Apple considering a bid for the Formula 1 racing franchise
On Wednesday July 13th there were rumors that the technology company Apple is considering a bid for the Formula 1 racing series. The motivation is said to be access to media content and to promote it's upcoming "Apple Car", a rumored entry to the electric car market from the company.
The prominent Formula 1 blogger Joe Saward started the rumors by stating that Apple's lawyers and financial experts are already in the process of doing due-dilligence on the matter. This can be considered as a significant expression of interest into the purchase of the Formula 1 series.
There were no exact details served, but it's widely known that the F1 magnate Bernie Ecclestone is looking for a buyer for the series. In 2015 it was rumored that CVC, a holding company, which ows 35% of the franchise had already agreed on a sale at the price of some six billion Pounds.
This transaction never materialized, but according to sources close to Ecclestone the search for a buyer continues. The latest company now looking into the purchase is Apple, the technology company known for it's iPhone, iPad and Mac devices and the connected digital store platform.
This would represent a jump into the unknown for the company as it has usually preferred purchases of smaller established companies or promising companies at the start-up stage. In return for the purchase Apple would gain access to the valuable media content generated from the racing series.
Apple could distribute the content through it's digital sales channels, the App store and the iTunes store, through which the company already sells music, movies and TV-shows. In addition there is no doubt that Apple would like to be visible next to premium brands such as Ferrari and Mercedes that are represented in the market.
Another motivation behind the purchase is said to be the board seat in the motorsports governing body FIA. Through this position Apple could get additional visibility and marketing for it's upcoming entry to the electric car market through the Formula E racing series.
This is sounds like a wild rumor, but there are aspects that make it feasible. Bind this to the cash reserves of Apple and it may simply be a sensible financial investment and the other parts being mere perks.