Apple stock (APPL) closed Monday at $26.00, down 74 cents from Friday's close and $1.49 below the 52-week high established last week during heavy trading.

It's not clear why investors were crazy for Apple, but it probably had something to do with this article in USA Today and bullish comments from Merrill Lynch analyst Steve Milunovich. Oh, and the rumor that Sony would like to buy Apple.

Long-time Apple watchers have been down this road before, and it's still a bad idea -- for both companies.

The most obvious problem is the likely clash of personalities and corporate cultures. In this recent interview, Sony Chairman and CEO Nobuyuki Idei revealed that Sony met with Apple CEO Steve Jobs "several times" in 2003 "to try to work out a mutual strategy."

But you know Steve, he has his own agenda. [Laughs.] Although he is a genius, he doesn't share everything with you. This is a difficult person to work with if you are a big company. We started working with them, but it is a nightmare.

Unfortunately for Sony, Steve Jobs is Apple Computer in many ways. Unless Sony plans dismantle Apple, any takeover without Jobs would be a huge mistake.

There are also major philosophical differences between the two companies. Sony's President Kunitake Ando says television "is about to be reborn as the centre of broadband entertainment." Steve Jobs says "We think basically you watch television to turn your brain off, and you work on your computer when you want to turn your brain on." Apple sees the computer as the "digital hub" of the future; Sony sees the same role for the TV. If Sony bought Apple, which strategy do you think would dominate?

Another big problem is Sony's library of music and movies. The success of the iTunes Music Store has been based, in part, on Apple's ability to make deals with all the major music labels (and independents). A Sony takeover would undermine Apple's role as Switzerland in the music download market. Why give that up?

Another alliance?
It seems unlikely that Sony will actually try to acquire Apple, but there might be another reason for this rumor. Perhaps the companies have been discussing a deal to create Sony-branded iPods -- a deal similar to the HP alliance announced in January.

Of course, for that to happen, Sony would have to overcome its ambivalence about digital media. Last February, Frank Rose wrote this about the civil war inside Sony:

Sony Music wants to entertain you. Sony Electronics wants to equip you. The problem is that when it comes to digital media, their interests are diametrically opposed.

Back in December, Sir. Howard Stringer, the Chairman and CEO of Sony America seemed to close the door on any deal with Apple with this dismissive quote:

"So we are also rivals, and trying to get together would frankly be a waste of time!"

It's possible that Sony and Apple might make an iPod deal -- Stringer's comments were made before the HP announcement, after all -- but it seems unlikely that any other Sony/Apple deal is in the works.

The good news? This clears the way for another round of Disney rumors!