Time's Running Out for Apple to Make Blockbuster Media Acquisition: Analyst
*By Michael Teich*
Purchasing a major media company like Sony Pictures or Viacom might be the solution to Apple's iPhone problem, according to Wedbush Securities analyst Daniel Ives.
"It comes down to video content. That is the golden opportunity for Apple ($APPL). The problem is ... they're spending $1 billion to $1.5 billion on content. Netflix ($NFLX) is spending $8 billion, Amazon ($AMZN) $4.5 billion, Disney-Fox ($DIS) spending another $12 billion. They are significantly behind, which is why they need to acquire some studios to potentially broader media assets ー like potentially a Viacom ($VIAB), CBS ($CBS) ー to put into the install base."
Ives views content as the key success driver of Apple's services unit. While the company faces slowing demand for the iPhone, Wall Street has relied on Apple's content business, which includes the app store and Apple Music. Services revenue reached an all-time high of $10 billion in the fourth quarter of fiscal 2018.
"It's a services-led story but you need the content, which is why in our opinion, the stock has struck midnight for Apple to make an acquisition," Ives added.
These are the media companies Ives predicts Apple might acquire:
**High Probability:**
A24, Sony Pictures, and Lionsgate.
**Medium Probability:**
Viacom, CBS, MGM Studios.
**Low Probability:**
Disney, Netflix, gaming creator or platform on video game side.
Apple certainly has the financial firepower to orchestrate a deal for a media juggernaut. The iPhone maker has $237.1 billion in cash on hand, according to its latest earnings report. As of Monday's market close, Disney, Netflix, and Viacom's market valuations stand at just about $167 billion, $145 billion, and $12 billion, respectively.
For full interview [click here](https://cheddar.com/videos/video-content-the-golden-opportunity-for-apple-says-analyst).
After the 2021 boom, IPO activity slowed down significantly, in part due to monetary policy – but things are getting moving again with tech-friendly companies like Iboutta and Rubrik making a public debut.
With an increasing demand for mental health services, one person wanted to change the therapy game. In 2017, CEO Alex Katz founded Two Chairs, a company that uses technology to match patients with the right therapist.
Not only is April Financial Literacy Month, it’s also the kickoff of the spring homebuying season. So now is the time to make sure you have a financial plan in place – and why it might not be wise for that to include buying your first home.
While the U.S. may slowly be on the path to lowering inflation (and therefore interest rates), Europe has thoroughly trounced America, putting it on the path to lower rates by this summer.
April's release of the monthly Housing Starts and Building Permits reports by the Census Bureau provides crucial insights into the construction activity in the housing market. These reports are an economic indicator, shedding light on the current state of the housing market and its broader economic impact.
Caitlin Clark is heading to the Indiana Fever, the number one draft pick and the highest-scoring college basketball player of all time. And while she may not be getting millions from the WNBA, there's a few ways she'll net compensation for her generational talents.
Author of 'Clean Meat,' Paul Shapiro joins Cheddar to discuss how the cellular agricultural revolution helps lower rates of foodborne illness and greatly improves environmental sustainability. Plus, how his company The Better Meat Co. is bringing healthier food options to the table.
