Rumor Claims Apple Could Buy Disney

Posted: Apr 18 2017, 6:01am CDT | by , in Rumors | Apple

 
Rumor Claims Apple Could Buy Disney

A merged Apple and Disney would be worth $1 trillion

There have been plenty of rumors floating around out there about Apple and most of them have to do with new products and software. One of the strangest rumors about Apple making the rounds is that Cupertino is considering buying Disney, yes that Disney.

If Apple purchased Disney that would most certainly give it exclusive rights to Disney back catalog of animated classics and children's content. It would also make Apple the owner of the beloved Star Wars franchise and movie rights. That would presumably mean the only place to watch streaming Star Wars flicks would be via Apple TV and iTunes.

Variety reports that Apple could potentially find the cash to make a Disney purchase, which could cost around $200 billion or more. After Apple gobbled up Disney, the merged company would be worth about $1 trillion. The merged companies would have virtually limitless opportunities in content and technology reports Variety.

Analytics firm RBC Capital Markets said in a note to investors that such a massive cash outlay would require Apple to get tax breaks to enable it to "repatriate" cash that it is holding overseas. The purchase could also see Apple consumer tech make its way into Disney theme parks and would bring global streaming rights for ESPN.

"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.

If Apple tried to purchase Disney, a 40% premium for the entertainment giant would price Disney at about $237 billion. If the price is too high for Apple investors, Disney could spin off its theme parks and ESPN to lower the cost. Apple would need a tax holiday to bring overseas cash to the US in order to foot the bill. RBC says that after the merger earnings would increase 15-20% based on the estimated 40% premium.

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The Author

<a href="/latest_stories/all/all/3" rel="author">Shane McGlaun</a>
Tech and Car expert Shane McGlaun (Google) reports about what's new in these two sectors. His extensive experience in testing cars, computer hardware and consumer electronics enable him to effectively qualify new products and trends. If you want us review your product, please contact Shane.
Shane can be contacted directly at shane@i4u.com.

 

 

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