Electric vehicles
One potential avenue it could explore is buying an electric car company. Apple abandoned the pursuit of building an electric vehicle (EV) after shutting down its Project Titan in 2024 due to cost overruns and a lack of progress. The company had poured a reported $10 billion into the project to develop a fully autonomous vehicle. Pulling the plug on the project has led analysts to speculate it might instead turn its attention to buying a company that has already developed an EV.
The company has lots of options. It could buy an EV startup like Rivian (RIVN -8.41%) or Lucid (LCID +2.67%). Like most start-ups, these companies are burning through cash as they develop and launch new products, so they could benefit from becoming part of a more deep-pocketed company like Apple.
Another option is to go big by acquiring the industry leader, Tesla (TSLA +2.45%). While Apple couldn't buy the automaker and technology company with cash, given Tesla's mammoth market cap of nearly $1.4 trillion, it could certainly afford the deal by using its stock. However, it might not be easy to convince the company's shareholders or its leader, Elon Musk, to sell.
Streaming content and VR
Given that Apple abandoned its pursuit of developing a car, it might shift its focus to growing one of its existing product or service lines. If it wants to make a needle-moving deal, it has lots of other options. For example, it could acquire a content company like Disney (DIS -0.56%) or Paramount Global (NASDAQ:PARA).
Disney would be an interesting fit. It has a growing streaming empire (Disney+, Hulu, and ESPN+) that Apple could add to its services business, which also includes streaming service Apple TV+. Apple wants to get more into live sports, which makes ESPN a potential strong strategic fit. It could combine all those services into a cable-like package. Another way Disney could fit within Apple is to create more immersive experiences by leveraging its virtual reality (VR) expertise. The company launched its Vision Pro VR headset in 2024. It could add immersive content from Disney to that platform, like Star Wars and Avatar-type virtual worlds. Meanwhile, Apple could eventually use its VR technology to create immersive experiences at Disney parks and resorts.
Paramount Global would offer Apple another way to grow its services business. The company owns several premier content brands, including CBS and Nickelodeon. It also has a streaming service (Paramount+) and expertise in live sports.
Financial technology
Another potential acquisition option is to expand its payment services capabilities by purchasing a company like PayPal (PYPL +0.60%). The financial technology company owns its namesake payment platform and Venmo. It also owns the Honey shopping extension. Acquiring PayPal would significantly expand Apple's payment services business.
Fitness
Apple has also gotten into the fitness sector through wearable technology (Apple Watch) and its Apple Fitness+ service. It could expand both categories by acquiring a fitness product and service company like Peloton (PTON -1.65%). An acquisition of Peloton would give Apple a large installed user base (3 million subscribers) to grow its health platform. It could potentially offer integrated health and fitness products and services with the Apple Watch, Vision Pro, and Peloton.
