Tim Cook, the CEO of Apple has informed CNBC that Apple had been acquiring one company every 2-3 weeks on an average.
Tim Cook was speaking with Becky Quick of CNBC when he revealed that Apple had bought around 25 companies in the past six months. The companies were small-sized with Apple priority being acquisition of intellectual property and talent; hence they weren’t publicly disclosed. The interview took place during the annual meeting for shareholders at Berkshire Hathaway.
Apple Inc. has $225 billion in cash reserves, which is among the highest worldwide. This current level of aggression in expansion is allowed for by its massive cash reserve. Infusions over $350 billion for the US economy have been pledged by proper taxation and expansion policies to be followed by Apple in the US.
Ever since the $1 billion Apple Headquarters was built in Texas, Apple has been looking for new avenues to spend its cash. Cook said that Apple was currently purchasing companies that fit its goals and strategy planning decisions. Apple was purchasing one company every three weeks on average.
Apple had previously acquired Texture, which is a digital subscription service-based magazine. It served as the precursor to Apple+ News that provides access to various publications in exchange for a fixed fee.
Apple does not make any major acquisitions, although it does acquire a lot of companies. The most famous one was that of Beats, a headphone company. Apple has transformed it into a part of its own Apple Music service and continued sales of its headphones category.
Over the past few years, Apple has considered high value acquisitions like Time Warner, as per a WSJ report in 2016. There have also been growing calls to start acquiring large chunks of shares in companies like live streaming company Netflix and Tesla Motors.