Apple to Buy Disney Latest Rumors: Apple Needs $200M to Acquire Disney; Mega-Deal Will Be Game-Changing, Say Analysts
A speculative analysis from RBC Capital Markets has revealed that the long-running rumor about Apple acquiring Disney has actually been making some significant progress in recent times. Since its establishment, Apple has positioned itself as the prime mover in the tech industry. Considering its success, it is not unlikely for the tech giant to acquire Disney for a large sum of money.
While Apple is one of the most lucrative computer companies today, it needs to raise at least $200 billion to acquire Disney. Today, Disney is undeniably a powerhouse when it comes to the production and distribution of successful blockbuster films, the most recent of which was "Beauty and the Beast," which earned more than $1 billion worldwide.
According to reports, the mega-deal between Apple and Disney will depend on whether or not U.S. regulators will give the tech giant a tax holiday to repatriate its offshore cash. If that happens, Apple could receive about $233 billion, which is more than enough to acquire Disney.
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RBC Capital Markets said that if Apple acquires Disney, the union will create a company that is worth more than $1 trillion, with "almost limitless opportunities in content and technology." It is also seen to pose a potential source of competition to Netflix, considering how Disney holds the rights to several intellectual properties and animation studios like Pixar.
RBC analysts Steven Cahall and Leo Kulp wrote in the note to clients, "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."
Right now, the merger between the two industry giants is still far off, especially since several factors have to be considered aside from the supposed tax holiday. However, if the merger happens, the effects will definitely be game-changing, particularly for the tech and entertainment industries.
