Apple CEO Tim Cook, SVP Eddy Cue attempted Imagine Entertainment buy -- report [u]
Apple could have bolstered its video content strategy significantly with an acquisition of a production company, a report claims, with discussions allegedly involving Apple CEO Tim Cook and SVP Eddy Cue said to have potentially led to a purchase of Imagine Entertainment.
The talks between Apple and the Hollywood production company, owned by Ron Howard and Brian Grazer, were allegedly serious enough that they warranted the attention of the high-level Apple CEOs, according to several sources of the Financial Times "briefed on the discussions." It is unknown how long the negotiations had been going on for or why they broke down, with the report simply stating "the discussions fizzled out," but the talks are said to have taken place "recently."
The subject of the talks centered mostly around how Apple could use Imagine's content with its services, with the possibility of a "first look" distribution deal of Imagine movies and TV shows. A potential investment in the production studio was also raised, as well as an outright acquisition of the company.
The timing of the talks is apt, as Imagine recently ended a long-term production and distribution deal with Universal Pictures. A new production deal with Apple or another online service could have been a new direction for Imagine, which is known for the films "Apollo 13" and "The Da Vinci Code" as well as a stable of television shows, putting its content in front of audiences through new alternate distribution methods.
An acquisition of Imagine Entertainment would have given Apple a considerable boost to its original content strategy. The iPhone producer has recently shown off "Planet of the Apps" and "Carpool Karaoke", two shows it will be bringing to Apple Music subscribers soon, with previous comments expressing interest in "content creation and ownership" strongly suggesting more internally-produced content will follow.
Acquiring a major content producer, such as Imagine, is entirely possible for Apple to accomplish, with Cook previously suggesting a purchase is more to do with the "strategic value" than the size of the target. Apple is also a prolific buyer, purchasing between 15 and 20 companies per year for the last four years, and is unlikely to stop anytime soon.
Apple was also rumored to be interested in acquiring Time Warner, another major content producer, before AT&T's $80 billion deal last year, but it is thought the talks stayed only at a preliminary level.
Update: Imagine co-chairman Michael Rosenberg later told Variety, "The story is not accurate and Imagine has no further comment."
The talks between Apple and the Hollywood production company, owned by Ron Howard and Brian Grazer, were allegedly serious enough that they warranted the attention of the high-level Apple CEOs, according to several sources of the Financial Times "briefed on the discussions." It is unknown how long the negotiations had been going on for or why they broke down, with the report simply stating "the discussions fizzled out," but the talks are said to have taken place "recently."
The subject of the talks centered mostly around how Apple could use Imagine's content with its services, with the possibility of a "first look" distribution deal of Imagine movies and TV shows. A potential investment in the production studio was also raised, as well as an outright acquisition of the company.
The timing of the talks is apt, as Imagine recently ended a long-term production and distribution deal with Universal Pictures. A new production deal with Apple or another online service could have been a new direction for Imagine, which is known for the films "Apollo 13" and "The Da Vinci Code" as well as a stable of television shows, putting its content in front of audiences through new alternate distribution methods.
An acquisition of Imagine Entertainment would have given Apple a considerable boost to its original content strategy. The iPhone producer has recently shown off "Planet of the Apps" and "Carpool Karaoke", two shows it will be bringing to Apple Music subscribers soon, with previous comments expressing interest in "content creation and ownership" strongly suggesting more internally-produced content will follow.
Acquiring a major content producer, such as Imagine, is entirely possible for Apple to accomplish, with Cook previously suggesting a purchase is more to do with the "strategic value" than the size of the target. Apple is also a prolific buyer, purchasing between 15 and 20 companies per year for the last four years, and is unlikely to stop anytime soon.
Apple was also rumored to be interested in acquiring Time Warner, another major content producer, before AT&T's $80 billion deal last year, but it is thought the talks stayed only at a preliminary level.
Update: Imagine co-chairman Michael Rosenberg later told Variety, "The story is not accurate and Imagine has no further comment."
Comments
I understand Apple's quest for original content but they already own some IP in an area that is begging for good/trustworthy content...Apple News should be on the AppleTV with real news. Investigative even as it grows. This is the gaping content hole that cable has. No good news outlet. They all seem to be shills for one of the political parties. Or incompetent. Or both.
Perhaps an interesting idea for original programming on the Apple News Channel would be a daily update of all the Fake News out there coupled with some good host and co-host driven banter. While a lot of the Fake News out there is harmless, some can be quite damaging.
A potential way to turn the Fake News industry on it's head would be to aggregate it all into a show and laugh at it a little.
Get this to an original programming guru to get their take.
The investment bankers are desperate to dip their hands into Apple's cash pile, so they're trying to sow the notion that Apple can't close an acquisition deal without them. (Ignoring the fact they closed 10 deals last year)
First, Amazon's business is not streaming content. Quite the contrary, they use it as a "loss leader" to get folks to subscribe to Prime. Amazon's business is building the world's largest distribution platforms and then charging others to use it, e.g, Amazon Web Services (cloud storage) and Amazon, which makes its real money on charging customers for the privilege of buying from this distribution platform (Prime memberships) and merchants who want to sell their products on vast distribution network of warehouses, web site, delivery service, etc. This is why Amazon is losing hundreds of millions on the Echo, but they are willing to pay that price to extend their platform ever further into your home and lives.
Secondly, music streaming has become largely a commoditized product, meaning it is widely available and interchangeable so consumers can get it from so many companies at pretty much the same price. The only way to survive in this game, and this is why Spotify has ever growing losses, is either to cut your price or offer other differentiators. Spotify has little to differentiate itself and why it's not far fetched to predict its collapse in the next two or three years. Amazon has lots to offer and can lose money to get subscribers. Apple Music has had impressive growth, but to continue to grow and stave off Google and Amazon, Apple will keep expanding/differentiating Apple Music to attract subscribers to the point they will likely soon change it's name. The primary way for Apple to "decommoditize" Apple Music in the near future is clearly video content
Ronnie Howard is money in the bank, even Andy knew that.
Does he mean it's not accurate that Apple tried to acquire them or that it's not accurate that the talks ended???????
I think he means the whole story is yet another example of fake news. I think part of the problem is that sites fail to give retractions the same prominence they give the original fake content.
Case in point: AI is running the same fake story, with the same fake headline, but with a tiny [u] after it.
"The plan is simple, yet brilliant," said Septimus Sog, credited as the original architect of the buyout. "Now that Wall Street has seen us spend $100 billion on underpants, my portfolio … I mean our profits will shoot through the roof."
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"I don't care, and neither does Wall Street."
"Oh. Then wouldn't you say that this plan is a complete waste of—"
"Would you like to feel my portfolio?"
"What?"
"My portfolio. Would you like to touch it?"
"Er … no … thank you."
"I've had it bound in calfskin. Go on, just feel it. It's so so soft…"
"No, that's quite alright."
"Just run your finger down the spine."
"No, I don't want to."
"TOUCH MY PORTFOLIO, GODDAM IT!"
"… Okay."
"There ya go. Feel how soft that is?"
"Yes you're right. It's very soft."
"And smooth."
"Yes, it's very smooth."
"I think Mr Portfolio likes you."
"Right, I'm going to leave now."
I made that up. It didn't really happen.
DO NOT REPORT IT!