People with knowledge of the process reported that Apple Inc. is currently in negotiation with Comcast Corp. over a deal for a streaming-television service, which would use Apples set-top boxes and provide them with the opportunity to bypass congestion on the web.
One of the people explained that the companies are not close to reaching an agreement. Other people, who are close to Comcast Corp., reported that it would probably be required to make large investments in network equipment and other technology.
According to people familiar with the talks, the negotiations between the two companies are still at an early stage and there are a lot of issues that are to be taken into consideration and agreed on. However, an eventual deal will create a new level of collaboration and unification between a technology company and a company that provides cable services.
As reported by the Wall Street Journal, over the last few years Apple became more focused on offering its users to stream live and on-demand TV programming and digital-video recordings that are being stored in the “cloud”. According to the people with knowledge of the matter, the deal with Comcast Corp. will be quite beneficial for Apple Inc. due to the fact it will provide the iPhone maker with the opportunity to follow its strategy for separating public Internet traffic and new TV services traffic.
Both Apple Inc. and Comcast Corp. refused to make any comments on the rumors.
Apple Inc. rose by 1.20% to $539.24 per share by 13:59 GMT, marking a one-year change of +16.74%. The company is valued at $475.31 billion. According to CNN Money, the 45 analysts offering 12-month price forecasts for Apple Inc. have a median target of $590.00, with a high estimate of $777.00 and a low estimate of $360.00. The median estimate represents a +10.72% increase from the previous close of $532.87.
Meanwhile, Comcast Corp. fell by 0.52% by 14:00 GMT to trade at $49.74, marking a one-year change of +20.67%. The company has a market value of $129.07 billion. According to the Financial Times, the 25 analysts offering 12 month price targets for Comcast Corp. have a median target of $60.00, with a high estimate of $68.00 and a low estimate of $47.00. The median estimate represents a 20.00% increase from the previous close of $50.00.