According to the New York Post, Goldman Sachs Group Inc (NYSE:GS) is said to be pressuring Apple Inc. (NASDAQ:AAPL) to bid for Time Warner Inc (NYSE:TWX). Although AT&T Inc. (NYSE:T) previously agreed to buy Time Warner, many traders don’t think the deal is guaranteed to go through due to regulatory approval hurdles. Some analysts estimate the probability of approval as being just 50%. Given that Apple has the cash to outbid AT&T and seeing as there may be less regulatory hurdles, Apple could be in a better position to unlock value if it were to successfully bid for the company. Apple certainly could use Time Warner’s content for its internet TV initiatives.
“We are open to acquisitions of any size that are of strategic value, where we can deliver better products to our customers and innovate more. And so we look at a whole variety of companies, and based on that, we choose whether to move forward or not. But we’re definitely open, and we definitely look,” Apple CEO Tim Cook also said during the company’s earnings call.
By goading Apple to bid, Goldman Sachs would be in prime position to make some fees off the potential deal. Goldman Sachs is not currently involved in an advisory capacity on the AT&T/Time Warner Inc. deal.
According to our database of 749 funds which filed 13Fs for the June reporting period, 116 were long $10.68 billion worth of Apple Inc. (NASDAQ:AAPL) shares on June 30, which accounted for 2.00% of the float, while 68 funds were long $4.45 billion in Goldman Sachs Group Inc (NYSE:GS) shares, which amounted to 7.20% of that stock’s float.