As one of the world’s largest companies and home to what is arguably the most successful consumer electrical product of all time, Apple which has forged a name as a technology giant, comfortably sits on a cash stockpile of $233bn. So, what does a company in this position do to continue on their path to technology and media world dominance? Recent rumours have surfaced that Apple is seeking to expand their empire through the acquisition of original content, breaking specifically into the television market.
Shares in both Time Warner and Netflix surged at the end of May following speculation that linked both companies to Apple. However, Time Warner’s market cap is around $58bn while Netflix has been valued at $43bn, and such expensive deals are not typical of Apple. Historically Apple has paid between $50m and $200m for its acquisitions, excluding its 2014 $3bn purchase of Dr. Dre’s Beats, therefore a deal with Time Warner and/or Netflix would be a significant step change for the company.
However, as Apple clearly can afford the acquisition of one, if not both, of these companies, the possibility of a deal is not implausible, and here is why:
As the rumours surrounding Apple’s potential deals continue to circulate, it is clear that the colossus of technology is aiming to diversify and extend its market reach amid a time of significant change within the industry. The move would be Apple’s biggest deal-making to date, but it is likely that we will have to wait longer before any of these rumours are confirmed or denied.
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