Disney Contemplates Selling Traditional TV Business - Will Apple Seize the Opportunity?

Disney's Bold Move: Potential Divestiture of TV Empire
In a surprising admission this July, Disney's CEO Bob Iger acknowledged the possibility of relinquishing parts of the media and entertainment giant's traditional television empire. He emphasized the company's "open and objective" approach towards the future of their TV business, noting that some aspects might not align with Disney's core identity.

Exploring Strategic Partnership and ESPN's Role
While Disney might retain ownership of ESPN, the company is actively considering forging a "potential strategic partnership" with the global sports industry leader. This partnership would span distribution, technology, marketing, and content aspects.

Apple's Inroads into Sports Streaming
Dan Ives, an analyst at Wedbush Securities, highlighted Apple's ongoing efforts to expand its Apple TV+ streaming service into the realm of sports. He proposed that an agreement with ESPN could be a viable option for Apple. Apple has already broadcasted "Friday Night Baseball" and secured an exclusive 10-year broadcasting deal with Major League Soccer.
ESPN as Apple's Golden Asset
In a report, Ives articulated that the substantial demand for live sports content remains a focal point for Apple, aiming to drive the future of its streaming business while leveraging its vast installed base of over two billion iOS devices globally. ESPN, in Ives' view, presents itself as a prime asset suitable for Apple. He anticipated that Disney's CEO Iger and the board would strategically scrutinize Disney's core assets in the upcoming months.
Enhancing Apple's Streaming Arsenal
Ives further asserted that ESPN's overall allure for Apple surpasses that of Disney, as it would elevate the tech giant's standing in the streaming competition. It would grant Apple access to "valuable" sports content, rights to major TV broadcasts of professional and collegiate sports, and facilitate cross-selling with Apple TV.
Price Considerations and Contrasts with Apple's Acquisition History
However, Ives cautioned that the acquisition price for ESPN could reach as high as $50 billion or even more, creating a stark contrast to Apple's previous acquisition history. Apple's most significant acquisition to date was in 2014 when it acquired Beats, co-founded by Andre Young (more commonly known as Dr. Dre) and Jimmy Iovine, for $3 billion. This marked a new era for Apple, enabling its success in music streaming and headphone markets.