According to well-known rumormonger Rocco Pendola of TheStreet, Twitter Inc (NYSE:TWTR) is likely to be Apple’s next acquisition target. Pendola bases his speculation on the fact that Apple’s recent deal for Beats Electronics “changes everything”. He argues that the Beats deal “puts Apple Inc. (NASDAQ:AAPL) in the pole position to dominate every single aspect of the digital music landscape, not the least of which is data and all it can spawn.”
Apple was “savior” for Beats Electronic
Pendola also points out that Apple Inc. (NASDAQ:AAPL) in a very real sense acted as a “savior” for Beats, given that the relatively small company was highly unlikely to be able to burn the cash and absorb the losses necessary to establish a mega music subscription service. Apple, on the other hand, can easily lay out the necessary billions to get a large music subscription service going with hardly a ripple on the balance sheet.
Twitter next domino to fall?
Apple Inc. (NASDAQ:AAPL) acquiring Twitter Inc (NYSE:TWTR) just makes sense, argues Pendola. “Apple could — and probably should — do something similar for Twitter.” He points out Apple could again come in as a white knight and scoop up an innovative social media platform “before CEO Dick Costolo and the pressures of being a public company drive into the ground.”
Although he doesn’t have any inside sources to back up his speculation about Apple buying Twitter Inc (NYSE:TWTR), Pendola does make a reasonably convincing case for the idea. It is clear that Apple is in transformative mode right now, and as all of the new development on display at today’s WWDC make clear, Apple Inc. (NASDAQ:AAPL) is moving forward on many fronts. Don’t be surprised if Twitter is the iPhone titan’s next target.
