# Apple’s Acquisition Strategy: An Examination of Eddy Cue’s Vision
A recent article from *The Information* has illuminated Apple’s tactics regarding acquisitions, especially in the field of artificial intelligence. The piece emphasizes the persistent friction between Eddy Cue, Apple’s Senior Vice President of Services, and CEO Tim Cook concerning possible significant acquisitions.
## Eddy Cue’s Support for Bold Deals
Eddy Cue is portrayed as a major supporter of bold acquisitions within Apple. His propensity to address product shortages through acquisitions has led him to endorse deals for prominent companies such as Tesla and Netflix. Nevertheless, both proposals were ultimately turned down by Cook.
### The Tesla and Netflix Proposals
The article suggests that Cue previously pushed for the acquisition of Tesla during its initial troubles, particularly during the difficult development phase of the Model 3. Elon Musk has openly stated that he approached Cook to talk about a possible acquisition, but Cook refused to engage. In contrast, there were also claims that Cook proposed the idea of Apple acquiring Tesla to Musk, who showed interest but wanted to head Apple as CEO.
Likewise, Cue’s aspiration to acquire Netflix has been a subject of speculation for several years, although no confirmed discussions have occurred between the two firms. Analysts have often argued that Netflix would be a strategic addition for Apple, particularly given the increasing significance of streaming services.
## Successful Acquisitions: The Example of Beats
In spite of challenges in chasing major acquisitions, Cue effectively supported Apple’s acquisition of Beats in 2014 for $3 billion. This transaction was crucial as it represented Apple’s entrance into the music streaming and headphone industry, despite initial doubts from some within the organization.
## Current Emphasis on AI
At present, Cue is reportedly concentrating on acquiring an AI company, with Perplexity and Mistral leading the pack. This transition reflects the rising significance of artificial intelligence in the technology arena and Apple’s ambition to stay competitive.
## The Shazam Acquisition
Another intriguing facet of Apple’s acquisition approach is the strategy employed when acquiring Shazam in 2018 for $400 million. Adrian Perica, Apple’s Vice President of Corporate Development, formulated a method to ascertain the price by calculating the advertising expenses Apple incurred through Shazam. This pragmatic method highlights Apple’s commitment to informed financial decisions over yielding to market hype.
## Conclusion
The interplay between Eddy Cue and Tim Cook showcases a complex corporate strategy landscape at Apple. While Cue’s vision for daring acquisitions has faced opposition, his successful advocacy for other deals, like Beats, highlights his impact within the company. As Apple continues to investigate potential acquisitions, particularly in AI, the lingering question is: should Apple take a more assertive approach in seeking major companies like Tesla and Netflix? The outcomes of such choices could profoundly influence Apple’s future direction in the tech sector.
