Twitter is considering launching a service on Apple’s (NASDAQ:AAPL) Apple TV, which would allow users to stream the content on their television. Reportedly, the company’s plans for live-streaming are not “fully formed,” which seems semi-concerning, seeing as though these streaming initiatives are what management is banking on to accelerate growth. It’s also concerning given that the season isn’t that far off.
CEO Jack Dorsey & Co. have deals in place with the Pac 12, NFL, MLB, NHL, NBA and eSports (video game competition). The thought here is that video will drive user growth and engagement, which will drive more ad dollars to the platform and ultimately, a higher stock price.
Investors are cheering the move to Apple TV, as it will – at least on paper – help boost engagement and use. Particularly for live-streaming an NFL game. Some have also speculated about a potential buyout from Apple given Twitter streaming deals and other properties (like Periscope). But given the premium needed to do so, a takeover seems unlikely given Apple’s history of purchases.
Twitter sports a market cap of roughly $14 billion. Assuming the board would even be open to a sale, a ~40% premium would put the stock at a $20 billion valuation. Apple seems unlikely to bite at that price, especially for a property that’s still struggling.
