It seems that our friends in Cuptertino have some extra cash burning a hole in their pockets. The rumour mill is abuzz with new reports that Apple is looking at two companies for possible acquisitions.

First, there's Twitter. The microblogging site is the current media darling of the startup world and, despite not really having much in the way of a revenue stream, is said to be a hot target for everyone from Google to Facebook. Now, reports are that Apple has added its name to the negotiations with an offer of some $700m.

Then, there's Electronic Arts. The iconic game studio produces some of the hottest titles on the market but has recently fallen on hard times, posting losses of some $42m. The two companies have been working together to boost Mac gaming in recent years and now Apple is reportedly looking to take things to the next level with an outright takeover.

Both rumors seem a bit far-fetched. Apple has shown little interest in either gaming or web services beyond what can be bundled into MacOS X or the iTunes store. And even with the success of the digital content branch, Apple's bread and butter continues to be the manufacture and sale of computers and consumer electronics.

So, would either really improve any current Apple products? Better Twitter integration could be a selling point for the iPhone, but certainly not $700m worth. Right now it seems the only way Twitter makes money is as a part of a much larger network that can sell advertising or beef up the larger brand (Google buying YouTube for example.)

Then there's EA. Of course Apple wants to improve gaming, particularly on the iPhone, but would that really be worth the money and headache of taking over one of the largest game studios in the world? Perhaps it would make sense if Apple wanted to get into the console market, or turn the iTunes store into a fully-functional online software market, but that's just about the only scenario I can think of.

07 May 2009