Should Apple buy Disney?

[Cogswel_Cogs]

I mean not to be a troll here but why in te world would Appple want to buy Disney. Sounds like a giant headache.

[Cogswel_Cogs]

And it seems that Apple is trying to move into the cable/tv provider area, which would be a major conflict.
I am not exactly sure what Apple plans to do in TV area but would be very supprised if it did not involve them providing content to you.

[SpacePlace]

Originally Posted by Cogswel_Cogs

And it seems that Apple is trying to move into the cable/tv provider area, which would be a major conflict.
I am not exactly sure what Apple plans to do in TV area but would be very supprised if it did not involve them providing content to you.

I agree that Apple's domain is providing media content. I am looking forward to an Apple TV that will finally blur the line between my computing and television-watching existences. I'm hoping for an iCar and an iHome before Apple ever buying out Disney. But I'm glad that this was posted, very interesting, never really know what will happen with these companies (cough! Lucas! COUGH!).

[raidermatt]

Originally Posted by tjkraz

That said, after thinking about it I'm not even sure what sort of "nickel and diming" you are specifically referring to. A Disney parks visit isn't cheap, but you pretty much pay for the elements you wish to purchase: room, tickets, food, souvenirs.

There are some extra experiences which cost more--like the Animal Kingdom safari experience or fireworks dessert parties. But those items have such low capacity that there is no practical way they could be offered to 30,000 park guests each day.

Patience.

What do you think My Magic+ is really all about?

[Faldred]

Originally Posted by Cogswel_Cogs

I mean not to be a troll here but why in te world would Appple want to buy Disney. Sounds like a giant headache.

No, it's a solid question. My position in favor of the buyout is that Apple's future direction seems to be focused on media distribution,and that Disney's media assets (ABC, ESPN, Touchstone, et. al.) would give them leverage in pushing the industry as a whole to adopt the distribution models they envisage.

A counter-argument to that is that Apple wants to be the distribution channel, not necessarily the content provider, and that they ownership of large media assets might prove too large of a conflict of interest to get the other major players to go along.

Reasons this isn't totally crazy talk -- 1) Disney and Apple have had a long-standing relationship via the late Steve Jobs. 2) Apple has the assets to gain at least controlling interest without breaking the bank, and 3) Tim Cook (new Apple CEO) has expressed interest in doing... something... with the giant pile of cash the company has built up, rather than just sit on it.

Personally, I'd think it would be crazy for Apple to have not considered the possibility, even if they decided, in the end, that it wasn't a good idea.

[jgh]

Originally Posted by SpacePlace

But the bathrooms would be made completely out of that futuristic, glossy white material like all their computers and stores. And Siri could tell me what happened to all the toilet paper!

Also...the park maps wouldn't be able to get anyone anywhere! Sorry, unless you know the park like the back of your hand, you're outta luck!

[mickeyway]

NO WAY sponsor a ride in EPCOT, but no buying out on either side.

[leeg229]

We were talking about corporate takeovers in my finance class last night!! Let's see if I learned anything.

A takeover involves not just the market cap but the purchasing of assets and debt too. Disney would almost certainly employ the poison pill tactic and make it really difficult and undesirable for apple or any other company to employ a hostile takeover. Disney could also incur an insane amount of debt and make itself very unattractive to other companies. Disney could seek out a white knight corporation and merge with them to stave off a takeover. Another kind of funny action Disney could take is to, in turn, try to take over apple. The downside to almost any takeover defense is that the shareholders usually don't fare to well.

[DizCaptain]

Originally Posted by leeg229

We were talking about corporate takeovers in my finance class last night!! Let's see if I learned anything.

A takeover involves not just the market cap but the purchasing of assets and debt too. Disney would almost certainly employ the poison pill tactic and make it really difficult and undesirable for apple or any other company to employ a hostile takeover. Disney could also incur an insane amount of debt and make itself very unattractive to other companies. Disney could seek out a white knight corporation and merge with them to stave off a takeover. Another kind of funny action Disney could take is to, in turn, try to take over apple. The downside to almost any takeover defense is that the shareholders usually don't fare to well.

These are all pretty extreme cases.... I don't see either taking over the other, but if anything (and this is to be taken very lightly) a merger would be ideal, and I don't even think that should be an idea right now since both companies are high in profit.

[Dznefreek]

No
I don't want my fave rides rides being closed and reopened constantly as they make subtle and not needed changes (iPad/iPhone style)

[leeg229]

Originally Posted by DizCaptain

These are all pretty extreme cases.... I don't see either taking over the other, but if anything (and this is to be taken very lightly) a merger would be ideal, and I don't even think that should be an idea right now since both companies are high in profit.

Haha this wasn't so much a serious suggestion of what would/could happen, but a rather an opportunity for me to go over what we discussed in class. I just thought it was amusing that I would come across what we were studying and thought I'd apply it here.

[bom_noite]

Originally Posted by leeg229

Haha this wasn't so much a serious suggestion of what would/could happen, but a rather an opportunity for me to go over what we discussed in class. I just thought it was amusing that I would come across what we were studying and thought I'd apply it here.

You did pretty good! I doubt there would ever be a hostile take-over of Disney (certainly by Apple) in that they have had a pretty cozy relationship since Iger took over.

I also just do not seeing the Board accepting an all cash deal from Apple to purchase Disney. Remember, a Cash purchase means the owner of the stock would pay a Capital Gains tax on his profit.

Think of you owed a million+ shares like Iger - not good! Forget Iger, many investors would be livid at Disney for accepting the deal. Their are relaxed burdens on Capital Gains in estate deals after you die. Trust me, their are 1000's who have bought 1 to 10 shares a months for the last 30 years.

[chartle]

Originally Posted by bom_noite

You did pretty good! I doubt there would ever be a hostile take-over of Disney (certainly by Apple) in that they have had a pretty cozy relationship since Iger took over.

Comcast tried.

http://filmmakermagazine.com/58730-w...st-get-disney/

[bom_noite]

Originally Posted by chartle

Comcast tried.

Comcast is desperate - they know that Cable may die in the years to come, thus, they need to diversify.

I see this as a Bid for Disney - not a hostile takeover. Comcast does not have the assets to purchase Disney unless it was a part Cash / part Stock deal.

Disney ignored them once, and, will ignore them again.

[manning]

Originally Posted by bom_noite

An interesting way for Apple to spend their $138 Billion war chest. They would have about $38 B after all is said and done.

But, I don't think the Disney board would ever approve an all cash deal.

The compelling part is that both Google and Apple have their eye's set on the next logical progression of TV: Via the Web. Content providers are expected to be the logical winners in the years to come. ABC, the Dis Channel and ESPN would be a very big weapon for one of the two to control. But, perhaps the Disney Board may believe they can do better remaining independent?

Some things that I think make this unlikely:

• Seems to me there is little synergy other then the "TV of the future" thing.
• I also wonder about the public's reaction to Disney no longer being a independent company?
• Would other Media Companies revolt and withhold content from the I-Store?

If it did happen it would be an hostile take over attempt. The board would turn it down and then apple would have to turn to the stock holders they would have to gain control of enough stocks to pull it off.