Apple bought its way into the streaming music market with Beats, and now it may have plans to do the same for TV by purchasing Time Warner. Apple's Eddie Cue is reportedly watching closely for an opportunity as pressure mounts for Time Warner to put itself up for sale.
Apple considers Time Warner purchase
Insider sources told the New York Post Mr. Cue, who handles entertainment content deals, is looking at the potential Time Warner purchase as a way to kick start Apple's own streaming television service that'll run through Apple TV.
If Apple does snap up Time Warner, it'll have HBO, movies and TV shows from Warner Bros., CNN, and Turner Sports under its wing—all of which would be great for its Internet streaming TV service. Apple already offers HBO on Apple TV through an app, but so far hasn't been successful at putting together the content it needs for a channel package that competes with the likes of Comcast.
Time Warner hasn't committed to stepping up onto the auction block, but pressure is mounting for the company to do something because its value for shareholders is declining. The company could sell off key assets like HBO, but slicing itself up would more likely drive its overall value down even lower.
Instead, selling off as a complete package deal makes more sense, and that's what makes a potential deal enticing for Apple. With Time Warner's properties under its control, Apple could launch its long rumored streaming TV service, and more easily draw in content from other networks.
Time Warner hasn't committed to selling, and if it does Apple won't be the only company lining up to make a bid. Fox and DirecTV owner AT&T are both potential suitors, which means an Apple purchase isn't a sure thing.
Apple isn't commenting on its streaming television plans, and Time Warner is still mum on how serious it is about a sell off. If the media company does decide to sell and Apple snaps it up, your next TV channel package could come with an Apple logo.