May 2017

Apple growing cash stash spurs talk of huge acquisition

MICHAEL LIEDTKE
AP Technology Writer
SAN FRANCISCO (AP) —
As Apple’s stash of cash
grows, so does the possi-
bility that the world’s most
valuable company will
use some of the money
for a huge acquisition that
would expand its empire
beyond iPhones and other
gadgets. The company
currently holds more than
a quarter-trillion dollars it
could use to go shopping.
So far, the guessing game
has primarily focused on
possible targets such as
Netflix and Tesla Motors.
Either deal could make
sense, given Apple’s long-
running interest in providing
a TV service to consumers
and its more recent work
on self-driving cars . But in
recent months the take-
over talk has swirled around
whether Apple might do
something even more dra-
matic by making a bid for This Thursday, May 19, 2016, file photo shows the Apple logo on the side of the Apple Union Square store, in San Francisco. Apple
reports earnings Tuesday, May 2, 2017.
Walt Disney Co. Associated Press
THE MOUSE AND THE APPLE
Such a combination would every size of acquisition, so ter. be a major departure for up with another hit prod-
create the world’s first we will see how it goes go- That’s up from $233 billion Apple, whose largest ac- uct since the 2011 death
company worth $1 trillion. ing forward,” Maestri told a year ago, and the figure quisition to date was its $3 of its co-founder and CEO,
Beyond that, an Apple-Dis- The Associated Press in a is expected to keep grow- billion purchase of Beats Steve Jobs. Apple’s last big
ney marriage would unite Tuesday interview. ing as Apple piles up more Electronics in 2014 that success, the iPad, came
some of the world’s most Disney hasn’t given any in- profits from the iPhone, iPad helped launch its music out in 2010, but sales of the
successful brands in tech- clination that it’s looking for and Mac, as well as the streaming service. tablet have been declining
nology and entertainment a buyer, but publicly held applications and services THE SLOWING SMARTPHONE for more than three years.
— a list that includes the companies are required that feed those devices. But Daryanani and other Meanwhile, the iPhone
iPhone, iPad, Mac comput- to consider all takeover of- In its latest quarter, Apple’s analysts believe Apple may accounted for nearly two-
er, Mickey Mouse, Disney- fers. Buying Disney would earnings climbed 5 percent need to make a pricier ac- thirds of Apple’s revenue in
land, ESPN, Lucasfilm, Pixar be expensive. Daryanani to $11 billion while revenue quisition to lessen the com- the past quarter.
and Marvel. estimates that Apple would also rose 5 percent to near- pany’s dependence on The Trump administration
“If there’s a deal out there have to pay $157 per share, ly $53 billion. the iPhone at a time when may give Apple another
that would strike fear in the or about $250 billion. In recent years, Apple has smartphone sales have reason to mull a major
hearts of Silicon Valley and TREASURE CHEST used a large chunk of its been slowing. acquisition, given earlier
Hollywood, this could be it,” Apple is one of the few cash to provide its share- IPhone sales edged up 1 promises to lower U.S. tax-
RBC Capital Markets ana- companies — if not the holders with extra income. percent in Apple’s latest es on overseas corporate
lyst Amit Daryanani wrote only one — that could pay The company disclosed quarter, extending a recov- cash brought back to the
in a recent research report that sum out of its pocket. plans on Tuesday to raise its ery from an unprecedent- U.S. Should that tax cut
assessing the logic of an The Cupertino, California, quarterly dividend by more ed downturn last year. happen, Apple CEO Tim
Apple-Disney combination. company ended March than 10 percent to 63 cents But many investors remain Cook has said the com-
Apple doesn’t discuss spe- with nearly $257 billion in per share, marking the concerned that Apple has pany will consider bringing
cific companies that it cash and marketable se- fifth increase in five years. become too vulnerable to back most of the more than
might buy, but it’s exploring curities, according to num- Apple also has spent $151 the ups and downs of the $230 billion it now keeps in
far and wide, according to bers released Tuesday with billion buying back its own smartphone market, most- foreign countries, making it
Chief Financial Officer Luca Apple’s earnings report for stock since 2012. ly because the company easier to finance a block-
Maestri. “We are looking at the January-March quar- Doing a mega-deal would hasn’t been able to come buster deal in the U.S.q