Speculation: Apple could buy Disney for 237 billion
- Thread starter digitalbabe
- Start date
Still waiting on antitrust suit against Disney.
They are one or two acquisitions from cornering the market and becoming a monopoly.
They are a mini-monopoly now, as it is. (And monopolies are not good for any business).
They are one or two acquisitions from cornering the market and becoming a monopoly.
They are a mini-monopoly now, as it is. (And monopolies are not good for any business).
Can't see it happening. Apple has $246b in cash. Buying Disney would cost $237b eating up 15 years and most all of its profit. It would be a suicide move......
I suspect this is rumor mongering to boost stock prices. As mentioned earlier, it would be suicide for Apple and a different focus for Disney. But it could change the way both tech and entertainment industries operate.
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TheStreet
In a world of what if and could be, Wall Street analysts tend to come up with fantasy mergers of major companies, the likelihood of the deal actually happening is probably 0%, but it is fun to talk about. RBC Capital Markets believes a merger between Apple (AAPL) and the Walt Disney Co. (DIS) would make strategic sense for the iPhone maker.
Adding Disney to its portfolio would give Apple greater exposure to media and entertainment content. As one of the largest entertainment companies in the world, The House of Mouse claims movie studios, resorts and theme parks, a news organization, and is arguably one of the most iconic and recognizable brands ever.
"We have seen increased discussions among investors regarding 'How could AAPL gain scale in media/content and what could it do with potential cash repatriation?' Media assets could be part of AAPL's M&A strategy and [CEO] Tim Cook has noted that deal size isn't a negating factor," RBC analyst Amit Daryanani wrote in a note Thursday.
But don't expect to be walking around the Magic Kingdom any time soon and see Cinderella sporting an Apple Watch as she heads up Main Street. The analyst contended that the odds of this merger taking place are low. However, he did go on to explain the benefits of such a colossal deal.
"AAPL's focus on services and its inability (so far) to replicate its music/iTunes strategy into content/media make acquiring DIS logical in our view. This is particularly true if AAPL can access $200B+ offshore cash via repatriation holiday. There are plenty of factors to consider, but such a deal would create a tech/media juggernaut like no other and instantly scale AAPL's services, content, and media portfolio, which would make the case for a higher valuation," Daryanni continued.
In terms of the finances behind the fictional deal, RBC sees Apple paying about a 40% premium to Disney's current price, valuing the company at about $157 per share, implying an equity value of $237 billion.
Disney stock closed in the green today.
(What will move markets this quarter and how should investors position themselves ahead of time? Jim Cramer sat down with four of TheStreet's top columnists recently to get their views. Click here to listen to his latest Trading Strategies roundtable with them and read their advice for stocks, bonds, forex and gold.)
In a world of what if and could be, Wall Street analysts tend to come up with fantasy mergers of major companies, the likelihood of the deal actually happening is probably 0%, but it is fun to talk about. RBC Capital Markets believes a merger between Apple (AAPL) and the Walt Disney Co. (DIS) would make strategic sense for the iPhone maker.
Adding Disney to its portfolio would give Apple greater exposure to media and entertainment content. As one of the largest entertainment companies in the world, The House of Mouse claims movie studios, resorts and theme parks, a news organization, and is arguably one of the most iconic and recognizable brands ever.
"We have seen increased discussions among investors regarding 'How could AAPL gain scale in media/content and what could it do with potential cash repatriation?' Media assets could be part of AAPL's M&A strategy and [CEO] Tim Cook has noted that deal size isn't a negating factor," RBC analyst Amit Daryanani wrote in a note Thursday.
But don't expect to be walking around the Magic Kingdom any time soon and see Cinderella sporting an Apple Watch as she heads up Main Street. The analyst contended that the odds of this merger taking place are low. However, he did go on to explain the benefits of such a colossal deal.
"AAPL's focus on services and its inability (so far) to replicate its music/iTunes strategy into content/media make acquiring DIS logical in our view. This is particularly true if AAPL can access $200B+ offshore cash via repatriation holiday. There are plenty of factors to consider, but such a deal would create a tech/media juggernaut like no other and instantly scale AAPL's services, content, and media portfolio, which would make the case for a higher valuation," Daryanni continued.
In terms of the finances behind the fictional deal, RBC sees Apple paying about a 40% premium to Disney's current price, valuing the company at about $157 per share, implying an equity value of $237 billion.
Disney stock closed in the green today.
(What will move markets this quarter and how should investors position themselves ahead of time? Jim Cramer sat down with four of TheStreet's top columnists recently to get their views. Click here to listen to his latest Trading Strategies roundtable with them and read their advice for stocks, bonds, forex and gold.)
Disney doesn't need to merge with Apple...The only way this could happen is if the shareholders take the money and run
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