Shulou(Shulou.com)11/24 Report--

CTOnews.com, June 8-Apple unveiled its latest virtual reality headline Vision Pro at the Global developer Conference (WWDC) on Monday, sparking a heated debate about its future strategy in the industry. Needham analyst Laura Martin reiterated her view in a report released Tuesday that Apple should buy entertainment giant Disney.

"Apple needs to acquire Disney to promote the popularity of Vision Pro headlines," Martin wrote in the report. Disney CEO Bob Iger praised Apple's Vision Pro headlines on stage, showing a strong strategic fit between Disney content and Apple's wearable technology. "

"the price of the Vision Pro head display is $3500, and we expect its market acceptance to be relatively low. But if Apple buys Disney, its story creators can create unique content for Apple's Vision Pro head Show and attract consumers to buy it." Analysts added.

On Monday, Iger announced a new partnership between the two companies involving Vision Pro at Apple's event. Users will be able to watch movies and TV shows from Disney + through the head display, as well as enjoy a more immersive sports viewing experience. As soon as Edgar spoke, Disney's shares rose 4%. It has also sparked long-standing rumors of a possible merger between the two companies.

Martin explained that exclusive content will be the key to driving new head show sales, citing how Steve Jobs ensured the popularity of iPod by getting music companies to sell him singles. "if there is no content that people want to buy, no one will buy iPod." "it's not a popular product, so you have to have content to make people want to use it," she said. "

Martin stressed that for Apple, the benefit of acquiring Disney is not only its intellectual property rights, but also its story creators. "you can't force Disney content producers to do anything unless you own them," she said. " She also rejects the idea that partnerships alone are enough because Disney will want to protect its profits and maximize revenue. "Apple should own Disney content, and it's more valuable for Apple to have these story creators and tell stories specifically for devices such as iPhone, iPad or watches," she said.

However, a big question mark revolves around the Disneyland business and regulatory hurdles. "I don't think Apple wants Disneyland, but I think it is a good independent business. Private equity or other types of real estate investment trusts or real estate buyers would be a reasonable choice." She said.

On the regulatory front, the analyst said it was not impossible for a deal of this size to be approved. "under US law, it is not anti-competitive for a hardware company or a distribution company to own a content company," she said. " It also cited the example of Comcast's merger with NBC, when NBC was about the size of Disney, and Amazon's acquisition of MGM in 2021 for $8.45 billion. "regulators may try to block the deal. But once in court, all precedents allow content to be acquired by distributors." She said.

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