Goldman Sachs Negotiating Departure from Apple Alliance – WSJ
The Wall Street Journal reports that Goldman Sachs Group Inc. is contemplating ending its partnership with Apple Inc., which played a significant role in elevating the iPhone maker’s presence in the finance industry.
The bank is negotiating with American Express Co. to take over Apple’s credit card and other services jointly offered by the companies, the newspaper cited unidentified people familiar with the situation. According to the newspaper, Apple is aware of the negotiations, which have been going on for months. The technology company would have to agree to the transfer.
Apple’s investment in financial offerings – with the help of Goldman Sachs – is part of a broader effort to generate more revenue from services. The technology giant got about 20 percent of its sales from that category last year, compared to less than 10 percent a decade ago.
Apple and Goldman Sachs recently introduced a long-promised high-yield savings account. However, Apple has laid the groundwork to rely less on partners for its financial services.
Goldman Sachs declined to comment, while Apple did not immediately respond to a request for comment.
Goldman Sachs has also discussed moving its card partnership with General Motors Co to American Express or another issuer, the Journal reported. Still, the deal with American Express isn’t immediate or certain.
Shares of American Express rose 1.1% in after-hours trading, while shares of Goldman Sachs and Apple were little changed.
