Apple has been trying to become an entertainment powerhouse in the same vein as Netflix for a while now, but it’s been having trouble securing the streaming licenses it needs from content providers. The company isn’t used to being stuck in negotiations, and it’s not used to being so reliant on other companies that it can’t release a product without their support either, which is why Apple might be looking to secure streaming rights through other means: acquisitions. The New York Post reported on Tuesday that Apple might consider making an offer to acquire Time Warner, which would not only give it control of HBO, but major stations like Cartoon Network and CNN as well. It’s important to note that this hasn’t been confirmed, but such a move would make a lot of sense for Apple.
Time Warner Inc. isn’t even on the block yet, but Apple is staying extra close to any possible movement on this front, The Post has learned. The tech giant is among a handful of companies, all possible suitors of the entertainment company, which has recently come under pressure from activists to sell itself or spin off assets, sources familiar with the situation said Tuesday. With Time Warner shares closing at $71.06 on Tuesday — well below the $85 offer from 21st Century Fox that its board rejected 18 months ago — the New York company is seen as a sitting duck among media companies because it, unlike its peers, doesn’t have a dual-class shareholder structure. In addition to Apple, AT&T, which now owns DirecTV, is also seen as a possible Time Warner suitor, as is Fox, which Bloomberg noted would still make a good partner for the Jeff Bewkes-led company. A Fox spokesperson declined to comment. Apple is eyeing Time Warner’s assets to ease the launch of a stand-alone streaming TV service, a senior tech insider suggested on Tuesday. Cupertino, Calif.-based Apple has struggled to create a skinny bundle of programming from existing content partners. A deal with Time Warner would give Apple most of what it needs: CNN news, Turner Sports and such hugely popular shows as “Game of Thrones” and “Sesame Street” from HBO — not to mention Warner Bros. movies and TV shows.
