Business
business
Rani Molla
8/14/24

Apple, trying to diversify revenue, creates product no one asked for

No one asked for an expensive “thin robotic arm to move around a large screen” in their living room, but Apple is going ahead with it anyway, according to Bloomberg. The push into robotics is part of the iPhone maker’s effort to diversify its revenue. It’ll be helmed by the executive who led the company’s electric car effort — another alternative revenue source Apple canned earlier this year. It hopes to debut the product in 2026 or 2027, at a price point of $1,000.

Even Apple isn’t convinced that people will want what essentially seems to be a self-rotating, voice-controlled iPad. “Apple’s marketing group was concerned that consumers wouldn’t be willing to pay for such a product,” Bloomberg wrote.

Bloomberg previously reported that Apple has a “secret facility that resembles the inside of a house” to test out future devices. Perhaps this device made more sense there.

Even Apple isn’t convinced that people will want what essentially seems to be a self-rotating, voice-controlled iPad. “Apple’s marketing group was concerned that consumers wouldn’t be willing to pay for such a product,” Bloomberg wrote.

Bloomberg previously reported that Apple has a “secret facility that resembles the inside of a house” to test out future devices. Perhaps this device made more sense there.

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Paramount Skydance reportedly preparing an Ellison-backed Warner Bros. Discovery takeover bid, sending shares soaring

Paramount Skydance is preparing a majority-cash bid for Warner Bros. Discovery, The Wall Street Journal reported, sending shares of both companies surging. The Journal’s sources say the deal is backed by the Ellison family, led by David Ellison.

WBD shares were up 30% on the report, while Paramount Skydance jumped 8%.

The offer would cover WBD’s entire business — cable networks, movie studios, the whole enchilada. That comes after WBD announced plans last year to split into two divisions: one for streaming & studios, the other for its traditional cable/TV assets. A recent Wells Fargo note gave WBD a price target hike, primarily because the analysts viewed it as a prime takeover candidate.

If the deal goes through, it would bring together HBO, CNN, DC Studios, and Warner Bros.’ film library with Paramount+, Nickelodeon, and MTV, all under one umbrella.

The offer would cover WBD’s entire business — cable networks, movie studios, the whole enchilada. That comes after WBD announced plans last year to split into two divisions: one for streaming & studios, the other for its traditional cable/TV assets. A recent Wells Fargo note gave WBD a price target hike, primarily because the analysts viewed it as a prime takeover candidate.

If the deal goes through, it would bring together HBO, CNN, DC Studios, and Warner Bros.’ film library with Paramount+, Nickelodeon, and MTV, all under one umbrella.

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Fox and News Corp slide as investors digest $3.3 billion Murdoch succession settlement

Fox and News Corp shares dropped on Tuesday after Rupert Murdoch’s heirs agreed to a $3.3 billion settlement to resolve a long-running succession drama.

Under the deal, Prudence, Elisabeth, and James Murdoch will each receive about $1.1 billion, paid for in part by Fox selling 16.9 million Class B voting shares and News Corp selling 14.2 million shares. The stock sales will raise roughly $1.37 billion on behalf of the three heirs.

The new trust for Lachlan Murdoch will now control about 36.2% of Fox’s Class B shares and roughly 33.1% of News Corp’s stock, granting him uncontested voting authority over both companies for the next 25 years. Originally, the Murdoch trust was designed to hand over voting control of Fox and News Corp to Prudence, Elisabeth, Lachlan, and James after his death.

Investors are weighing the trade-off. Clear leadership under Lachlan may resolve conflict internally, but the share dilution, executed at a roughly 4.5% discount, means long-term investors now hold slightly less clout than before.

Both companies’ stocks were trading close to all-time highs prior to the announcement.

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