Apple Is Sitting Over $100 Billion Cash Pile; Have No Idea What To Do

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Apple promulgated to shareholders on Thursday that the board of directors of the company is being decided what to do with massive cash of nearly $100 billion in the bank. However, the final decision of the company is yet to come. The new policy of the company—major-vote measure for the boards of directors—will take effect in one year. The company stated about its new policy in its annual meeting.The share of Apple was trading-up by $3.35 and reached to $515.39 on Thursday after the  conclusion of the meeting. The new measure requires board member to be approved by the majority of shareholders vote cast at each annual meeting—according to current bylaw, unopposed directors need not have the majority approval to retain their seats. Shareholders also applauded the company’s management and performance—the company has grown 66% of its revenue in the last fiscal year end with the September 2011 from year-over-year.

Tim said, “We’ve actually spent a lot, but we still have a lot; a lot more than we need to run the company. Apple has spent on its supply chain, retail build-out and acquiring new technologies. We will do what we believe is best for our shareholders.”

Apple’s new CEO Tim Cook believes the company has generated more money (nearly $100 billion) than it needs. And the company wants to invest the money in some constructive way. The current CEO wants to break done the cash-hoarding tradition as his predecessor did.

Do you think, where Apple should invest the money? Now, I am frankly saying what Apple should to do with such huge cash pile. The company should to do what the board of directors are discussing—to issue a dividend to shareholders—and there might be one option, the company should buy back shares.

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Besides this, Apple could buy numbers of companies with hoard of its cash such as Time Warner ($38 billion), Dreamworks ($1.6 billion), and Viacom ($29 billion). After buying these companies, Apple will still have $30 billion, after a quarter delays, the company could buy News Corp (worth $49 billion).  Apple could buy Hollywood in order to bring “a real movie experience ” into folks’ homes but in an entirely new way. Apple could bring latest and quality movies into its iTunes—there would be no program schedule, no guidelines, and users could organize everything according to their tastes. The users will have real experience of entertainment—TV schedule of their preferences.

It’s the time for the company to think consciously about the investment of hoard of cash. I think, the company’s CEO and the board of directors are well viable to take decision. But, no one knows where the company is going to invest such cash pile.

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