To date,Apple has more cash than any other technology company on the planet. Yet, that hasn’t translated into spending on acquisitions.
A Crunch base News analysis finds. Over the past five years, Apple has spent the least on M&A out of all the “Big Five” most valuable U.S. technology companies, That’s despite the fact that including money parked in overseas accounts. it is estimated to have more than $260 billion in cash and cash equivalents.
History shows Apple has made these kinds of large deals pretty rarely, While this week’s $400 million acquisition of music discovery app Shazam indicates a willingness to make big-ticket purchases,So is it buying time yet?
Since 2013 the iPhone manufacturer, according to Crunch base data, spent $ 5.1 billion in disclosing M & A deals. More than half of these went on a single transaction: 2014, the music technology company Beats Electronics bought for $ 3 billion.
Looking at deal count alone, Apple looks like a quite active buyer. Since 2013, Apple bought 55 private companies, The $5.1 billion figure includes only those 11 companies of which 11 had a reported price.
There are mainly startup startups for the unknown amount that the remaining 44 companies bought Apple. While the purchase prices can not be confirmed, such deals are usually less than $ 100 million and usually have a total of a few million dollars.
In the chart below, we look at Apple’s track record for M&A over the past five years. Deal count has ranged from a low of eight acquisitions to a high of 13.
Apple’s rank in the Big Five
When it comes to buying startups, Apple isn’t really the least acquisitive of the Big Five (which also includes Amazon,Microsoft, Google and Facebook).
Amazon is actually a stingiest when it comes to opening up for enterprise-backed companies. Compare this, in recent years Apple’s e-commerce giant has spent more on M & A, which is almost entirely $ 13.7 billion due to the purchase of a public company, Wheel Foods.
He said, while Amazon is known to generate huge revenue on a thin-to-non profit margin margin, Apple is a great profitable company. So this comparison is not an apple compared to apples, sorry penalties. In addition, in recent years Apple has not demonstrated hunger to buy public companies.
Between the deal count, meanwhile, the apple is between the Big Five. Its acquisition of information is equivalent to Microsoft compared to Facebook or Amazon, and is far below Google.
In the chart below, we look at deal counts for acquisitions by the Big Five over the past five years, along with disclosed spending.
Spending spree ahead?
There are some reasons to think that Apple will acquire more in the coming quarters, especially for deals related to American companies.
Tax code changes can be a factor. American lawmakers appear close to passing a tax bill, which will make the companies cheaper to return the money currently kept abroad. It could possibly afford a large domestic cash for Apple to buy American companies. Lower corporate tax rates should help to make that huge reserves even bigger.
Apple has also created a strategy to move more manufacturing into the US, and it can lead to deals. This week, the company announced an investment of $ 390 million in Finiser, Texas, which makes components used in the iPhone X cameras. While not an acquisition, while demonstrating the desire to spend heavily on developers of investment technologies, which give their products a competitive edge.
So will 2018 be the year when Apple will finally go for a bid to buy its large-scale cash holdings? Although it seems & Forcing many reasons to say yes, one can not help paying attention that Apple does not deposit that stockpile due to being too expensive. And so far, it does not require a much-priced startup purchase to retain its place as the world’s most valuable public technology company.
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