As far as the future of tech giants like Apple Inc. (NASDAQ:AAPL) is concerned, the direction seems to be pretty clear according to Kara Swisher, co-executive editor of Re/code. On CNBC she revealed that she is almost certain that all the cash in the piggy banks of these companies is going to be spent on acquiring content based companies.
Swisher said that according to her contacts, who are interested in how Apple Inc. (NASDAQ:AAPL)’s business model is going to evolve in the next few years, acquiring The Walt Disney Company (NYSE:DIS) seems like an almost natural choice. Even If it’s not Disney, the hunt for a content based company is certainly on the cards.
“[…] I had dinner last night with someone who I think is very smart and they were talking about Apple Inc. (NASDAQ:AAPL) buying Disney The Walt Disney Company (NYSE:DIS) or Apple buying content companies. I think that you are going to see that eventually. Google Inc (NASDAQ:GOOGL) buying a content company that could be interesting because, and look at Soft bank looking at Dreamworks, you know marrying the devices to the content is a really interesting trend going forward […],” said Swisher.
A very natural question for any investor is what lies in this content based companies for them to be such a hot target for tech companies like Apple Inc. (NASDAQ:AAPL). The primary reason is customer loyalty and the ability to attract more people into their ecosystem and their products.
All this is besides the extremely precious data that Apple Inc. (NASDAQ:AAPL) will be able to collect form its customers and subscribers. This could prove vital in developing precious advertisement tools, and of course additional revenue streams from advertisement side of the business.
In this race for content based companies, time is of the essence. Whichever company acts faster and is able to ink a deal with the best content based company out in the market, will reap significant benefits from the deal in future. Hence, the clock is ticking on Apple Inc. (NASDAQ:AAPL).
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