What is common between Apple and Formula One? Both the parties invest time, resource and a truckload of money in technology. In the past, we heard rumors about a possible Apple Car or iCar,?and this was followed by the iPhone maker?s interest in acquiring Elon Musk?s Tesla. Even though these rumors bit the dust eventually, the Apple vs. Formula One?news got a new breath of life, thanks to a credible sports blogger.
What?s troubling?Formula One and how is Apple relevant in this context?
In the past few years, Formula One has seen a lot of ups and downs. To be blunt, F1 is struggling with a multitude of problems. Among other issues, losing viewership across the globe is a critical problem.
While the stronger and financially well-off F1 teams like Mercedes, Ferrari and Redbull are doing just fine, there is no way out for the umpteen weaker (or mid-level) teams that compete in the same sport. The growing rebellion against the questionable Qualifying round in F1 is also a problem. Formula One supremo Bernie Ecclestone, on the other hand, doesn?t seem to have a solution on hand.
In the meantime, we are hearing that Apple is gearing up to buy stakes in the Formula One racing. This move of Apple is believed to be a way to gain visibility and connection in the automobile industry so as to aid the alleged?Apple Car to debut smoothly.
Apple vs. Formula One: Is This News Confirmed?
Popular F1 blogger?Joe Saward is the source of this news. In his own words: ?A new round of due diligence is currently underway in preparation of a possible F1 bid from Apple.? However, he could not back the claim with a solid proof. But then, it is a well-known fact in the Formula One circuit that Ecclestone is looking for buyers.
For instance, Ecclestone acknowledged that there are potential companies interested in buying a major stake in Formula One. The figure was estimated, at that point, as approximately ?6 billion pounds (about $8.5 billion American dollars), Business Insider noted.
Not to forget, in 2015, the firm CVC, which is a holding company with 35 percent stake, was looking at the pros and cons to sell it off. The deal did not materialize. Hence, the hunt for a powerful buyer is going on, as per reports.
We know that F1 needs help, but why is Apple interested in Formula One?
Blogger Saward says the answer is three-fold:
- Apple can afford to buy just about anything with its excess net cash i.e. about $161 billion.
- Apple TV has not made a huge impact yet. Hence, a deal with Formula One might give the much-needed boost in the form of viewership via the exclusive digital content rights of the F1 Grand Prix racing series, which is watched across the globe.
- The obvious reason, as discussed above, is the alleged electric Apple Car or iCar. Apple could use some access to automobile-specific technologies from bigger F1 teams like McLaren and Ferrari. It is worth noting that the Apple car is reportedly being developed under the internal codename ?Project Titan,??Business Insider noted.
Readers should, however, note that neither Apple nor Formula One management has confirmed this Apple vs. Formula One rumor.