Look what Barron’s wants Apple to buy

From Tae Kim’s Apple’s Next Big Move? It Should Buy Nintendo ($) in this week’s magazine:

Apple needs its next big thing—fast…

In a recent CNBC interview, Cook made it clear that the company continues to ponder large acquisitions, as well: “We’ve elected so far not to do those because we haven’t found one that we said, ‘Wow, that’s a nice intersection of Apple.’ But I’d never rule it out.”

While flashy candidates like Netflix and Tesla often get mentioned, their elevated valuations and cash burn don’t match Apple’s love for high profit margins and financial conservatism.

The best fit for Apple may be Nintendo, its stylistic twin in Asia. Like Apple, Nintendo likes to make money. Both companies have similar attributes: mountains of cash, gushing profits, beloved brands, loyal customers, and sticky ecosystems of software and services.

My take: Of all the Apple acquisition fantasies I’ve read, this may be the dumbest. “Like Apple, Nintendo likes to make money.” Really? Apple generally buys talent and technology, not other company’s aging franchises. Besides, it’s already got Mario in the App Store.

3 Comments

  1. Gregg Thurman said:

    Apple buys a dozen or so Companies every year. With very few exceptions none of those acquisitions were announced or even expected, meaning that Apple has examined all the Companies we/pundits could imagine, and rejected them all.

    Ergo, if the media can imagine it Apple has already rejected it, and any article suggesting an acquisition is baseless click bait.

    Besides, Apple is better served by encouraging iOS platform developers and not seen as a competitor to them.

    1
    January 14, 2019
  2. victor castroll said:

    well, he’s right. but for the wrong reason.

    nintendo would be a fantastic purchase for Apple because it would pretty much game, set and match future generations on iOS. for peanuts…

    developers would welcome apple adding nintendo. brings new users and just makes the pie bigger.

    my take – philip, you’re doing it wrong

    0
    January 14, 2019
  3. David Sauceda said:

    “Nintendo has a market value of $34 billion, but Nintendo is conservative with its capital and has approximately $9.6 billion in net cash. That gives the company an enterprise value of about $24 billion. If Apple offered a 50% premium to Nintendo’s market value—a deal that Nintendo would have to consider—the price tag would come to roughly $40 billion.”

    Yikes! I’m now curious how much profit/revenue Nintendo Switch Online generates monthly and how large the user base is (and is it growing?). Apple certainly desires to extend its subscription service tentacles. Perhaps there could be a play in gaming for them. And if Apple Glasses are the next big thing coming, they could take gaming to a new level. I’m unsure if Nintendo is needed, but I like the idea of a reoccuring gaming revenue stream.

    0
    January 14, 2019

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