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6 Things that Would Happen if Apple and Amazon Merged
07/20/2016 9:12 am EST
Apple’s market sentiment has soured as growth remains a concern as the global economy shows signs of slowing. Amazon though, has become Wall Street’s darling as fundamentals continue to improve and as it reports improving profitability metrics. Here, Michael Berger, Associate Editor of MoneyShow.com discusses six potential outcomes if these companies merged.
- Amazon (AMZN) CEO Jeff Bezos would replace Tim Cook as CEO. Cook would remain a core piece of Apple’s (AAPL) management team but his role would be refined. Warren Buffett, the Oracle of Omaha, has stated that he is in awe of Bezos’ genius, which says a lot!
- Billions worth of synergies would be recognized as the merger would combine Amazon Web Services, the world’s largest public cloud provider, with the largest company in the world that is also the largest seller of smartphones.
- Apple would once again be considered a growth company as the combined company would be levered to Amazon’s growth cycle
- The combined company would be the largest company in the world. The combined value would be slightly less than the combined value of the second and third largest companies in the world.
- A combined company would create a major threat for other cloud service providers like Microsoft (MSFT) and Google (GOOG)
- Over time, the merger would increase the speed at which the companies innovate and bring new products to market. Each company possesses valuable intellectual property, which when combined, could unlock value and be utilized in a suite of new products
By Michael Berger, President of Technical420
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