1. Michael Essany's Avatar


    As MMi has reported with abundance in recent weeks, Apple is said to be closing in on a whopper of an acquisition - the largest in company history.

    If suspicions and sources are correct, Apple will spend north of $3 billion to acquire Beats. From the company's streaming music service to its well-known line of headphones, Beats is a big company. And Apple's plans for it may be just as gargantuan.

    But we may not know what those plans are for some time. In fact, we may not even know if Apple has, indeed, acquired Beats. How so? It's all about SEC rules. And Apple may use them to their advantage in keeping supposed plans under wraps for as long as possible.

    Thanks to the magnitude of Apple as a company and financial powerhouse, Apple may not be compelled to put forward a press release and file an 8-K with the SEC to herald a done deal with Beats. For most other companies, a $3.2 billion acquisition would certainly mandate such. But in terms of Apple's massive cash reserves and market cap, a $3.2 billion purchase is actually small potatoes. And so it may be viewed as such in the eyes of SEC rules.

    "And so you can bet that you will continue to see acquisitions and some of which we'll try to keep quiet and some of which seems to be impossible to keep quiet," Apple CEO Tim Cook said during last month's quarterly earnings call. But despite conventional wisdom to the contrary, the company's purchase of Beats may be able to remain "quiet" for much longer than anyone initially thought possible.

    In fact - for all we know - the deal to acquire Beats may already be sealed.

    Source: Apple Insider
    2014-05-21 10:50 PM
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