Apple flirting with Time Warner to acquire media content

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    Market factuality cannot be denied for Apple Inc. (NASDAQ: AAPL) that had never initiated to acquire Time Warner Inc. (NYSE: TWX) However, a recent uncertain approach depicts iPhone manufacturer to be serious looking ahead for a position in media content.

    INSIGHT: Apple has tried to break into television for years, however has faced every time. Talks with TV networks like CBS Corp. and 21st Century Fox Inc. to license their content for a live television service fell apart in year 2015.

    In accord with some anonymous sources, last year in-charge of iTunes and Apple Music, Eddy Cue brought up a notion of a possible deal with TWX corporate strategy head Olaf Olafsson in a meeting.

    Although the two never initiated any deal, APP looks onto consider *Time Warner.

    (*owner of HBO and the Warner Brothers studio)

    THURSDAY: Financial Times reported the two companies to have taken a discourse lead in this case – at which surprisingly executives did not show up.

    But why would AAPL inclined towards its position in media content when Tom Cook isn’t heading towards bad days? Who knows he might as iPhone sales show bearish imprints globally.

    Chief Executive Officer Tim Cook has emphasized the expansion of non-hardware businesses such as music, the App Store and iCloud as a way of stabilizing revenue.

    Following its up-and-coming revenue assets like streaming music service and Apple TV set-top box, California-based company probably launch a film and television streaming service to rival Amazon.com Inc.’s Prime and Netflix Inc.

    “For Time Warner — and essentially HBO — to become Apple’s original content production assets in some form or another, that would very much help it catch up with the likes of Netflix and Amazon in terms of having potentially quality proprietary content on its platform.” Atlantic Securities’ analyst, James Cordwell

    Owning a content company could provide AAPL with some leverage to negotiate with the other networks for licensing rights.

    Cordwell also believe that Apple is aiming too high as TWX – comprising a market capitalization of more than $55 billion – won’t be an easy purchase with its small stash of domestic funds.

    “If there was an international production house with content popular in the U.S., I’d think that would be an ideal fit for Apple.” – he added

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    I cover technology, utilities and biotechnology for Markets Morning, and I help out occasionally with other industry sectors. I’ve written about investment and personal finance topics for more than 20 years from a lowly copywriter to editor-in-chief, so I’ve done a little bit of everything. For what it’s worth, I have a BA from Duke University and an MBA from Rollins College. I’m married with one daughter, and that’s worth more than everything else put together.

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