Ex-CEO to Apple: Make a Big Acquisition
Is Apple (NASDAQ:AAPL) making a strategic mistake by not spending some of its cash hoard on a large company purchase? Former Apple CEO John Sculley believes Apple may be missing some important opportunities to expand the company’s influence into various developing markets by holding on to its cash reserves. Sculley was the CEO of Apple from 1983 to 1993.
“Apple’s about building great products, building and shaping markets,” noted Sculley via The Daily Star. “Carl Icahn has suggested to Tim Cook, ‘Why don’t you buy more stock back or make a bigger dividend?’ I’d rather see Apple continue to invest in building, even make big acquisitions that were strategic, as opposed to buying more stock back, or giving more dividends.”
Billionaire investor Carl Icahn has recently been pushing Cook to fund a $150 billion buyback with funds borrowed at 3 percent. However, Sculley would prefer if Apple spent its money purchasing a company like eBay (NASDAQ:EBAY).