Rumors have erupted in the press that the iPhone maker Apple (NASDAQ:AAPL) is looking into acquiring either all or part of Conde Nast, the upmarket publisher of the New Yorker, Vogue and Vanity Fair, according to a report in the UK publication The Guardian.
While the debate could be passed off as no more than speculation, Conde Nast is thought to be a takeover target as it is engaged in strenuous cost-cutting efforts, put in place by the consulting firm McKinsey, which are aimed at paring down 2017 losses of more than US$100mln on revenues of about US$1bn, according to the New York Post.
Bob Sauerberg, Conde Nast’s chief executive, is vigorously denying the rumors. “We are not for sale,” he told the New York Post.
The price of a sale of Conde Nast could fall between US$1bn and US$2bn if a bidding war takes place.
The rumors coincide with the release of Apple’s quarterly earnings results Tuesday. It is thought that Apple could be interested in Conde Nast as its acquisition would allow the tech group to widen its content offerings beyond music and video. Apple’s recent acquisition of Texture, which offers access to a range of print magazines, suggests that the company is interested in supplying written content.
In pre-market trade, Apple shares were up slightly at US$166.38 ahead of its earnings announcement later today.