Mergers aren’t uncommon in today’s business landscape, but rarely do two giants the size of Apple or Disney end up in the conversation. Even rarer is the possibility or opportunity for companies of that size to join together, but the latest rumor from Wall Street points that out as a potential outcome.
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Speculative analysis from RBC Capital Markets says it’s a possibility (via Variety). “Recently, investors have increased their expectations that Apple could seriously consider acquiring Disney,” RBC analysts Steven Cahall and Leo Kulp wrote in a note to a client on Thursday. If Apple can pull the money together, a takeover of Disney worth around $200 billion would be possible, making their combined worth around $1 trillion.
“Content is a major focus for Apple, target size is not an issue, and Disney offers an avenue to diversify away from hardware without diluting the strong Apple brand,” RBC’s Cahall and Kulp wrote. All of this would depend on if Apple gets some specific tax breaks, allowing them to repatriate cash from overseas. “We like Disney’s fundamentals. Assuming Apple sees the same thing and has the cash, investor anticipation of a prospective transaction only adds conviction to the momentum we see in Disney’s shares,” said Cahall and Kulp.
That combination would give Apple access to Disney’s massive wealth of content, including their core characters, live-action remakes, and Marvel and Star Wars divisions. It would also allow Apple to get involved in their Theme Park empire, as well as Disney ventures ESPN and ABC.
Right now though this requires too many “if” factors, as Apple would need to win over the shareholders for such a big move, and would need around a 9% tax rate to access that offshore cash. For now, this is just a possibility, but if it does happen it would certainly impact the media landscape in a huge way.
Beauty and the Beast is in theaters now, while Pirates of the Caribbean: Salazar’s Revenge lands on May 26, 2017. Cars 3 is next up, racing into theaters on July 14, 2017, with Pixar’s Coco hitting on November 22nd, 2017. Disney’s live action Cruella currently has no release date, and neither does Maleficent 2, The Jungle Book sequel, or the live-action Aladdin. Toy Story 4 hits on July 13, 2018, and the live-action Mulan is scheduled for November 2nd, 2018. Mary Poppins Returns lands shortly thereafter on December 25, 2018.
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