BREAKING NEWS Microsoft and Facebook to Buy Apple Inc.
Shares in Microsoft Corporation (MSFT) stormed to a 52 week high yesterday on rumors that a potential joint hostile takeover of Apple Inc. (AAPL) with Facebook Inc. (FB) was looking increasingly likely in the next few months. The shocking news took MSFT shares to $41.50 in intraday trading and closed out at $40.99 once the news was fully digested. An analyst who didn't want to be named stated that it was an obvious move by the two tech giants as they look to close out the gap on their rivals. With over 46m shares traded yesterday MSFT whose market cap of $340.25Bn haven't yet released the finer details of the deal but a leaked email did hint at an offer in the region of a Trillion dollars. When pushed Satya Nadella confirmed that the deal was still being worked through with Facebook but that they hoped to be able to give the markets more information in the coming days.
All the while Facebook's founder Mark Zuckerburg, sitting on $3.3Bn from the sale of his remaining stock options posted that he was excited at the concept of the deal and that a partnership of Microsoft and FB was an obvious one and Apple an obvious target. Commenting he said "It was only a matter of time before we looked to a merger such as this, with Apple being the #1 device maker and Microsoft the #1 software company, it makes sense!". Message boards have been flooded with possible scenarios when the 3 companies merge. Talks of an FB operating system on iPhones and iPads abound it is clear the techies out there are excited about the news. One blogger was adamant that the deal should go through as he believed that "Merging the 3 greatest tech companies the world has seen is the right thing to do! Well all need Macs running Windows'esc operating systems fully integrated to the Facebook network.....Welcome to the FUTURE!" was the most commented blog on the tech website. Shares of FB closed just off their 52wk high of $61.52 at $60.24.
Whilst the news spurned Microsoft and Facebook shareholders, Apple who are close to their 52wk high of $540.81 were quiet on the news, as were investors. Hardly any volume went through yesterday after the takeover was leaked late in the afternoon. The $478.77bn capped company has had its fair share of detractors lately amidst concerns over their new product pipeline. Investors are always happy to see a new iPhone or iPad release but in reality it has been a long time since Apple have released a really new product. Speaking in a last minute conference call both Peter Oppenheimer and Tim Cook expressed their shock at the news and promised the Apple faithful that this was not the end of Apples iconic brand. Reacting to the rumors Tim Cook confirmed that it would be difficult for the board to reject an offer purportedly in the Trillion dollar range as it would in effect be doubling the value of the company. Surprisingly the news had an adverse effect on the stock and it closed down at $536.74 with almost half the usual volume being traded. Oppenheimer sounded shaky has he answered some questions regarding the company's future. At one point he was asked what Steve Jobs would say and he replied that he would probably be "turning in his grave as we speak, or readying his spaceship to return from Mars".
The news is slowly spreading across the web and is attracting plenty of attention.
Markets in the States are expected to react strongly to the news of a potentially megalithic merger and the NASDAQ is going to look to follow up on the gains of yesterday after showing a strong gain of 1.04% mainly off the back of this tech news.
Only time will tell whether this merger will get the go ahead however when you look at the details it is hard to see it not happening.
Market Data as of close 31st March.
Nikkei 225 at 14,812.51 (-0.11%) Hang Seng at 22,341.19 (+0.87%)
SSE Comp at 2,033.31 (-0.41%)
FTSE 100 Closed at 6,598.35 (-0.25%) Dax Closed at 9,555.89 (-0.32%)
CAC 40 Closed at 4,391.94 (-0.44%)
BEL 20 Closed at 3,129.94 (+0.27%)
IBEX Closed at 10,340.50 (+0.71%)
Zurich SMI Closed at 8,534.81 (+0.96%)
Dow Jones Closed at 16,457.66 (+0.82%)
NASDAQ Closed at 4,198.99 (+1.04%)
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DISCLAIMER The views, opinions, findings, and conclusions or recommendations expressed on this service are those of the author(s) and do not necessarily reflect the views of the Hexagon Capital Management. All market data within this release is for your general information and enjoys indicative status only. Hexagon Capital Management does not accept any responsibility for its accuracy or for any use to which it may be put. All share prices and market indexes delayed at least 15 minutes. 52 week high and low values are calculated from close price data.