Analyst Bernie McTernan is fueling speculation about an acquisition of Disney by electronics giant Apple. Such a purchase would have had an invaluable effect so far, especially in the broadcast market. Because both powerful companies operate video-on-demand services and could join forces against Netflix and company in a merger.
Apple buys Disney – wild rumor under control
The analyst is quoted in detail by the stock market magazine “Der Aktionär” as saying: “We believe that front-line companies with a long-term horizon and high cash reserves like Apple could take advantage of the volatility to attack Disney.” Simply put, wealthy companies could take advantage of the stock market crash of recent days to buy companies in difficulty.
And that is not a new scenario in the case of Apple and Disney. Such rumors have been heard for several months. In the area of video content in particular, Apple is lagging behind the competition like Netflix. Apple has some advantages over the other providers. With Apple TV and the spread of internal iOS software, it could push its own entertainment offering to market even more violently than it already does.
Disney shares have been under tremendous pressure for weeks. Since mid-February it has dropped from just under 130 to a good $ 80 apiece. However, Apple’s shares have also been affected. It also dropped from $ 300 to nearly $ 230 in the same period. However, McTernan notes that Apple has $ 107 billion in cash and shares and Disney has a market capitalization of just $ 165 billion. The magazine concludes that an acquisition of Disney by Apple “would not be a surprise.”