Mission Impossible: Experts say Apple should spend $ 170 billion to buy Disney

In the past, the possibility of Apple acquiring Disney seemed to be an unlikely thing. It’s not that the iPhone manufacturer doesn’t have enough potential, but Apple just likes to buy smaller companies with a specialized product or technology that can be used on Apple devices within the next 12 to 24 months.

Should Apple buy Disney?

However, at this time, analysts say that the acquisition of Disney will give Apple the ultimate content store and make them a world-class “streamer”.

Disney is currently worth about $ 171.5 billion, with around 30% insurance coverage to be worth $ 223 billion. Apple may use some debt, take a bank loan, or use its own stock to make an acquisition of Disney.

Bernie McTernan, Vice President of Rosenblatt Securities, said that this was a good time for Apple to launch such a deal. According to Yahoo Finance, McTernan noted that just before the corona pandemic had been rumored that Apple would make a major acquisition.

Disney will help provide Apple content, strong cash flow and Disney + / Apple TV + combination will definitely be much better than Apple TV +. Placing an Apple Store inside some of Disney’s heavily engaged amusement parks will certainly help Apple increase product sales.

Steve Jobs used to be Disney’s largest shareholder

Disney’s stock is currently in decline, and this is a great opportunity for Apple. Analysts noted that in the past three weeks, Apple’s stock has exceeded 10% compared to Disney and the iPhone maker has at least $ 170 billion in cash on hand.

After becoming an investor at Pixar, Apple co-founder Steve Jobs became Disney’s largest individual shareholder. The company, separated from Lucasfilm, needed an investor and Jobs paid $ 5 million for technology rights and invested $ 5 million in Pixar.

Jobs became Chairman and CEO of Pixar and received a huge amount of Disney stock when the company bought Pixar for $ 7.4 billion in a deal in 2006. This deal was awarded to Jobs 7% ownership of Disney (worth $ 3.9 billion).

Ironically, when Disney bought Lucasfilm in 2012, sales of Motorola DROID handsets really benefited Steve Jobs’ fortune. That’s because Verizon has agreed with Lucasfilm to use the Droid name on its Android phones and Disney benefits from this. At that time, Jobs was still Disney’s largest shareholder.

Former Disney CEO Bob Iger, who left the CEO position of Disney last month wrote in his book: ” I believe that if Steve (Jobs) is still alive, we will combine the our company or at least seriously discusses the possibilities . ” McTernan feels that combining the Disney ecosystem with the iOS ecosystem ” can create some interesting things “. Buying Disney will also help Apple own both ABC and ESPN.

Reference: PhoneArena