In its most recent (Q3 2011) financial report, Apple Inc (AAPL) put its reserves at $76.4bn. As of today (8/19/2011), Amazon.com Inc (AMZN) has market capitalization of $81.22bn. It is not at all impossible for Apple to buy Amazon. I can think of the following benefits.
First, iCloud can leverage AWS. Apple does not need to reinvent or relearn the data center management again. AWS itself is a fast-growning profitable business. With AAPL services running on it, the AWS brand will also get reinforced.
Second, Jeff Bezos can replace Steve Jobs as the CEO of AAPL. According to Gruber, Jeff Bezos is the best potential outside successors. I agree with him on this.
Third, combining AMZN’s online digital content retailer business, AAPL can dominate the market. The company will have more power in negotiating with content publishers.
What is your thoughts on the potential acquisition?