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

Wedbush analyst Dan Ives said today that while Apple is known for avoiding big mergers and acquisitions, it should make an exception for Disney's sports channel ESPN because Apple wants to expand sports programming on its streaming video service.

Dan Ives wrote in a report that for Apple, partnering with ESPN or buying ESPN outright was a no-brainer.

Dan Ives said: "The acquisition of ESPN may cost more than $50 billion (CTOnews.com note: currently about 365.5 billion yuan), but by providing Apple with valuable sports content, major TV rights, and changing Apple TV's future cross-selling opportunities and appeal, it will have great strategic significance." "

Apple's biggest acquisition so far came in 2014, when it bought Beats Music and Beats Electronics for $3 billion. While Apple rarely makes large M & A deals, Dan Ives believes Apple may make an exception for ESPN.

Dan Ives said: "Apple has realized that in this streaming arms race, it needs to acquire content through mergers and consolidate its position in the field of live sports content. "

As for ESPN, Disney has said it is considering selling the assets or finding strategic partners for them. ESPN executives also said they were looking to sell ESPN shares to a partner, which could help speed ESPN's transition to streaming.

Dan Ives believes this suggests ESPN"could be on the table in one form or another." Other analysts have even suggested Apple buy Disney outright.

Apple shares were mostly flat at the opening bell Thursday, while Disney shares were up 0.4%. As of Wednesday's close, Apple shares had risen about 36 percent this year, despite a 10 percent drop due to poor quarterly results. Disney shares have barely budged this year.

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