Loading ...The Timing Is Finally Right
Over the years there has been speculation that at some point Apple would buy The Walt Disney Company. The timing was never right, until now. I believe AAPL has always said nice things about DIS but the valuation and management ego’s weren’t aligned. Now is the perfect time. AAPL is over as a growth company and buying DIS would add revenue even if it doesn’t revive their previous growth trajectory. The management problem no longer exists as Eiger is only back to stabilize a failing situation and is basically clearing the decks for a sale. Apple gets all the Disney franchises to add to it’s portfolio for a much cheaper value than when it was flying high. They could pay a premium of between 50-80% of DIS current price and it wouldn’t make a dent in their cash hoard. What it will do is most important. AAPL just made a top and is due for a significant correction based on their overvaluation and slowing growth profile. The perfect excuse to explain away a coming 30-50% price decline over the next few months would be a major acquistion. The purchaser of a public company almost always declines as a result of arbitrage. AAPL needs to correct anyway and this would help accelerate the timeline while they acquire a company they have desired for years. It won’t necessarily be a marriage made in heaven but the stars are lined up favorably at this time.
One would think that the Apple “management” would trash the Wokesters at least…hang them at best
Fully, Apple’s management is one of the top wokester teams on earth. Sold their souls to the devil when Jobs died. Now run by cretins aligned with WEF.
Personally I don’t see the rationale for that from Apples perspective. Disney’s business doesn’t align to Apple at all. Apple has so many other options to get into the streaming, parks, or studio business. I think if Apple was to buy anything it would be a chip company to go upstream in their value chain. They may think they could gain control of design on intel or AMD chips for their hardware. buying Ford or GM even makes more sense because they could start injecting their hardware and software straight into cars and then fast track their rumoured Apple cars. Disney just doesn’t make sense from alignment at all to me. Happy to hear rationale that does align though.
It isn’t an either or situation. Apple has the wherewithal to do any one or two of those you mentioned and still buy DIS. They may just buy the franchises in films etc.(content) that they want or they could buy the whole company and strategically get rid of any assets that don’t fit with their strategies. Lots of options and possibilities for the most valuable company with a boatload of cash.
Agreed. Which is why I am confused why you think Disney is at the top of their list. What is your rationale for them wanting movie franchises? I don’t see how that helps drive their core business or how they could possibly make it more valuable with their expertise compared to the current management expertise.
I also have never seen any reports of Apple wanting to buy Disney so I haven’t seen any analysis/rationale for that purchase.
Plenty of past analysis and speculation they might be interested. Content. Of course no company ever comes out and says we are interested in such and such other company. It is always done quietly in back channels and with investment bankers until such time as a deal get accepted and sometimes it leaks out that a deal wasn’t accepted. Don’t take my word for it go back and Google or use other search engines. It may have just been Wall Street trying to drum up a deal but there has been plenty of speculation over the years.
Had a search, you are right. And there is a lot of speculation again in the last 3 days for a deal again. I forgot that Jobs spent time at Pixar between his two stretches running Apple.
Personally, it doesn’t make sense to me, but as you said if bankers can make enough money on it they will try to convince both sides.
“Content.”
AOL – Time Warner 2.0 ?
How did that work out?