Warner Bros. Discovery is officially up for sale, with a growing list of potential buyers. Reports from Bloomberg indicate that Apple, Amazon, Netflix, and Comcast have all shown interest. For Apple, acquiring WBD’s prestigious catalog, especially HBO, could significantly boost its Apple TV+ service.
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Warner Bros. Discovery on the Market, Tech Titans on Alert
Media giant Warner Bros. Discovery is actively seeking an exit strategy, exploring bids for either some or all of its assets. CEO David Zaslav, who reportedly has personal financial incentives tied to a sale, appears to be increasing the stakes. He has informed his executives of interest from major players like Apple, Amazon, and Netflix, primarily for its extensive film and series catalog.
Paramount, which recently merged with Skydance, made a bold initial offer of $24 per share, but WBD found it too low. The process is accelerating, with WBD preparing to have potential buyers sign non-disclosure agreements to access financial data.
A Purchase That Could Shake Up Apple’s Strategy
The reported interest from Apple is surprising. The Cupertino-based company has historically favored internal creation (‘build’) over external acquisitions (‘buy’), a philosophy recently reiterated by Eddy Cue. Apple’s biggest acquisition to date remains Beats Electronics in 2013, for $3 billion. Acquiring WBD, even partially, would be valued in the tens of billions and would involve massive and complex consolidation, which is far from Apple’s usual approach.
So far, Apple TV+ has positioned itself as a service offering exclusively original content. Adding a prestigious catalog, however high-quality it may be, would represent a major strategic shift.
Eyeing the Crown Jewels: HBO
If Apple is truly at the negotiating table, it’s likely not to acquire declining cable networks. The target would be the crown jewels
: Warner’s intellectual property and, most importantly, the HBO catalog. Apple had previously attempted to acquire HBO alone a decade ago, but AT&T (the former owner) insisted on selling the entire bundle, including cable channels Apple wasn’t interested in.
Today, WBD’s more precarious financial situation might make them more open to selling off parts, which could finally allow Apple to acquire the coveted catalog.
What’s the Word?
Cautious optimism is advised. It’s entirely possible that David Zaslav is merely using Apple’s name to drive up bids from Paramount or Amazon. It’s a common tactic. But if the interest is genuine, it could be a game-changer for Apple TV+. The service has struggled to justify its subscription cost compared to the extensive catalogs of Netflix or Prime Video.
Acquiring HBO would instantly transform Apple TV+ into a major contender, but it would also mark the end of its ‘100% original’ strategy. It’s a dilemma: should Apple stay true to its ‘premium’ philosophy or succumb to the allure of volume to finally step up its game? The price tag for the HBO catalog will likely be crucial.