May Fantasy Merger of The Month: Red Camera

Each month, we take a look at a fantasy merger for Apple. Sometimes they're silly, sometimes they make perfect sense. This month, a lot of other people have decided to help Apple spend part of their $29 billion cash pile, suggesting Twitter (Apple's too smart for that) or Electronic Arts (why take on the risk?) as possible merger targets.

Well, for our May fantasy merger, we're looking at a small (relatively cheap) company that could bring some interesting rewards. RED. If you're not familiar, RED is in the business of creating insanely great professional motion picture camera solutions, at a fraction of the cost of solutions from large companies like Canon and Sony.

What's in it for Apple? What RED seems to lack is an interest, or capability to massively scale production. Apple could take the heart of the RED system, the Mysterium chip, and place in all kinds of fascinating new consumer devices. There might even be a place for HD video from the iPhone, in time. Additionally, Apple already works with RED to ensure a seamless workflow of RED's digital file format within Final Cut Pro.

The nonlinear editing space, and video equipment in general has been stale the last few years, with most of the focus on implementing video in digital still cameras. Apple could re-ignite innovation in the sector, and re-commit themselves to creative video and film professionals in the process. It would be a bargain, and might represent the sanest fantasy merger we've proposed yet.

Five Reasons Apple Should Buy Sprint

Each month we take a look at Apple fantasy mergers: Mergers intended to be funny, or sometimes serious, but almost always unlikely to happen. Today though, it's a merger/acquisition that would actually make a lot of sense: Sprint. Sprint? Here's Five reasons why this makes sense:

1. Apple would control the whole "widget." What does Apple like above all else? Control over how their products are marketed and viewed. What better way to do that with the iPhone and future devices than to own the network too. The cell phone service provider space could use the same kind of shakeup the iPhone brought to the hardware manufacturers.

2. It's a bargain. Relative to the other networks, Sprint would represent a decent buy. And while their coverage might be lacking in current generations, the 4G space looks like it could be a different story.

3. Revenue, revenue, revenue. Sure, the $300 subsidy from AT&T on each phone is nice, but how about the net revenue from every U.S. customer over the course of their contract? It remains to be seen how becoming a U.S. provider could affect relationships with carriers in other parts of the world.

4. A rising tide lifts all ships. Imagine the new opportunities across Apple's products, from MobileMe to MacBooks if Apple could integrate wireless service into more devices, and use a networked streamlined for data rather than voice.

5. Make AT&T call your bluff. Admittedly, this one doesn't require buying Sprint, but merely talking about it. If Apple let it be known that they weren't afraid to go into the cell provider business themselves, maybe AT&T would make more attractive concessions not just for Apple, but also iPhone customers. Things like last week's contract wording "mistake" could be a thing of the past.

January Fantasy Apple Merger: Blockbuster

(Fantasy Merger is a monthly feature looking at what could happen if Apple decided to merge with other companies. We have no inside knowledge that any mergers are imminent. And as you'll see, most are quite far-fetched anyhow...)

Back in the November edition of Fantasy Merger, I told you all about the pros and cons of Apple merging with Netflix. So this month, let's consider Netflix's bitter rival, Blockbuster.

First, all of the pros (and cons) of the Netflix post are true for Blockbuster as well:

PROS
Established monthly subscription base
Elimination of disc rentals, Accelerated growth of digital downloads

CONS:
Apple doesn't want to send anyone a disc. Ever.
Do the models really fit?

Of course the added question mark with Blockbuster is its brick and mortar stores. Thousands of locations around the country. Could Apple transform the stores into a sort of Apple outlet, maybe focusing more on iPods and iPhones than computers. And ponder this for a moment: All of those storefronts could make a great infrastructure for a competing cell phone provider. With Sprint possibly on the ropes, there could be a great opportunity for Apple to enter the game the second their contract is up with AT&T. (Maybe Sprint will be back for the Feb. Fantasy Merger...)

Still, as with most Fantasy Merger entries, This one is really unlikely.

November Apple Fantasy Merger of the Month: Netflix

(Each month we weigh the pros and cons of a particular potential merger for Apple. Please note the "fantasy" part of this speculation: Many times the mergers mentioned couldn't or wouldn't be realistically possible. But put all that aside and enjoy this month's edition of Fantasy Merger.)

Earlier this month Netflix brought its movie streaming service to the Mac, with the help of Microsoft's Silverlight Technology. This service allows mac(and pc)users to instantly stream thousands of movies, making Netflix more of a direct competitor to Apple's iTunes than in the past. But that alone doesn't make Netflix the subject of this month's fantasy merger. With Netflix, Apple would gain an instant subscriber base. Rather than trying to build a base on top of their current rental and purchase options, Apple would have a sandbox in which to experiment with the subscriber model.

Apple could also vastly increase it's movie library overnight. Movie studios have made thousands of movies available via Netflix's streaming service that are not available on iTunes (at least not for rental).

Of course, it would also mean the quick demise of the physical dvd portion of the Netflix business. Apple would move quickly to get Netflix users to switch to digital distribution, while selling off the customer base who couldn't or didn't want to switch, to someone like Blockbuster.

What do you think? Should Apple pickup Netflix, for what amounts to a few coins in their cash-laden sofa?

August Apple Fantasy Merger: iRobot

(Each month we weigh the pros and cons of a particular potential merger for Apple. Please note the "fantasy" part of this speculation: Many times the mergers mentioned couldn't or wouldn't be realistically possible. But put all that aside and enjoy this month's edition of Fantasy Merger.)

We've tackled some of the biggest potential Apple fantasy mergers in previous months, including Adobe, Google, Comcast, and Nintendo.

This month we're thinking somewhat smaller: iRobot. Clearly, Apple is the leader in digital downloads, and now with the iPhone and it's apps, you can start controlling your life from your phone: iTunes remote, VNC into other computers, email, etc. But what about the physical world around you? What if, beyond supporting third party software, Apple got into the home automation business? Or more specifically, the home automation hardware business? Yes, the Jetsons future we were all promised, would finally be here. iRobot has done the hard work of designing and marketing the most successful home "robot" to date, the Roomba. Additionally, they've expanded to other consumer models for gutter cleaning and pool cleaning. If these technologies will ever truly take off (which is arguable) it will take the marketing sizzle of an established, stylish, company. Enter Apple. Using wifi networks, Apple could coordinate home automation for TVs, kitchen appliances, heating, cooling and more. And yes, it would seem like this merger would be far from Apple's core values. At the same time, if home automation does finally catch on, doesn't one company, offering a total end-to-end solution, and already known for its ease of use, stand the best chance of making it a reality?