Apple’s acquisition of ESPN would be a ‘no brainer’ – Wedbush

Wedbush analysts maintained an Outperform rating and a $230.00 price target for Apple (NASDAQ:). They raised the possibility of Apple acquiring ESPN assets from Walt Disney (NYSE:), citing the tech giant’s increasing interest in securing live sports content for its Apple TV streaming platform.

They note that Apple’s pursuit of live sports content has gained momentum, aligning with its strategy to boost subscriber numbers for Apple TV+. With over 50 million paid subscribers on the platform, the recent 10-year MLS streaming soccer deal when Lionel Messi signed with Inter Miami, significantly bolstered subscription numbers for the MLS Season Pass worldwide.

They suggest that ESPN’s assets could be a strategic fit for Apple, potentially aligning with the company’s evolving streaming ambitions.

Despite Apple’s historical avoidance of significant M&A activity, the analysts believe the shifting streaming landscape could prompt a change in approach. Acquiring ESPN, with an estimated price tag of over $50 billion, would provide Apple with valuable sports content, extensive TV rights covering major professional and college sports packages, and an enhanced cross-sell potential for Apple TV.