Apple Inc. (NASDAQ:AAPL) is the next target of Mr. Carl Icahn, the activist investors, as he seeks to maximise the value of his investment in the company. He is sending a letter to Apple Inc. (NASDAQ:AAPL), the contents of which will be made public soon. Brian Blair of Rosenblatt Securities shared some of his views on CNBC about what Carl Icahn could suggest to Tim Cook, Apple Inc. (NASDAQ:AAPL)’s CEO that could be a game changer for the company.
According to Blair the most obvious of these value enhancing moves involves a spinoff of Apple Inc. (NASDAQ:AAPL)’s iTunes business. Content companies have lately been on the radar of tech companies, as they are seen as a means to attract new consumers and also keep the old ones loyal.
[..] Take Jimmy Ivy, take Dr. Dre, separate this iTunes unit and use your cash to really build out a media empire, starting to maybe acquire content, you know, using the radio and the other, this beats streaming platform to create a separate but relevant business that can really help Apple Inc. (NASDAQ:AAPL) grow […],” said Blair.
Another proposition that Blair thought could be on the cards is a spinoff related to Apple Inc. (NASDAQ:AAPL)’s mobile payment platform. Either way, Blair was sure a spinoff has to be there.
“[…] If it’s not that it could be something related to payments. He [Carl Icahn] obviously was spot on with eBay spinning off the PayPal side of the business, so has some great views about unlocking shareholder value, and increasing the value of the company’s assets […],” explained Blair.
There is another avenue that the letter could be venturing into as well but Blair didn’t see it as a real possibility. It is a possible merger. There are a few candidates lined up for Apple Inc. (NASDAQ:AAPL) for that purpose in the content business too, but it is hard to say which one has Carl Icahn set his eyes for.
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