Check out what's new in Apple's business. This partnership will surprise you.
Apple is increasingly innovating in its field of activity. Those who knew the brand only as a seller of cell phones or technological products will be surprised by the new markets that the company is currently covering.
There is currently a rumor circulating that Apple is going to buy a very famous channel around the world. And, contrary to what some may think, the theme has nothing to do with technology, but rather with sports. Keep reading and find out more.
Will Apple buy ESPN?
After the news that Apple would be profiting from Messi's arrival in the American league, the company takes another step into the world of sports.
Daniel Ives of Wedbush, a prominent Wall Street analyst, said Apple is eyeing ESPN. He said the question is not whether Apple will buy it, but when Apple will close the deal for control of the channel.
Ives says ESPN will be Apple’s new “golden goose” in terms of sports content. A Wedbush analyst told CNBC that the acquisition “is not a question of if ESPN and Apple will team up, but when.” In other words, the deal is almost a done deal.
In any case, the analyst's opinion should be considered only as a rumor. Because there are no other sources that confirm the deal. However, Apple's acquisition of ESPN will strengthen Big Tech's sports content and bring quality content to Apple TV+.
Company bets on sports
The tech giant's bet on more sports content makes sense, as streaming subscriptions soared when Lionel Messi arrived in the American League and Apple TV+ announced exclusive content for players. Regarding the rumor that Apple would also be eyeing Disney, experts believe that the company will be more interested in ESPN's properties than Disney as a whole. The Cupertino tech giant is focused on other important strategic initiatives, and one Disney acquisition doesn't make much sense.
According to analysts, the acquisition of ESPN would cost Apple more than $1.4 billion. But the purchase is worth it for the company's streaming service. The purchase makes strategic sense. The company would have the rights to valuable sports content, prime TV rights to all major professional and college sports packages.
Additionally, it could transform the cross-selling functionality and increase the appeal of Apple TV. Finally, Ives stated that the acquisition should be announced in the next six to nine months. That said, if he is correct, the brand could announce the acquisition of ESPN as early as 2023. As mentioned above, his comments seem safe, but for now, we should consider the information Daniel Ives released as just a rumor. However, it will be interesting to see what happens to the streaming sector if the company does indeed complete its acquisition and takes another step in expanding its sports catalog.
