Apple buying Disney?

[tjkraz]

What are Disney's liquid assets? They are only worth in total what Apply has in liquid assets. Again it isn't profits that I had any problem with it was profits that sit there. I can't say how much Disney has just sitting there in a bank.

It appears that Disney keeps about $4 billion in cash on hand, give or take. They seem to enjoy using liquid assets to reacquire treasury stock. Those stock holdings are currently in excess of $50 billion. And they add profits of around $10 billion annually.

Like most large companies, Disney certainly has the wiggle room to pay its employees more. But doing so would come at the expense of profitability.

 

[Mazz519]

No way never happen...

 

[onetoescape]

Apple need exclusive content now to keep people in their ecosystem. Disney has a massive catalogue of programming both in TV and movies so makes a lot more sense than Netflix as Apple will own the content and will not have to negotiate with other suppliers. Add into this they couple add Apple things into the to the other parts of the Disney business as well. Content is king and as google and android in general are making strides towards becoming an equal footing apps wise the TV / movie streaming market is where the next battleground is. We have google launching YouTube Tv, Amazon entering it in a big way (buying NFL rights) and you have Netflix.

 

[Spridell]

IMO there is no way at all the DOJ would approve this.

Too many antitrust problems with this deal.

 

[adam.adbe]

Apple need exclusive content now to keep people in their ecosystem. Disney has a massive catalogue of programming both in TV and movies so makes a lot more sense than Netflix as Apple will own the content and will not have to negotiate with other suppliers. Add into this they couple add Apple things into the to the other parts of the Disney business as well. Content is king and as google and android in general are making strides towards becoming an equal footing apps wise the TV / movie streaming market is where the next battleground is. We have google launching YouTube Tv, Amazon entering it in a big way (buying NFL rights) and you have Netflix.

If Apple wants to go that path, and there's no evidence they do, although they may be forced there, it'll be cheaper and less risky for them to follow Netflix's model and provision their own new content.

 

[adam.adbe]

IMO there is no way at all the DOJ would approve this.

Too many antitrust problems with this deal.

Comcast own NBC/Universal. I see no reason why the DOJ would consider Apple owning Disney to be remotely as troubling.

 

[wilkeliza]

Comcast own NBC/Universal. I see no reason why the DOJ would consider Apple owning Disney to be remotely as troubling.

Comcast is a little different than Apple. Comcast was a telecommunications company but not on the level of apple when they bough NBC/Universal. It did not go through easily. There was a ton of political and public backlash and push to not allow this acquisition to go through. Apple buying Disney would see even more scrutiny then Comcast to NBC.
With all that said this is still just rumors. I don't think the voting share holders would ever let it go through.

I tried to look it up because people keep quoting that Apple already owns most of the Disney shares but that isn't true at all. Laurene Powell Jobs and the Steve Jobs trust use to own the most shares of 1 individual but she sold about half their shares in February to make quite a bit on them. Still she only ever owned about 7%. Disney would be an idiot in business if they ever let another company or investor own anywhere near 50% of their shares.

 

[Spridell]

Comcast is a little different than Apple. Comcast was a telecommunications company but not on the level of apple when they bough NBC/Universal. It did not go through easily. There was a ton of political and public backlash and push to not allow this acquisition to go through. Apple buying Disney would see even more scrutiny then Comcast to NBC.
With all that said this is still just rumors. I don't think the voting share holders would ever let it go through.

I tried to look it up because people keep quoting that Apple already owns most of the Disney shares but that isn't true at all. Laurene Powell Jobs and the Steve Jobs trust use to own the most shares of 1 individual but she sold about half their shares in February to make quite a bit on them. Still she only ever owned about 7%. Disney would be an idiot in business if they ever let another company or investor own anywhere near 50% of their shares.

Right, an Apple and Disney deal would have way way more scrutiny and would be looked at with a fine tooth comb.

Also agree I dont think share holders would vote for it either.

 

[OldsDr]

No way never happen...

Why not?

 

[tjkraz]

If Apple wants to go that path, and there's no evidence they do, although they may be forced there, it'll be cheaper and less risky for them to follow Netflix's model and provision their own new content.

Not sure what angle you're seeing but seems like buying an existing media company is far less risky than creating their own. Disney specifically would bring decades of valuable content including Marvel, Star Wars, Pixar and Disney's animation properties.

Creating their own content would definitely be cheaper for Apple, but each would carry a much higher risk.

 

[Oscar Preciado]

Some of you may heard about the rumors Apple buying Disney for $200 billion:
http://variety.com/2017/digital/news/apple-disney-acquisition-rumor-1202029827/

and some of you people are afraid of it.

