Tag Archives: aapl

Will Buffett Stand In Verizon’s Way, Snatching Up Yahoo?

Will Warren Buffett stand in the way of  Verizon Communications ( VZ ) snatching up Web portal Yahoo ( YHOO )? That scenario looms amid reports that Berkshire Hathawa y ( BRKB ) Chairman Buffett is backing a consortium  vying for Yahoo’s Internet assets. Quicken Loans founder Dan Gilbert is said to be pursuing Yahoo, with Buffett providing financial backing. Some former Yahoo executives have been advising Gilbert’s group  on a bid, tech news website Re/Code reported. Buffett’s Berkshire Hathaway made its biggest-ever acquisition in 2015, buying Precision Castparts, a maker of aerospace components, for $37 billion. However, Buffett has not been a big investor in tech companies, with his large stake in IBM ( IBM ) a notable exception. Berkshire, however, just disclosed that it’s taken a nearly $900 million investment in Apple ( AAPL ) shares. “I’m an enormous admirer of Dan and what he has accomplished in Quicken Loans‎,” Buffett told CNBC . “Yahoo is not the type of thing I’d ever be an equity partner in. I don’t know the business and wouldn’t know how to evaluate it, but if Dan needed financing, with proper terms and protections, we would be a possible financing help.” Others in the hunt for Yahoo include big private equity firm TPG Capital and a group comprised of investment firms Bain Capital and Vista Equity Partners. Telecom and wireless services giant Verizon has been viewed as the front-runner for acquiring all or part of Yahoo. Verizon, which bought AOL in 2015 for $4.4 billion, aims to morph into a digital media company that garners more advertising revenue, as wireless data competition mounts. Yahoo recently added four new independent directors to its board under pressure by activist investor Starboard Value. While Yahoo CEO Marissa Mayer is in talks with possible buyers, a second round of bidding for Yahoo may not wind up until early June, according to various reports.

Apple Gets Lift From China Ride-Hailing Service Investment

Apple ( AAPL ) stock rose Friday on news that the iPhone maker is investing $1 billion in Chinese ride-hailing service Didi Chuxing , a rival to U.S.-based Uber Technologies. Apple shares were up 1%, above 91, in midday trading on the stock market today . On Thursday, Apple stock fell to its lowest level in nearly two years, below 90. Apple CEO Tim Cook told Reuters that the investment is strategic and will help it better understand the Chinese market. Backed by Chinese Internet giants Alibaba ( BABA ) and Tencent ( TCEHY ), Didi Chuxing is the dominant ride-hailing service in China, operating in more than 400 cities. But Didi Chuxing has been losing billions in a costly battle with Uber for market share in China, Reuters said. The Didi Chuxing investment comes as Apple reportedly is spending heavily on R&D related to automotive technologies. Observers widely believe Apple is working on an electric, self-driving car. Apple Shoring Up China Relations Apple also is trying to shore up its presence in China, where it has faced increased regulatory scrutiny. Last month, Chinese authorities shut down Apple’s online book and video stores, following the introduction of strict regulations on online publishing, especially for foreign companies. “The (Didi Chuxing) investment makes sense as it should help improve Apple’s relationship with the Chinese government amid regulatory concerns (iBooks and iTunes Movies recently blocked in China),” Angelo Zino, equity analyst at S&P Global Market Intelligence, said in a research report. “Also, we view the connected car space as a major growth opportunity for Apple and this investment could help the company with those initiatives.” The inclusion of Apple Pay within Didi vehicles is a likely outcome of the investment, Zino said. Plus, the investment is a smart use of Apple’s overseas cash stockpile, he said. Drexel Hamilton analyst Brian White on Friday reiterated his buy rating on Apple stock, with a price target of 185. “China is one of the most important markets in the world for Apple and we believe this announcement represents an attractive investment, enhances the Apple ecosystem, opens up new opportunities for Apple Pay, offers the opportunities to learn more about the Chinese consumer, hows support for the country and provides Apple with a potential customer in the future for an ‘Apple Car,’ ” White said in a report. Apple’s estimated 5% ownership stake in Didi Chuxing, which is valued at $20 billion, isn’t going to break the bank for Apple. The company reported $21.5 billion in cash and equivalents as of March 26, and another $33.8 billion in short-term securities. “While this is an investment at the riskier end of Apple’s normal appetite, it has scope for upside and Apple might just learn some interesting things and make some important friends,” Richard Windsor, an analyst at Edison Investment Research, said in a statement. “For Apple, this represents an investment of 0.6% of its net cash balance and two days of cash flow from operations. Consequently, if it all goes wrong, it will be virtually unnoticed, but given the current valuation of Uber, Apple could double or triple its money quite easily.” RELATED: Apple Falls Anew Amid iPhone 7 Worries, Chip Stocks Follow

Apple Invests $1 Billion In Uber’s China Rival Didi Chuxing

Apple ( AAPL ) will invest $1 billion in Uber’s China ride-hailing rival Didi Chuxing, backed by Chinese Internet giants Alibaba ( BABA ) and Tencent ( TCEHY ). Apple CEO Tim Cook told Reuters  the move will help it better understand the Chinese market. “We are making the investment for a number of strategic reasons, including a chance to learn more about certain segments of the China market,” he said. Didi Chuxing, formerly known as Didi Kuaidi, is the dominant ride-hailing service in China, operating in more than 400 cities. Didi Chuxing said Apple’s $1 billion stake is its largest investment ever. Uber also is expanding heavily in China, teaming up with Baidu ( BIDU ), the third member of the Baidu-Alibaba-Tencent trio of Chinese Internet giants. Didi also has alliances with U.S.-based Lyft, India’s Ola and SE Asia’s Grab. The effort also could help develop an Apple Car. Apple has never confirmed plans to build an electric vehicle with some autonomous elements, but has hired dozens of automotive engineers for “Project Titan.” Currently, Apple’s public auto efforts are focused on CarPlay, an infotainment service linked to the iPhone. Cook said: “That is what we do today in the car business, so we will have to see what the future holds,” he said. Apple shares closed 2.35% to 90.34 on the stock market today, hitting its lowest levels since June 2014. Apple also lost its crown as the most valuable company to Google parent Alphabet ( GOOGL ).