BusinessWeek is reporting that Apple’s recent purchase of Quattro Wireless and Lala Media may be part of a new broader strategy by Apple to use their large cash reserves to gobble more companies with specific technologies Apple is interested in. The report goes on to note that Apple hired Goldman Sachs investment banker Adrian Perica […]
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Apple Becoming More Aggressive with Acquisitions?

logo-apple-gray.pngBusinessWeek is reporting that Apple’s recent purchase of Quattro Wireless and Lala Media may be part of a new broader strategy by Apple to use their large cash reserves to gobble more companies with specific technologies Apple is interested in.

The report goes on to note that Apple hired Goldman Sachs investment banker Adrian Perica last year to help close these deals. Before Perica, it was believed that Apple had a “super ad hoc” process by which Apple department heads were responsible for building the case for acquisition.

Jobs has long preferred for his company to develop technology in-house and avoid the risks that come with integrating other companies into Apple’s unique, finely tuned culture. In the past, there was no organized M&A effort, say three former executives at the company. Instead, business chiefs were supposed to keep an eye out for deals and go to Jobs if they thought there was a beneficial one to be made. After getting Jobs’ O.K., the champion of the idea would pull together a team to make an overture, negotiate terms, and work through the administrative details. “It was super ad hoc,” says one of the former executives.

Apple’s new stance on these matters seem to stem from Google’s acquisition of AdMob, an advertising company that Apple was interested in acquiring, but was snatched by Google first. In turn, Apple quickly turned around and grabbed Lala Media before Google could.

The report goes on to say that Apple will likely continue to purchase only smaller companies with very targeted technologies that Apple might later utilize. Apple traditionally builds technology in-house and only purchased companies for their technologies and talent as needed.

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