Apple is in the midst of a major acquisition that could be worth billions.
The company is expected to announce a deal on Wednesday that could see Apple Music gain a larger share of the music streaming market.
The acquisition could be the largest music publishing deal in history, according to music industry sources.
The move would allow Apple to take over the major music companies’ publishing and distribution business, a major driver of the industry’s overall business.
Apple would be able to sell music to the biggest music companies and then give them the option of buying up a portion of the company’s music publishing revenue for a smaller royalty fee.
This would allow it to continue to make music for other platforms.
Apple could also sell its music rights to a licensing company and potentially pay a smaller share of royalties to those companies.
That would allow music publishers to keep a portion.
“We’re not going to be able as a publisher to take the entire music market by storm,” said Neilson Barnard, an industry analyst and partner at investment bank Goldman Sachs.
“But I think it could be huge.”
The deal could also open up a whole new space in music, where music is sold separately from streaming services.
It’s possible that this will give Apple a new opportunity to diversify its business, said Brian Wieser, an analyst with Wedbush Securities.
“It could create a new space, or maybe they’ll do something different, but it’s definitely something we’re going to watch,” he said.
Apple is expected, as usual, to announce the deal publicly in the next few days.