Apple's acquisition of American entertainment firm A24 could happen, according to a recent report.
The Cupertino giant is showing some interest in the popular TV studio. Most likely, the sale could involve a billion-dollar deal at around $3 billion.
Apple's Acquisition of A24 Could Take Place
According to Variety on Tuesday, July 13, the tech titan is on the verge of closing the deal with A24 in terms of the potential acquisition. The two companies established several collaborations for different projects, especially during the popularity of the Apple TV+ on its launch.
Apple and A24 have previously worked together in "Boys State" and "On the Rocks" films. In 2018, they also came up with a deal that would last for many years.
As per Variety, the two firms discussed the details regarding the acquisition recently. When A24 was showing up for the companies who would acquire it, Apple was one of many who expressed enthusiasm about a possible acquisition.
According to the people who know the situation, the Apple acquisition is expected to be staged at a later date.
What Makes Apple a More Applicable Candidate For Acquisition
In a report by 9to5Mac, A24 has been connected to another tech giant, Amazon through their "Showtime" deal.
However, the ties for the two companies were already finished, and maybe it's time to find another interesting merger for the project. The report mentioned that those firms that look forward to the participation of subscribers could be lured to the TV studio. So far, what we know is Apple is open to acquiring A24.
Over the past years, we saw the dominance of the Cupertino giant in the market as it completed absorbing companies, such as MGM, AT&T, and Time Warner.
Why Apple Did Not Buy Netflix
Wedbush Securities analyst, Dan Invest, shared back in February that Apple should invest more in the streaming video industry to go with the flow. The expert considered that as the "biggest strategic" mistake that the tech giant made.
Despite not purchasing the popular streaming app, Netflix, Apple should improve their services to compete with firms like Disney and Amazon in terms of the said industry.
During the time, Ives mentioned that Steve Jobs was also responsible for the strategic mistake that happened, and not just the current CEO Tim Cook.
The company has had all the opportunities and resources to acquire Netflix in the past, but what's confusing is why Apple skipped it.
Another problem that was seen in Apple was the lack of content in the Apple TV+. Compared to Netflix, which had garnered over 200 million users worldwide in February, the number of Apple TV+ users lagged behind it.
The Disney+ subscribers accounting for over 95 million subscribers still beat Apple in terms of subscriber count.
This article is owned by Tech Times
Written by Joseph Henry