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Apple to merge with Disney? One analyst's pipe dream still sparks thoughts of "what if?"

Posted: , by Alan F.

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Apple to merge with Disney? One analyst's pipe dream still sparks thoughts of
RBC Capital Markets analyst Amit Daryanani told clients in a note on Thursday that it would make perfect sense for Apple to use some of its large cash holdings to purchase Disney. While such a deal is highly unlikely, the analyst said that the president's proposed plan to have a tax repatriation holiday, during which overseas profits could be brought into the U.S. for a lower tax rate, could generate more than $200 billion for Apple to use in a transaction.

The analyst also pointed out that Apple has been unable to recreate the success it has had in music with iTunes. A deal with Disney could help it create a video version of iTunes. Darayani gave clients six reasons why Apple might buy Disney:

  • Accelerates AAPL's push into services and content.
  • Instantly leapfrogs Netflix, Amazon, and YouTube in content and resets the lead with content narrative.
  • AAPL has been unable to replicate its music playbook to video.
  • Iconic brand — there are few brands that AAPL could acquire that wouldn't dilute its iconic presence and customer relationships; DIS would clearly strengthen (and not dilute) the brand value.
  • Even using minimal cost synergy, we see the deal being accretive by 15-20 percent.
  • AAPL has been increasingly looking at larger deals and noted that services is a focus.

Apple and Disney are actually somewhat related. The entertainment firm's largest stockholder is not a Disney. It is the Steven P. Jobs trust. When Jobs helped arrange the sale of Pixar to Disney in 2006 for $7.4 billion, the all-stock transaction left Jobs with 7.7% ownership of the Mickey Mouse firm. It also left the DROID name in the hands of Disney. Which means that ironically, if Apple were to ever buy Disney, it will make money on the sale of every Motorola DROID branded handset.


But don't expect to read about this deal in the Wall Street Journal. Disney, which had to fight off a couple of threats to its independence in the 1980's, has no desire to belong to any other company. From Apple's point of view, this would be quite an expensive deal, even for a company swimming in cash. Assuming a 40% premium to the current valuation, it would cost more than $250 billion to buy Disney. Apple's largest acquisition to date was the $3 billion purchase of Beats Audio in May 2014.


source: CNBC

17 Comments
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posted on 14 Apr 2017, 00:17 3

1. omnitech (Posts: 764; Member since: 28 Sep 2016)


Disney buys,. they don't merge. And Apple is too rich from milking sheep to be bought.

posted on 15 Apr 2017, 14:18 1

17. Highside (Posts: 143; Member since: 31 Jan 2017)


2 evil companies, built by scumbags.

posted on 14 Apr 2017, 00:32 4

2. RoboticEngi (Posts: 1032; Member since: 03 Dec 2014)


Suddenly all children in the world are forced to buy Apple products. Dammit they are nasty.

posted on 14 Apr 2017, 00:37 1

3. kiko007 (Posts: 5065; Member since: 17 Feb 2016)


Did you even read the title?

"Suddenly all children in the world are forced to buy Apple products."

According to the lot of you, they'd be ecstatic. Ya'know... cuz of the brainwashing!

posted on 14 Apr 2017, 00:53

4. Chuck007 (Posts: 1294; Member since: 02 Mar 2014)


I'd much rather they bought Sony for their PlayStation division and TV business. Can't care less how two over the top successful companies merge as one cause that always spelled disaster for either company.

posted on 14 Apr 2017, 09:02 1

10. marorun (Posts: 5029; Member since: 30 Mar 2015)


I would hate for Sony to be purshased by apple.

I would probably switch to xbox lol.

dont wana be stuck in a overpriced ecosystem.

posted on 14 Apr 2017, 09:17

11. Rampage_Taco (Posts: 445; Member since: 17 Jan 2017)


I know, they just added support for an External HDD, that would be gone in a week and they would just release a 2TB edition for $200 more than the PS4 Pro

posted on 14 Apr 2017, 00:55 4

5. techbuttcheex (Posts: 140; Member since: 25 Jul 2015)


Only retards fantasize about giant multinational corporations merging. Plz find something else to write about.

posted on 14 Apr 2017, 01:17 2

6. SIGPRO (Posts: 1844; Member since: 03 Oct 2012)


So disney can make a film about this rotten fruit company!

posted on 14 Apr 2017, 01:52 3

7. RebelwithoutaClue (Posts: 3418; Member since: 05 Apr 2013)


The snow white picture is funny since she ate a poisoned apple...

posted on 14 Apr 2017, 03:40 2

8. monoke (Posts: 726; Member since: 14 Mar 2015)


I hope to God not. Apple, stay the hell away from my marvel and Disney princess movies please! Lol.

posted on 14 Apr 2017, 08:51

9. TechieXP1969 (Posts: 13806; Member since: 25 Sep 2013)


This analyst is dumb. Apple isn't going to do it after its joint projects with Pixar.

Apple and Disney are to different to be a single company or partner.

If Apple and isney joined, Disney would be ruined.

Disney is already far more commercialized now vs when I was a kid when Disney was still alive and cared about the public.

Today's Disney like today's Apple is surely not the company I remember as a kid.

posted on 14 Apr 2017, 09:19

12. Rampage_Taco (Posts: 445; Member since: 17 Jan 2017)


The DROID name wasn't given to Disney when they purchased Pixar, it was their purchase of LucasFilms that gave Disney the ownership of DROID.

posted on 14 Apr 2017, 21:13

14. Alan01 (Posts: 424; Member since: 21 Mar 2012)


I can see where it might sound like I said that that, but no...as you said the Lucas Film purchase by Disney brought the Motorola Deal to Disney. It also (in theory) meant that Steve Jobs' Trust proits from the sale of Motorola DROID handsets (higher profits = higher stock price...in theory)

Regards,
Alan F.

posted on 15 Apr 2017, 08:05

16. Rampage_Taco (Posts: 445; Member since: 17 Jan 2017)


Well thank you for clarifying Alan

posted on 14 Apr 2017, 15:26 1

13. darkkjedii (Posts: 23902; Member since: 05 Feb 2011)


Merge all you want Apple, but I'll personally kick your ass, if you ruin Star Wars.

posted on 15 Apr 2017, 00:15 1

15. TechieXP1969 (Posts: 13806; Member since: 25 Sep 2013)


Apple Wars - Return of Steve Jobs

Apple Wars - Cook Strikes Back.

Apple Wars - There is no Hope

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