Will Apple acquire Sony? Rumors and facts

On the basis of a Barron’s report media sources reported that Apple may consider the acquisition of Sony which took the stocks of the latter up 3%. Reuters reported that Apple currently has $50 billion in cash reserves while Sony has a market cap of $34 billion. So, financially speaking, Sony is a strong possibility for Apple.

Barron’s said that cash-rich Apple could be contemplating a big acquisition and noted speculation about Adobe, Sony and Disney as potential targets.

In his blog post on Barron’s website the author of the report that caused much stir, Eric Savitz said: "In the piece I noted that the company could do something aggressive, like bidding for Adobe, Sony or even Disney. But that was pure speculation. Yeesh." And many analysts later dismissed the possibility of the acquisition.

Earlier this month when, on conference call with investors and reporters, Chief Executive Steve Jobs was asked what the company would do with its $51 billion in cash.

"We would like to continue to keep our powder dry, because we do feel that there are one or more strategic opportunities in the future," Jobs said.

However, analysts who follow technology downplayed the likelihood that Apple would chase Sony -- or any other major acquisition.

"We don't see any acquisitions of any size," said Ashok Kumar, an analyst with Rodman & Renshaw in New York. "Apple is happy to keep its cash under the pillow."

Kumar said a deal for Sony would be particularly unlikely. "It would be a cultural miss," he said.

Sony spokeswoman Sue Tanaka said: "We cannot comment on rumors or speculation."