When Tim Cook introduced the Apple Vision Pro in June, he also called on another guest to join him in the presentation: Disney CEO Bob Iger.
Iger went on to present how The Walt Disney Company's DIS services were going to be accessible immediately upon the release of Apple's APPL latest innovation in 2024, showcasing examples of how Marvel movies could be seen through the lens of the device, or even how fans could simulate a court side experience at an NBA game shown on ESPN.
A month later, Iger said that Disney would be looking for "strategic partners" for ESPN to help with the company's content and distribution. The announcement came as Disney stock continued to tank in the post-pandemic era. Disney share price was at nearly $200 per share in early 2021, but is below $85 per share today.
In the months that have followed, there have several candidates reportedly in talks with Disney that could acquire a stake in ESPN including major tech companies like Apple and Amazon as well as sports leagues like the NFL, NBA, and MLB.
ESPN's potential for a big move further amplified after for the first time in history, Disney shared ESPN's financials last month and showed that in the last nine months until July 1, ESPN had profited nearly $1.5 billion.
Just days before that, a New York Post report suggested that Disney was looking to sell about 10% stake of its sports network, but that the number is "fluid."
Related: ESPN is jumping into sports betting this month; these states can bet
There are some out there that believe that Disney could even sell controlling stake of ESPN. One of them, Wedbush Securities Managing Director Dan Ives, believes Apple has its eyes on the sports network.
"I believe that ESPN is the asset that ultimately [Apple] will buy," Ives said on Bloomberg Surveillance on Wednesday.
Ives projected that the asking price for ESPN could be around "$35 to 40 billion."
He believes Apple has seen the opportunity in the space given the early success of its exclusive deal with Major League Soccer priced at $250 million per year.
"It goes back to the MLS deal. That was I think where the light bulb went off in terms of live streaming sports. I think ESPN is a unique asset," Ives said.
Dan Ives of Wedbush expects Apple to look at M&A. "I believe ESPN is the asset that ultimately they will buy."https://t.co/ONkKRAHhOB pic.twitter.com/FOA0TMLzQO
— BSurveillance (@bsurveillance) November 8, 2023
Related: Disney's plans for ESPN are becoming more clear
Disney and Iger brushed off thoughts that that it would be selling ESPN during its Q3 investor relations call in August.
And there are several factors that should be worth watching if Apple is to acquire ESPN.
The network already has its fair share of media rights deals such as with the NBA and NFL. Apple's would essentially acquire those media rights deals with ESPN, instead of continuing its current route of taking pieces of the pie of current deals and housing them on Apple TV+.
How would that then effect the integration of Apple's streaming service? That would have to be answered in a separate deal.
Another point to watch is ESPN's foray into sports betting. The network is expected to launch ESPN Bet next week, and it's unclear if Apple would be willing to enter the sports betting world as well.
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