Roger Fingas
Regardless of whether or not AT&T's proposed acquisition goes through, Apple isn't interested in buying Time Warner, a report reaffirmed on Wednesday.
Apple hasn't submitted a bid, though in theory the situation could change, sources told CNBC. In late October, AT&T announced a deal to buy Time Warner worth over $85 billion — there has already been public and political opposition to such an enormous merger, however, which could result it in the deal being blocked, and possible openings for other companies.
Past reports have said that Apple raised the prospect of buying Time Warner in talks several months ago, but that it never went beyond preliminary stages or involved the companies' CEOs. Apple has allegedly been monitoring AT&T's moves, but possibly because of how a Time Warner deal would affect content Apple can sell or stream.
Time Warner is a massive media conglomerate on its own, owning networks like HBO, TBS, and CNN, studios like Warner Bros., and by extension DC Comics. For Apple controlling this would give it a major edge in content, particularly if it can finally launch its rumored streaming TV service.
At the same time, Apple is unlikely to invest in businesses it has no experience with, and their own entanglements such as contracts with cable and satellite providers.
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11 Comments
This is so stupid. All the gossip around it came from the NY Post. They were the ones to originally report that Apple was interested. Why would anyone trust the NY Post re: Apple?
Maybe Exxon could buy Time Warner.
To help them get out of the oil business.
/s
AT&T lost several billion dollars on their attempted purchase of T-Mobile. They are unlikely to succeed with this buyout. Federal regulators are almost certainly going to block the AT&T-TW merger -- consumers would lose out with reduced competition and higher prices. I have no idea where AT&T would get the funding for such a merger.
Apple needs to stay away from this, even though they have access to the cash to do it.
"For Apple controlling this would give it a major edge in content" How so? Wouldn't apple be required to license time warner content to everyone else, first in order to keep revenue from collapsing at time warner and second, to avoid any government interference in the deal? Would be so much cheaper and so much less risk to just license the stuff at a tiny fraction of the cost of time warner.
Makes sense to me -- I see no value to apple in buying time warner.