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REPORT: Apple explored buying Time Warner (AAPL)
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Apple explored the idea of making a bid to buy Time Warner, according to a new report from the Financial Times, as the company looks to make a significant push into the content business.
The Cupertino, California-based technology giant's senior vice president of software and services, Eddy Cue, apparently suggested the idea at a meeting at the end of last year with Time Warner's head of corporate strategy, Olaf Olafsson.
The FT bases its report on three anonymous people "briefed" on the subject. Apple did not immediately respond to a request for comment.
The acquisition would have given Apple access to a $60 billion multimedia content empire, including CNN, HBO, and Warner Bros.
It doesn't sound as if the proposal got very far: The discussions were apparently only ever at a "preliminary stage," and the companies' CEOs did not get involved. And Cue suggested it at a meeting between the two companies to discuss other matters.
But it nonetheless illustrates that Apple is at least thinking about significantly ramping up its commitment to content to accompany its apps and hardware products.
Apple has historically distinguished itself through the sophistication of its consumer hardware and accompanying bundled software. But sales of the iPhone — its chief revenue driver — are slowing, forcing the company to look elsewhere to maintain growth. One key area is subscription services, which further tie users into the ecosystem.
Last year Apple launched one such service, Apple Music, a subscription-supported music-streaming app. One source told the FT that Apple was willing to spend "several hundred million dollars a year" on content — so Apple Music is most likely just the start.
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