Report: Goldman Sachs trying to convince Apple to bid for Time Warner

Report: Goldman Sachs trying to convince Apple to bid for Time Warner
It's called "Dialing for Dollars." Whenever an investment bank gets shut out of a deal, its bankers start calling around hoping to find another company interested in making a play for the target company. In this case, reports published this weekend suggest that Goldman Sachs is trying to get Apple to make a bid for Time Warner. The latter, as you probably know, has agreed to be purchased by AT&T for $85.4 billion.

A Time Warner bid would be a large acquisition for Apple to swallow. The largest purchase that the tech titan ever made was the $3 billion buyout of Beats in May, 2014. But Apple has expressed interest in Time Warner in the past, and comments made by CEO Tim Cook during the company's earnings call on Wednesday make it appear as though Apple is open to strategic deals of any size.

Will Bugs Bunny end up holding an Apple instead of his trusty carrot? While Apple can use the content that a Time Warner acquisition would give it, the tech titan's MO is to make a number of smaller pickups instead of blowing its wad on one huge deal. Still, investment banking firms not involved in AT&T's offer would sell their own grandmother if it meant getting a fee. So we wouldn't be surprised to hear that Apple, or one of the other large U.S. tech firms, has hired a major Wall Street bank to investigate the possibility of buying Time Warner and stealing the company under AT&T's nose.

source: NYPost



1. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Apple would not buy a media giant because it would interfere with profit margins. Apple would lose more money in the transition vs what it would gain. If Apple bought TW, it would mean, paying for more ads, paying rich people do do the ads, then they have to deal with cable subscriptions, means a bigger payrole to fill, means waiting for money from movies and similar. If Apple bought TW for $86B, the transition and downsizing would cost them 1/4th of that. TW pulled in $28B in 2015. It cost them nearly $7B to run the company. They have almost $64B in money draining assets. I am talking about things that cost a lot to run, considering how much money comes from it. But they could offer nice deals. Like Time Warner packages that include a phone or tablet for free. Any movies they make, they can just uses iPads an iPhone's in the movies to keep them popular. They would also have a slew of content to provide for their streaming services and they have a wealth of movies and TV to offers. Apple TV subscription could included access to TW movies stash. The question is, could Apple handle being a tech titan and a media titan at the same time? I say no. If they became a media titan, then the tech would fall to the wayside, because the media side would make all of the money for the company, so they wouldn't even need the tech side. Consider the relationships. Time Warner still has Warners Bros pictures, they have a Internet service (RoadRunner) Which I think they sold most to BrightHouse Networks, Cable services (HBO/Cinemax), they have a relationship with Six Flags as they use Warner characters, affiliations with NCAA, NBA and PGA too. We are talking a lot of cash juggling. I don't think Tim Cook could handle watching Apple and watching TW too. But I don't think ATT should be allowed to buy them either.

2. Finalflash

Posts: 4063; Member since: Jul 23, 2013

They're not going to do it cause it's a bloated over price POS. That's all that needs to be said.

3. sukrith2194 unregistered

I do not want Conan to be in the hands of Apple!

4. bucky

Posts: 3795; Member since: Sep 30, 2009

Google and apple want internet tv, not cable. I don't blame them. I can't wait until I can properly choose what I want to subscribe to.

11. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Apple wants the contents and to sell its subscription but are unwilling to pay a decent price to get it. Primary reason why Apple TV does not have their own streaming channel. Buying TimeWarner is like bringing the whole cow home. Apple is too smart to get into this overblown s**tty deal.

5. MartyK

Posts: 1043; Member since: Apr 11, 2012

TechieXP, Very valid points. This would be a great play for Alphabet company to make. Since their bread and butter is advertisement. They could set TW entertainment as part of their umbrella contents and raise revenue for companies who use it by a small fee while increasing their ads profits. They can also add several of the media to their VR lineup.

7. lyndon420

Posts: 6897; Member since: Jul 11, 2012

I'm ok with Alphabet buying TW...just not apple.

9. Dr.Phil

Posts: 2488; Member since: Feb 14, 2011

The deal is already under scrutiny from regulators because of AT&T being such a large company, I can't imagine Alphabet even attempting to get over that hurdle. Alphabet has it's own wireless carrier, phone hardware company, internet search engine, operating systems, internet provider, Youtube (which is a huge media company in of itself), venture capital fund, social media, etc. Apple just has it's own hardware company plus the software it creates. The only reason Apple wants TimeWarner is because they want Apple TV to offer their own subscription plan for programming and to be able to leverage with other companies to get other channels on board. It's a way easier pill to swallow than Alphabet buying them and that's why there are no rumors of Alphabet even attempting that.

6. lyndon420

Posts: 6897; Member since: Jul 11, 2012

Apple shouldn't be allowed to buy it for anything less than 300 billion in cash. No wait...scratch that. I don't want apple to have any say or control over any of my comic book superheroes whatsoever - hopefully someone blocks the sale to apple.

8. fyahking

Posts: 1146; Member since: Jan 28, 2015

Apple is too cheap to spend that much

10. Zeeya

Posts: 331; Member since: Mar 17, 2013

Buy BlackBerry instead....

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