Time Warner, Netflix Climb on Report of Apple Interest in Mediaby
Time Warner Inc. rose in early trading Thursday after a newspaper reported that a top Apple Inc. executive raised the prospect of buying the owner of HBO, CNN and Warner Brothers last year. Netflix Inc. also gained as the discussions underline Apple’s interest in media and potentially offering its own content.
Eddy Cue, who oversees the iTunes store, Apple Music and iCloud, broached the idea of a bid at a meeting with the Olaf Olafsson, Time Warner’s head of corporate strategy, the Financial Times reported Wednesday, citing three unidentified people.
Time Warner shares jumped as much as 3.5 percent in premarket trading, and were up 1.9 percent to $74.75 at 7:27 a.m. Netflix gained 1.5 percent to $101.66
Discussions about Apple buying Time Warner didn’t go past a preliminary stage and never included Apple Chief Executive Officer Tim Cook nor his counterpart at Time Warner, Jeff Bewkes, the Financial Times said.
While it’s not clear whether interest will be revived, the paper cited bankers as saying Apple has been considering a range of potential media targets. Some bankers said Apple was more likely to go after a streaming company like Netflix, as it would make it easier for Apple to offer a wide range of content makers.