HBO soon on Apple

HBO to partner with Apple – New Global Audience for HBOAccess

Apple and HBO are talking in reference to creating content and a streaming service that will cost consumers around $15 a month to get HBOAccess. Time Warners Inc (NYSE:TWX) owned HBO has previously flirted with a independent IPO float, which would be a certainty if it was to get such a global audience and boost to the valuation of this business unit of TWX.
Apple has had great success in assisting media outlets reaching global audiences including WSJ Live and Bloomberg and many sporting networks.
If HBO manages to strike up a deal that creates exclusive content for Apple we could see real competition to Netflix in the streaming business for the first time yet. And unlike Netflix global borders will be much easier to overcome for HBO with the Apple partnership. Overall we are a long play on TWX from here.
TWX may experience some short term stock price drops if HBO was to be enlisted and separated out but depending on the structure of the deal and the percentage of stocks retained by TWX we should be able to see market cap growth here when the deal is finalised.

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