Apple met with Sony and Paramount about potential "transformative acquisition"

Apple met with Sony and Paramount about potential
We've known for a while that Apple wants to get into the video content business and has dipped its toe in with a couple projects -- Carpool Karaoke and Planet of the Apps -- but it looks like Apple may have an even bigger move in the works that could include a major acquisition to help propel the original video content plans. The strange thing about the report is that it appears there is some internal competition at Apple as to how to move forward with Robert Kondrk, Eddy Cue, and Jimmy Iovine all trying to make deals. 

According to a new report, Eddy Cue has a potentially "transformative acquisition" in mind for Apple and has met with Paramount Pictures and with Sony's TV and film teams. Apple was rumored to have talked with Time Warner about an acquisition before AT&T closed that deal, and it seems like Apple is once again considering buying a production studio rather than just buying TV content. However, no one is sure what to expect because of the aforementioned competition within the company. 

Not only does that competition make it unclear what Apple's plans are, it also implies that even Apple doesn't know what path it should take. That makes any potential deal less likely, but not out of the realm of possibility. Of course, there's also the issue that Apple has always been a hardware and software company, and although it has excelled at distributing media, actually being a content creator is a very different business. Acquiring the talent to make that work would be better than Apple thinking it could do it alone, but it's unclear if such a move would add to Apple's business or simply pull focus from the hardware and software businesses. 

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9 Comments

1. sgodsell

Posts: 7539; Member since: Mar 16, 2013

This is completely BS. Not in the sense that they are looking to buy a production studio, or lookin for more content. What is BS is this would only work on Apple's products. Or they would give more incentives to iOS and Apple users in general. Content and shows should be for everyone. YouTube has 44 channels or content starting up for all platforms.

3. kiko007

Posts: 7520; Member since: Feb 17, 2016

What do companies want you to do? Use their products. What does YouTube make money off of? Ads. What does Apple make money off of? Hardware. Common sense explains their rationale pretty well. Apple wants people to use more of their hardware, ya know, like EVERY OTHER HARDWARE COMPANY IN EXISTENCE..... don't be so irrational. Google doesn't make money off any of their hardware, or their own platform if we're being honest, so using YouTube to make ad money while broadcasting TV makes sense for their business model. Plus, let's be real here. We pretty much already know how either plan will turn out, utter failure, as the cable companies will LITERALLY do everything in their power to run them into the ground. I'd give Google an advantage here, as despite their lacking resources outside of ads, they have a keen insight into what people WANT to watch. Is that due to invasive yet necessary people tracking? Yep. Do most people seem to care? Nope.

4. kiko007

Posts: 7520; Member since: Feb 17, 2016

Tl;dr- Apple's not appealing to wanderers or the bottom half of the income bracket. Why? Because that's not where the money is. Google couldn't care less, as they'll make money regardless of what platform you're on. It's all about business strategy....

14. Tabby_Tiger

Posts: 305; Member since: Jan 23, 2017

I think Apple wants to appeal to pretty much anyone and everyone with their products. Income isn't much of a barrier for most who are determined. Their ads suggests their products are the best and the most user friendly. I heard they even have classes in their stores to teach the elderly how to use their products.

11. tedkord

Posts: 17456; Member since: Jun 17, 2009

But YouTube works on any Internet capable platform. Sony Pictures movies don't play only on Sony TVs. I don't know what Apple would do with this, but I'm against consolidating content makers and providers in all instances. NBC and Comcast should be broken up. Time Warner/AOL? Gone.

5. nctx77

Posts: 2540; Member since: Sep 03, 2013

Apple Music and Beats products are for everyone.

10. mixedfish

Posts: 1565; Member since: Nov 17, 2013

It's time Apple buy Sony Pictures off Sony, it's been nothing but dead weight for them.

13. Chuck007

Posts: 1412; Member since: Mar 02, 2014

Are you referring to their recent 962 mil USD Good Will loss? They're projected to return to profitability this year. What I find funny though is how adamant the division wasn't for sale a mere month ago. Now they're meeting with Apple for potential acquisition talks. Hmm..

15. mixedfish

Posts: 1565; Member since: Nov 17, 2013

It's not only the once off Good Will loss, it's all the other crap time after time of stuff ups. From the big Email hack to an inability to create sustainable franchises (Adam Sandler holiday movies isn't the answer). They may be profitable every other quarter, but the amount of time and resources invested to create every dollar is simply not worth it. Sony Records is exactly everything Pictures isn't.

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