Translation 2: we make all the content, we are the most watched netwotk in the nation, ( you don't even need cable. They do over the air in HD and sd ). Our parent company viacom is the largest media company in the country. You do it on our terms or you donr get our comtent.
Make no mistake, CBS holds the cards in this deal. Not apple.
First, Viacom doesn't own CBS anymore, and they haven't since 2006.
As for the payment. How about Apple takes about a third of their cash reserve and buys CBS? CBS has a market cap of about $22 billion right now, give that a 33% boost for takeover and it is right about $30 billion. Which is about Apple's yearly net profits. Then again, they could simply talk to Mr. Redstone about buying his controlling share and save some dollars.
CBS may have the content now, but for how much longer? The fact that they are trying to make all of the rules for the ballgame with some pretty big fish (Apple, Microsoft, Google, and Amazon), means that had better be a little respectful. I mean when one of these companies makes enough to buy your entire company in a single year they might just decide to replace you and make their own rules (i.e. content).
And for those that say it couldn't happen consider that Google, Amazon, Netflix, and Hulu are all spending some money right now on original content. Heck, Amazon has hired away some media industry bigwigs and has started their own production company already, Amazon Studios. What do you think will happen if Apple ever starts taking this seriously? Right now Apple is the network's best friend, because unlike Amazon and Google they aren't showing any interest in replacing the production companies. YET!
Couple this with Google's impressive and intelligent play of building their own fiber network, Amazon's wireless deals with the cellular carriers for the Kindle, and the suggestion coming from a few pundits that Apple might look to buy Sprint and you are looking at a segment of the market maneuvering to completely cut the production and distribution incumbents out of the game entirely.
So, I think it might behoove the incumbents to take a realistic look at what the future might hold in store for them.