Apple Inc. (NASDAQ:AAPL) is currently in potential buyout talks with Indian video production and distribution giant Eros.
The initial reports about the talks between Apple and Eros were presented by the Indian media house Economic Times which also stated that a deal could be valued at $1 billion. It is however worth noting that the Eros’ video library is probably worth less than $1 billion. The Indian video powerhouse is responsible for some of the most successful Bollywood films. Of course the talks have attracted a lot of attention on the two companies especially on Apple’s strategy for expanding its reach.
“Eros began exploring strategic options about six months ago for its Indian content library,” one of the anonymous sources told Reuters.
Apple is not the only major firm that Eros has engaged in talks with. The Indian firm has also reportedly been in similar talks such as Netflix, Inc. (NASDAQ:NFLX) and Amazon.com, Inc. (NASDAQ:AMZN). However, none of the firms have confirmed anything about their talks. The sources however said that the talks are in their early stages.
Video firms are looking to secure their presence in India
India has proved itself as one of the major markets for video content which is why content makers are looking to boost their presence in the country. India is one of the fastest developing countries and its massive population makes it quite appealing for marketers and foreign firms. Apple has been working towards boosting its presence in the country to boost its sales and revenue. It thus makes sense that Apple would also be interested in boosting its video content strategy in the country.
A deal with Apple would also solidify Eros’ competitive position as well as potentially enhancing its ability to deliver content on a global scale. Content streaming is rapidly picking up pace in India, thus presenting new opportunities for content streaming companies. So far the talks are yet to confirm whether or not a deal will materialize.
Apple stock closed the latest trading session on Monday at $158.59 after a 1.41 percent gain compared to the value of the stock during the previous close.