Both Apple and Walt Disney have been fueling the Millennial generation with the epitome of sleek technology and animated magic respectively. Thus, a merger between the two companies would create a synthesis between two idols of the 90s. Investors are also aiming at such a union. However, their reasoning is different. They believe this is the only way the two companies can gain substantial economic boost. Today’s world is witnessing an unavoidable impact on the entertainment and tech industries. This major deal would propel both Walt Disney Co. and Apple to the frontlines.
The Major Deal Can Lead to a $1 Trillion Company
On Thursday, one of the analysts at RBC Capital Markets, Amit Daryanani, issued a report regarding a possible major deal between Apple and Walt Disney. The big picture is that this merger has two influential players that together can create a $1 trillion company. As a result, their opportunities of growth would become limitless in both technology and content.
“Recently, investors have increased their expectations that Apple could seriously consider acquiring Disney.”
However, it is up to Apple to decide whether this major deal is worth at least $200 billion or not. Nonetheless, this new hybrid has the potential to become a prevailing rival to behemoths such as Netflix. Both companies own something of immense value.
Disney has its own source of Mouse House content which holds the key to viral success. On the other hand, Apple is always on the trail of latest technology plus it controls a large user base. Together, they can fill each other’s blind spots and become a strong leader in the two industries.
Disney and Apple Executives Have Already Looked into a Merger Two Years Ago
The RBC analyst portrays several possibilities. For instance, Apple can enhance Disney’s theme parks with immersive consumer technologies that amplify entertaining experiences. The rumor of a merger between Apple and Disney is an old hope of investors.
The supposition was first fueled by Tim Cook, Apple CEO, last fall. He stated that the company is strong enough to support any size of a new acquisition. Previously to this statement, there was a meeting between Apple and Disney executives back in 2015. The dialogue tackled the possibility of a merger as well.
In the RBC report, this major deal could lead to massive earnings. The numbers show the potential of a 15% to 20% increase in price per share based on the low debt owned by Disney.
Image source: 1