Bankers at Goldman Sachs are pushing Apple to make its own bid, according to a report in the New York Post over the weekend. Apple has plenty of cash to make the deal. Or it could probably choose to raise the money, instead.
It’s not unheard of for big deals to get broken up by a better, more attractive offer. Apple would just have to offer Time Warner a lot more money than AT&T already has.
The bigger question is why would Apple make the move? The company has never made big acquisitions before. Its largest ever deal was a $3 billion purchase of Beats Electronics, the headphone maker and streaming music firm, in 2014.
Apple has a set way of doing things, and its Silicon Valley methods would surely clash with Time Warner’s own creative culture.
That said, for Apple, Time Warner carries the same appeal it does to AT&T: high-end content that could form the basis of a new kind of television package. Apple has essentially failed in its attempts to remake television, despite years of rumors. Apple has tried to put together a streaming TV package, but it has never been able to come to agreement with how to pay the content providers.
If Apple owned Time Warner, it would immediately have control of HBO, CNN, TNT, TBS and other channels. Those are prized assets that could form the basis of a quality package. And it would instantly add credibility to Apple’s fledgling connected TV box, the $149 Apple TV.
If that’s the thinking, though, Apple might also consider Disney, given its better crop of movies and its ABC and ESPN channels. Apple is one of the few companies that could afford Disney, given its $150 billion stock market value.
But, don’t get your hopes up. For now, Apple‘s big TV buy remains very much a Wall Street dream.
Big Picture: A big Wall Street bank is reportedly pushing for Apple to buy Time Warner, by beating AT&T’s offer. There’s one reason why it makes sense but lots more why it doesn’t.