Apple is reportedly interested in buying the Warner Bros Discovery back catalog to add to Apple TV. This report comes out of Bloomberg, so there’s a good chance that this is real.
As a reminder, Warner Bros Discovery does own a number of popular IP like HBO, CNN, Warner Bros, DC, Discovery, Cartoon Network, and much more. If Apple were able to buy this catalog, that would really add a ton of value to Apple TV, which just raised prices to $12.99 per month -after initially being $4.99 when it launched in 2020.
According to those familiar with the situation, Apple has expressed interest in acquiring the company’s extensive film and TV library, as well as production assets. Other parts of the business would have to be retained or sold to other suitors. If this does happen, this could result in Apple or another streaming giant significantly bolstering its content catelog.
If Apple does buy Warner, prepare for another price increase
If this deal does happen, and Apple does buy Warner Bros Discovery, you can also expect another price increase for Apple TV. Currently, it costs $12.99 per month, and it does have some good content along with MLB, MLS and F1 coming next year, but Warner’s library will not be cheap.
Currently, Warner Bros Discovery does have a market cap of $52 billion, and with Apple not purchasing the entire company – just the library and the production assets – it would likely still cost around $20 billion or more. Which Apple does have enough cash to pay for this purchase without giving out any stock options. Apple currently has over $55 billion in cash on hand.
Of course, Apple will want to make some of that money back, and with the huge addition in content to Apple TV, I could definitely see them raising prices to at least $14.99 per month if not more. Apple might keep it low for a while to get more people on board, however.
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