Can you imagine Tim Cook wearing Mickey Mouse ears at WWDC this June? Apple buys Disney. Last November, his CEO of Disney then and now, Bob Iger (who left Disney for a triumphant return similar to Steve Jobs’ Apple journey) said: says. All reports about the Apple-Disney deal were “pure speculation.”
Needham analysts recommend Apple buy Disney in deal worth $200 billion
The latest story of such a deal comes from an analyst named Laura Martin who works for a brokerage firm named Needham.according to Speaking to SeekingAlpha, Martin says Apple and Disney are “worth more together than separately.” She cites her 1.25 billion “unique consumers” who use Apple’s products and services, and her 570 million consumers that Disney connects with each year.
Apple and Disney already have a relationship
She also writes that each company’s strengths complement the others. Apple is adept at delivering content to “unique and wealthy users” through her two billion iPhones and iPads owned by Apple customers, she notes. Disney, on the other hand, has a reputation for creating content franchises that are distributed on digital screens around the world “not just in the physical world.” can come to the conclusion that
Martin added that both Apple and Disney are “marketing giants.” Both have some of the most popular brands in the world and can charge premium prices.The two companies have a loyal following who are willing to pay for the products and services offered by the two companies. There is
But such a deal would be expensive for Apple. The biggest deal Apple has ever completed Acquired Beats Audio for $3 billion in May 2014. Apple’s market cap is his $2.6 trillion, while Disney’s market cap is his $178 billion. Throw in a 25% premium (which may not be enough for a unique company like Disney) and Apple will pay him $222 billion to buy Disney. While financially viable, Apple may need to incur additional debt to make this purchase.
If Needham’s Martin looks at Apple’s acquisition history, you’ll find that the company typically acquires smaller companies with products that can be used in its devices within the next year or two. for example, In July 2012, Apple acquired biometrics company AuthenTec, which led to the development of Touch ID. A year later, Touch ID debuted on the iPhone 5s. In April 2010, Apple acquired Siri for his $200 million, and a year later the digital assistant came to his iPhone 4s.
Thanks to Pixar, the late Steve Jobs had strong ties to Disney
Still, analysts at Needham said Apple’s acquisition of Disney makes sense for the tech giant and its shareholders. She says that combining Disney content with Apple products could increase Apple’s market value by 25% over hers.
There are several connections between Apple and Disney. The late Steve Jobs was not only a member of Disney’s board of directors, but was at one point Disney’s largest shareholder. Jobs was one of his three founders of Pixar, and he was CEO of the animation studio when he was sold to Disney for $7.4 billion in an all-stock deal in 2006. .
In the past, some analysts said Apple could build Apple Stores in Disney parks, giving such retail locations the ability to attract millions of potential customers each year. was But it’s not clear if Apple has any interest in Disney other than making a huge, company-changing deal. And while a deal like this might benefit Disney shareholders, would executives at the Burbank-based company put up with their beloved characters playing side-by-side with Apple’s tech products? ?
Apple’s stock has been on a moderate uptrend over the past few days, with the stock trading up .99% to $162.36, or $1.59, as of today’s 4pm EDT close. Disney opened at the high of the day, likely due to Martin’s comments, and today he closed at $1.23 or his $98.10, which is 1.13%.