April 21, 1995: Rumors swirl that Canon (sure, the Japanese digicam firm!) would possibly take over Apple in both a partial or full acquisition.
Hypothesis grows a couple of doable deal after Apple reveals its newest earnings, which present large enchancment however nonetheless fall far in need of Wall Road’s expectations.
Canon shopping for Apple?!?
Though Canon denied curiosity, and neither Canon nor Apple ever publicly confirmed any such negotiations, the rumor mill in April 1995 buzzed concerning the prospects. With AAPL shares buying and selling at $35, Canon reportedly supplied a not-insignificant $54.50 a share. That represented a complete valuation of $6.5 billion for Apple. (To place that in perspective, at present Apple is nearer to a $2.6 trillion market cap.)
Canon would possibly seem to be an unlikely candidate to purchase Apple, however the truth is the corporate was a fairly main tech participant within the Nineteen Eighties and ’90s. After Macintosh challenge founder Jef Raskin left Apple, Canon scooped him up and gave him the chance to develop his imaginative and prescient of the Macintosh. Launched in 1987 because the Canon Cat, the pc didn’t take off — regardless of essential acclaim and respectable gross sales.
Not lengthy after, in June 1989, Canon paid $100 million for 16.67% of Steve Jobs’ post-Apple firm, NeXT. Canon later supplied one other $10 million to $20 million in 1991, and prolonged a $55 million credit score line in 1992.
Canon additionally manufactured the NeXT Laptop’s optical disc drive, and Jobs finally bought NeXT’s {hardware} enterprise to Canon in 1993. (Apple finally acquired NeXT, deliver Jobs again to Cupertino within the course of.)
Apple acquisition rumors made sense
Due to this fact, the concept that Canon would possibly purchase Apple wasn’t completely unreasonable. The rumors got here at a time when Apple CEO Mike Spindler was desperately attempting to dump the corporate.
Different potential (severe) purchasers included IBM and the now-defunct Solar Microsystems. Compaq, Hewlett-Packard, Sony, Philips and Toshiba additionally obtained approached, though these discussions by no means went far.
In the end, the Apple-Canon deal (clearly) by no means occurred. In April 1995, Apple was having fun with a quick respite from the “dangerous previous days” of the Nineties. Because of elevated demand for Macs within the second quarter of 1995, Apple earned $73 million. That was greater than 4 occasions the $17 million it made the identical quarter a 12 months earlier.
Earlier than too lengthy, Spindler was out at Apple. New CEO Gil Amelio, who harbored a special technique for turning the corporate round, changed him. Then, by the tip of 1996, Steve Jobs returned. Amelio obtained ousted, and Apple was primed for its comeback. Issues might have been very, very completely different, although.
Any longtime tech followers need to speculate on the place a Canon-run Apple could be at present? Depart your feedback under.
