Investors are speculating on the possibility that Apple will spend a great deal of money on acquiring Walt Disney Co., bringing both companies a big boost in terms of both consumer and entertainment. This information was reported by RBC Capital Markets’ analyst Amit Daryanani in a report released yesterday.
Daryanani said he supported such a deal, but gave no evidence that one of the two companies actually carried out the deal.
If two these companies are combined together , Disney’s content distribution capability will increase while Apple may also build video services they have been pursued. According to estimates, Apple will pay $157 for each Disney share Disney, equivalent to $237 billion.
Wall Street is increasingly interested in the deal between Apple and Disney after CEO Tim Cook and many Apple executives have hinted at the possibility of acquiring a media company. Earlier, sources said Apple was discussing about the acquisition of Time Warner (the boss of HBO and Warner Bros.) before AT & T spends $ 109 billion (including debt) to acquire Time Warner last autumn.
However, the rumor that these two iconic brands are “living in the same house” has been appeared for years, but has not come true yet. Steve Jobs came very close to the deal with Disney’s former CEO after selling Pixar to Disney in 2006.
However, according to Daryanani, the deal between Disney and Apple is something that investors are scurrying because they believe it can happen or simply because they are excited about it.
If combined, Apple and Disney will form a company with revenues of $285 billion. Based on the results for 2018, the company will have a market capitalization of $ 920 billion (or $1 trillion including debt).
The prospect of the deal will increase if President Trump and the US Congress can pass a tax reform program that helps multinationals such as Apple easily bring overseas profits to the United States. Apple currently has $200 billion in cash abroad because it does not want to pay a 35 percent tax rate.