Although AAPL has $145 Billion in CASH, it is still going ahead with its $17 Billion bond issue (STRANGE!).
The only reasonable explanation is that AAPL intends to ACQUIRE a company like YHOO but it does not want to bring any of its overseas CASH to the states for TAX reasons.
In order to acquire YHOO, AAPL will have to pay a premium of about 50%, or about $36/share, which will make the ACQUISITION price approximately $40 Billion.
Posters on this board have used several sources to report that AAPL and YHOO ARE TALKING.
The deal is not CAST IN STONE yet but the PROBABILITY of AAPL ACQUIRING YHOO is VERY HIGH.
Very few acquisitions have been that predictable.
As for the reason, here is a plausible one. AAPL will leverage YHOO's patent wealth against GOOG's Motorola's patents in order to obtain cross licensing.
Also, AAPL may be planning a YHOO-based internet-access device (mini-tablet?) and acquiring YHOO would prevent future competition.
Sentiment: Strong Buy
Microsoft offered $44 Billion. No way Yahoo would sell for less than that, and it would probably be closer to $50 billion which will be almost $50 per share.
$50B is clearly better than $40B but the current market cap is only $27B.
Why would apple buy Yahoo? They have access to anything Yahoo has without spending $40 billion. Yahoo would be glad to provide access to all of their apps and content to Apple whenever they want.
Now if Yahoo begins to show growth, that would be a different story. But I don't think it will happen. Yahoo will probably grow and get too expensive to be acquired.