Wall Street Analyst Thinks Apple Acquisition Of ESPN From Disney Is A Good Idea
Image Source: CNBC
As streaming gradually increases its participation in the entertainment industry, Apple is looking to do the same. Recent news from Wall Street argues that Apple may be interested in the acquisition of the huge sports company, ESPN. Currently, ESPN is controlled solely by Disney, but the company could suffer important changes under the eye of CEO Bob Iger. It is well reported that Iger is looking into selling some of Disney’s assets to reduce costs while at the same time improving their cash flow.
The idea of Apple buying ESPN could be a really good deal for them. Apple, through its streaming platform Apple+, has gotten the rights to show Major League Baseball (MLB) and Major League Soccer (MLS) games. This has proven itself a lucrative investment because quite recently Argentinian soccer star and World Cup winner Lionel Messi joined Inter Miami, drawing not only a new surge of fans to the stadium but also to their screens. In addition to this, the recent changes in the sports market could make this a crucial move. The integration between a sports giant like ESPN and an entertainment/tech one in Apple would lead to an increase in viewers for these events. The transaction would help cement Apple not only in the streaming market - one that it has already had success with Ted Lasso - but also in live sports also, potentially broadening them to the whole world.
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One aspect has to be considered, though. While ESPN may be available for a possible deal, it is not going to be the whole thing. Disney is - at this moment - only considering letting go of some assets that are not vital to the company, like TV networks. Controlling ESPN but letting someone else operate it could be a smart move by Disney, reducing greatly its overall spending. Although this seems like the case, the close relationship between Apple’s Tim Cook and Disney’s Bob Iger is a deciding factor. These companies have had close ties since the Steve Jobs era and continued to do so. Thus, a full acquisition may happen, considering the current scenario that Apple finds itself in.
Disney’s operations under Iger have been under scrutiny for some time already. Iger is aiming towards pleasing investors with a bigger revenue and fewer expenses in general. So, letting go - even though it is partially - of non-vital assets might be the play for Disney in this downsize moment there are going through.
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Source: Deadline
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