Apple (NASDAQ:AAPL) Lining Up With McLaren for F1 Expansion

Apple (NASDAQ:AAPL) Lining Up With McLaren for F1 Expansion

Apple (NASDAQ:AAPL) Lining Up With McLaren for F1 Expansion

$AAPL, $TSLA, $LMCA

Apple Inc. (NASDAQ: AAPL) mulling acquiring UK Superscar maker and Formula 1 racing team McLaren in the wake of Liberty Media’ plans to expand F1’s iconic brand.

Analysts see the acquisition in the $2-B area. It makes sense for Apple with its huge offshore cash pile and the brand recognition that is attached to Formula 1 worldwide, plus the company then gets in on McLaren Engineering’s advanced auto technology.

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Apple’s interest in the Supercar maker Keys on its technology, engineering skill, and patent portfolio.

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Added to that Apple would acquire a proven Team of employees who know how to build design, build, sell and race cars at Tier 1 level. It is worth noting that McLaren is an employee owned company, that is Team.

McLaren is a sporting operation and as such loses money, but it does not burn money as Tesla Motors (NASDAQ:TSLA) does. Last year’s operating loss at Tesla totaled more than $716-M compared with a loss of about $29.3-M at McLaren.

Apple would also acquire a Formula 1 racing team, giving it the marketing massive exposure that comes with an F1 team.

Liberty Media (NASDAQ:LMCA) founder-Chairman John Malone just agreed to pay about $8-B in cash and assumed debt for the iconic racing circuit.

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The McLaren Honda Team’s Y 2015 F1 budget totaled about $520-M, including about $161-M from sponsors, about $242-M partners, and about $116-M from TV and media rights.

The McLaren F1 team is partnered by Honda, who provide the power units. The Team is the 2nd most successful after Ferrari in terms of race wins and titles but has not won a Grand Prix since Y 2012.

An Apple-McLaren tie up would certainly make it interesting, they might just be thinking about is for its advertising and brand enhancement value add.

McLaren issued a statement that it is not in touch with Apple.

Symbol Last Trade Date Change Open High Low Volume
NASDAQ:AAPL 113.55 21 September 2016 -0.02 113.85 113.99 112.44 35,994,700
HeffX-LTN Analysis for AAPL: Overall Short Intermediate Long
Bullish (0.40) Bullish (0.44) Bullish (0.38) Bullish (0.39)

Stay tuned…

 

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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