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Craig,
T would like approval to engage LiquidSky in an initial acquisition discussion.
LiquidSky is a cloud gaming service founded by lan McLoughlin in 2014. Ina ramp up to their
official launch in March 2017, they quietly amassed over a million registered users with no
marketing. The company has 25 employees, most of whom are engineers. While their focus
has been gaming, they claim their technology supports a wider range of “PC in the cloud” use
cases. Multiple people from Apple have met with LiquidSky, most recently where we saw an
impressive demo of their macOS client running Blizzard's Overwatch on a MacBook Air and a
similar demo on an Android phone, with surprising fidelity. LiquidSky submitted a working
version of their client to the iS App Store but it was rejected by App Review due to it being a
“sub app store” since they allow games purchased elsewhere to run on their platform. The
company has raised S10m, and Samsung is a strategic investor. A ballpark price for LiquidSky
is in the 40-50M range.
At some point, in the not so distant future, if not now, it's my belief running applications in the
cloud will be an attractive solution for some key business cases.
« Running AppleTV in the cloud, providing full AppleTV experience on Smart TVs and sticks
« Enabling lower cost education products
+ AAA games in the cloud. Games not available on iOS or MacOS (this represents 2/3 of all
games)
+ Mac apps tht require more compute horsepower than the client system (¢.g., Pro apps on
MacBook Air)
+ Windows apps that don’t currently run on macOS (some pro apps, high end games)
T would like to acquire LiquidSky as a starting point for a key part of Apple's cloud
applications solution.
‘The plan as I see it would be:
+ Acquire LiquidSky
« Prioritize some Key business cases to solve (maybe the above)
+ Build out business case demonstrations to gain productization approval
+ Ultimately this team would mostly move into other orgs, cloud be the most obvious.
Can we proceed with initial acquisition discussions?
John

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