*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).
Stocks were up after the closing bell as Wall Street continued to pin their hopes on rate cuts after last week's comments from the Fed.
Cheddar News' Need2Know is brought to you by Securitize, which helps unlock broader access to alternative investments in private businesses, funds, and other alternative assets. The private credit boom is here and the Hamilton Lane Senior Credit Opportunities Fund has tripled in assets under management in just six months from November 2022 through April this year. Visit Securitize.io to learn more.
Google has agreed to pay $700 million and make several other concessions to settle allegations that it had been stifling competition against its Android app store — the same issue that went to trial in another case that could result in even bigger changes.
Nicki Minaj just reached a milestone that no other woman in rap has reached.
Apple announced that starting this week, it will stop selling some versions of the Apple watch in the U.S.
Southwest Airlines will pay a $35 million fine as part of a $140 million settlement to resolve a federal investigation into a debacle in December 2022 when the airline canceled thousands of flights and stranded more than 2 million travelers over the holidays.
The House of Representatives recently passed a bill aimed at increasing transparency in healthcare.
If you have a flexible spending account, here's some short information for you so you don't leave money on the table.
With high healthcare costs, bills can quickly add up. In some cases, it is possible to negotiate your medical bills. Barak Richman, law professor at George Washington University, joined Cheddar News to discuss the easiest way to talk to medical debt companies about what's owed.
Millions of people have selected insurance plans for 2024 but sometimes navigating them can be tricky time consuming and expensive. Paula Pant, host of 'Afford Anything' podcast, joined Cheddar News to break down what's needed to know about their insurance plans.
