Is the following a nightmare scenario?
Apple seems to be firing on most, if not all cylinders. The iPhone and the iPod Touch are both selling quite well, and Internet rumors are abuzz of a possible larger iPod Touch-slash-tablet, which could quite steal the UMPC/Tablet PC/MID/eReader markets from Microsoft, Intel, and Amazon.
Then there’s Microsoft. Apple’s arch nemisis. For the first time ever Microsoft has announced a decrease in quarterly revenue.
Is there blood in the water? Looks like it.
While eyes are watching what Microsoft is going to do next, I’m wondering what Apple might do. Now, I suggest, is the time to go in for the kill.
Here’s how it can be done in two easy steps:
1) Merge with Adobe.
2) Buy Yahoo.
By bringing these two companies under the Apple umbrella, Apple will have effectively done two things: solidify its position in enterprises and schools (PDF, Flash from Adobe) and enhanced its footing in the web (Yahoo search, email, Flickr).
Adobe may be the most difficult of the two to join in like this, but think how persuasive the argument could be–kind of like a behind the scenes deal on an episode of Survivor.
Yahoo, obviously would seem to be eager for the marriage, even motivating some lost talent to return. It sure would lift people’s spirits. Now, of course, Apple has dealings with Google, so there might be some overlap of issues. Apple has to keep its head on straight though and think more about where the trends are going. Google is going to be an independent company. Apple needs not just a web partner, it needs a strong web presence. Yahoo provides that–particularly in the image content space.
Can you imagine how the markets would react to a set of deals like this? Just as Microsoft’s public moves last year hurt Yahoo, the same could occur here with Microsoft receiving the brunt of the punishment.
Would this ultimately kill Microsoft? Nah. I was just saying that for dramatic purposes. What I do think, however, is that an Apple-Adobe-Yahoo merger would be a significant company to compete against–on par with Google and Microsoft. Would it make Apple the next AOL-TimeWarner? I don’t think so, but hey, I’m not that good with all that stock stuff anyway. 🙂
It would, though, give me and everyone else something to blog about. Heh.
I think it’s about time to wake up from my nightmare.