Apple Buying Disney Sounds About Right to One Analyst
Is “Apple buying Disney” a future headline?
Has the time finally come for Apple to buy Disney? Yes it is, according to RBC Capital Markets’ Amit Daryanani.
In a new note to investors, which was shared with AppleInsider, the analyst says a “confluence of events” could soon make it practical for the iPhone maker to buy the mouse house. The potential buyout would “instantly scale AAPL’s services, content, and media portfolio.”
Apple currently sits on around $200 billion available for acquisitions. Daryanani believes Apple would have to spend most of this on Disney along with a significant debt acquisition. He suggests, however, Apple’s shares would jump 25 percent following any deal with Disney.
What would Apple get from Disney? A lot, as AppleInsider shows:
Besides just Disney-branded properties, the company owns “Star Wars” franchise producer Lucasfilm including special effects studio Industrial Light & Magic, “Thor: Ragnarok” developer Marvel Studios, ABC television, A&E Networks, and Pixar Animation Studios, amongst others. Also included in any deal would be the several Disney tourist attractions, a giant retail and merchandising arm, and a massive patent portfolio.
Daryanani isn’t the first analyst to advocate Apple buying Disney. In 2014, North River Venture’s Francis McLLerney said the same thing, noting that a merger would be “frightening obvious.” I’ve said the same thing numerous times in recent years.
Apple and Disney have a long history together with Steve Jobs having co-founded Pixar Animation Studios in 1986. In 2006, its acquisition by Disney was completed. In Disney, Apple would gain an immense film library, and own a stake in some television networks, including ABC and ESPN. The purchase would also give Cupertino a large stake in Hulu, which would be great news for Apple TV owners.
Just because Daryanani believes a “confluence of events” could bring Disney into the Apple umbrella, he doesn’t necessarily see it happening.
As AppleInsider concludes:
Even Daryanani sees the deal as just barely possible but still unlikely. The report cites a “greater than 0 percent” chance that Apple is considering the buy, but conversations suggest that there is far more consideration being given to an acquisition than there was six months ago.
What do you think? Should Apple buy Disney? Leave your comments below.