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.<\/p>\n","protected":false},"excerpt":{"rendered":"
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 … Continue reading