Lately, there have been a lot of rumors about the possibility of a possible deal between Apple and Disney, especially on Wall Street. And, from a couple of points of view, this would totally make sense!
According to The Street, analysts have pointed out that Apple’s decision to buy Disney would eventually lead to some complications. RBC Capital Markets Amit Daryanani believes that the possibility of the deal becoming reality is merely “greater than zero %”, but Apple could be willing to pay more than $200 billion for the movie studios, currently valued at $180 billion. And investors are also fancying the idea!
Not the biggest financial effort for Apple, but with one condition!
Even though $200 billion is a huge amount, Apple could close the deal without paying anything at all! The latter can happen if President Donald Trump continues with his plans regarding a tax holiday, which means that the Cupertino-based company could bring back to the U.S. more than $200 billion, in offshore cash.
CEO Tim Cook has previously signaled that he’s seriously considering some mergers and acquisitions, so the idea of becoming a player in the original content business would be very tempting.
“There’s not a size that we would not do, based on just the size of it. It’s more the strategic value of it,” he said while talking about the company’s Q1 earnings call. “…We’re learning a lot about the original content business, and thinking about ways that we could play in that.”
Due to Mr. Cook’s interest in M&A, analysts have constantly speculated about how Apple combined with Disney could look like.
One step closer to $1 trillion
First of all, this would raise the tech giant’s market cap of $920 billion, being closer to Amazon and Alphabet, in their race to becoming the first company to reach a $1 trillion valuation. Also, Apple would transform into a technology and media company, with over 300,000 employees!
Finally, if the deal will be closed, it will be very interesting to see how both Amazon and Google will respond to this!
