If recent reports are to be believed, Formula One could soon find itself a new buyer, which surprisingly just might be Apple Inc. It is believed that the tech giant is interested in purchasing the sport and will help fuel the company's automotive plans, which is an open secret of sorts. F1 blogger Joe Saward has suggested that the Cupertino based tech giant is analysing the proposition of purchasing one of the most expensive sports in the world. The report also emerges at a time when F1 Boss Bernie Ecclestone has made it clear that the racing series is up for sale at the right price.
It is a known fact that the Apple has been developing an all-electric car that will come with several autonomous driving capabilities, while production is said to commence by 2019. Acquiring Formula One fits rather well into the iPhone maker's plans to take on automotive giants. Currently, F1 is evaluated at $7.9 billion and for the 35 per cent stake owned by current owner holding company CVC Capital Partners. This is also the second such news of F1 being sold after American investment company RSE Ventures in collaboration with Qatar Sports Investments was said to be in the bidding race for acquiring the sport.
Apple is a far-sighted company and spending around $7.9 billion of its $161 billion cash reserve makes for a viable option without making a massive dent in its treasury. At the outset, acquiring F1 will act as the perfect promotional tool for the company's existing line of products with a large audience of the sport already existing users of the company's tech. Moreover, Apple will get a chance to build stronger relationships with established car manufacturers. More importantly, the company can get the larger audience associating the brand with cars, which is what it is looking for. Clearly, why play to win when you can own the sport!
In addition, Apple will also have an influence over F1's governing body FIA and could make in-roads to Formula E as well. Then there is the Apple TV, which could see a significant hike in viewership thanks to the acquisition as the company will own streaming rights to the sport. While the news does seem to have to some juice, it still needs to be seen as to when and how do the plans materialize.Source: Joesaward.wordpress.com