Written by StockNews.com
Apple Inc. (Nasdaq: AAPL) has been aggressively pursuing Hollywood TV and film producers as it explores the best ways to bring new content to market. Those plans could even include a major acquisition according to the New York Post.
While at least one of the discussions between Apple and an executive was vague when it came to the tech company’s ultimate goal, the executive was left with the impression that the Cupertino, Calif., company is looking for a transformative acquisition and not just a deal to buy TV shows.
Originally, it appeared Apple was simply looking to license content for a new streaming service. Those more basic plans seem to be evolving into a much more involved tie-up, however:
[M]eetings last week — including sit-downs between Apple SVP Eddy Cue and Paramount Pictures and with Sony TV and film units — make it appear as though Apple may be aiming at a bigger deal.
An outright acquisition of a major studio could make the most sense for Apple — even one as large as Disney (DIS). The two companies have ties stretching back several years, as Disney owns Pixar, the animation studio that former Apple CEO Steve Jobs headed up in its early days. Jobs’ widow, Laurene Powell Jobs, is also a major shareholder of both companies.
As one Hollywood source told the Post, that sort of direction could indeed make the most sense for the tech giant:
A third Hollywood insider, familiar with Apple’s thinking, told The Post he didn’t know “if Apple is fully committed … I don’t see them doing this as a startup. It’s too small. It’s too hard. I see them buying something first.”
Apple Inc. shares fell $0.34 (-0.24%) in premarket trading Friday. Year-to-date, AAPL has gained 20.50%, versus a 6.59% rise in the benchmark S&P 500 index during the same period.
AAPL currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #1 of 29 stocks in the Technology – Hardware category.
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