Apple is said to be in negotiations to acquire German manufacturer of HDTVs, Loewe AG, with the final decision expected as early as the end of this week.
Apple is said to be in negotiations to acquire German manufacturer of HDTVs, Loewe AG. As per reports in AppleInsider, the final decision could be announced as early as the end of this week.
Apple is reportedly offering 87.3 million euros (112 million dollars) for the company, which is nearly 50 percent premium over the firm's valuation of 58.79 million euros (76 million dollars), based on Friday's closing price.
Apple has long been rumoured to be working on its own TV set. Acquiring an existing player could be one way for Apple to build the expertise required to design and manufacture televisions, and Loewe would be a perfect fit. Loewe, like Apple, is seen as a manufacturer of premium products, focusing on elegant design backed by a strong supply-chain.
Loewe's portfolio of products includes sound-systems and smart televisions that integrate beautifully with Apple technologies. One of its newest products is AirSpeaker, a beautifully-designed, sound box that integrate's with Apple's AirPlay technology. The company has also developed and released iPhone and iPad apps that integrate with its products.
Given the synergies between the two companies, it is easy to see why Apple would find the company attractive. The valuation shouldn't be a problem either. Hundred million dollars, give or take, is loose change for Apple given its healthy cash position.
Loewe, on its part, has tried to downplay any potential takeover, with a company spokesperson saying there is 'absolutely nothing' to the claims.
Shares of Loewe AG jumped 24 percent in early Monday trade on market talk of the potential offer from Apple.