Here's my opinion:

I'm worried about this rumor. Some of you remember that America Online (or AOL, for short), an internet company, bought Time Warner, a media company, for $160 billion in January 16, 2000 and the deal complete in early 2001. In late 90's, AOL is having a great partnership with Warner Bros.

During the 2000's, with Warner Bros., HBO, Turner Broadcasting (Cartoon Network, CNN, TBS, etc.), Time Warner Cable, DC Comics, Time magazines and licensed characters such as Looney Tunes and Hanna-Barbera, in the AOL's portfolio, along with Moviefone, MapQuest and Netscape. the company called AOL Time Warner at the time (in late 2003, now shorten as TimeWarner). However, the dot-com bubble burst, the company has to deal with loses of money and subscribers, etc. AOL and TimeWarner divorced in late 2009.

I think it could happen the same thing as the merger between Apple and Disney.

 

[Whatsthegoodword]

I share your concern. Disney needs to remain independent; not beholden to another board of director's whims. That's #1 IMHO. Number 2 is your point: Apple is hot right now (although not as hot as 7-8 years ago). They WILL cool off, as will Disney. Then they'll both be looking for ways to save a buck...

 

[Thom72]

http://www.cnbc.com/2017/04/18/veri...ted-in-merger-with-disney-comcast-or-cbs.html

Was reading last week verizon is also looking to possibly merge with Disney or Universal.

 

[adam.adbe]

Comcast is a little different than Apple. Comcast was a telecommunications company but not on the level of apple when they bough NBC/Universal. It did not go through easily. There was a ton of political and public backlash and push to not allow this acquisition to go through. Apple buying Disney would see even more scrutiny then Comcast to NBC.

Apple's size would not preclude it from purchasing Disney. Apple does not hold a monopoly in anything and one would not be created by a merger with an entertainment company, even one the size of Disney.

The only thing stopping this from happening is that neither party seems to have any interest in it happening.

 

[lockedoutlogic]

IMO there is no way at all the DOJ would approve this.

Too many antitrust problems with this deal.

Are you serious?

It seems antitrust is obselete for the great country....

And the reasons are "Reagan, bush(s), CLINTON, and Obama"

No money concerns are seriously jeopardized by antitrust anymore.

 

[lockedoutlogic]

http://www.cnbc.com/2017/04/18/veri...ted-in-merger-with-disney-comcast-or-cbs.html

Was reading last week verizon is also looking to possibly merge with Disney or Universal.

That's all Comcast....More cable and a Ripoff cell company to allow for more park construction on the I-4 property

 

[wilkeliza]

Apple's size would not preclude it from purchasing Disney. Apple does not hold a monopoly in anything and one would not be created by a merger with an entertainment company, even one the size of Disney.

The only thing stopping this from happening is that neither party seems to have any interest in it happening.

It may not auto stop them but 2 massive companies merging always get looked closely at. Of course neither party seems to be at the table so it is all a mute point but still will get looked at.

 

[lockedoutlogic]

It may not auto stop them but 2 massive companies merging always get looked closely at. Of course neither party seems to be at the table so it is all a mute point but still will get looked at.

The only mergers that are ever blocked are those of companie riddle with debt they'll never climb out of...

They re known affectionately as "airlines"....

If apple bought disney...wall
Street and Capitol Hill would all need an excited potty break...it would be a love fest...

 

[wilkeliza]

The only mergers that are ever blocked are those of companie riddle with debt they'll never climb out of...

They re known affectionately as "airlines"....

If apple bought disney...wall
Street and Capitol Hill would all need an excited potty break...it would be a love fest...

Wall street would be pretty eh about it because they like large companies to stay seperate. It gives them more options of successful companies to put their money in.

 

[Josh Hendy]

What Will Apple Acquire?

... Citi's Jim Suva ... writes that "we Identified Seven Potential M&A Targets: Three are media firms: Netflix, Disney and Hulu. Three are video game developers: Activision, Electronic Arts and Take-Two. And, one is an auto maker: Tesla. Each target confers some strategic benefit to Apple."
...
Disney has two positive attributes for Apple. First, on the positive side of the ledger, the firm is increasingly using technology to differentiate its consumer offerings and Apple could accelerate this. This occurs in the movie studio, the theme parks and increasingly at the network division (via BAMTech). Second, Disney’s size suggests it would use slightly more than Apple’s excess cash (assuming a 40% premium).

But, there are two drawbacks. First, the firm still derives the bulk of its revenues inside the US (due largely to ESPN). Second, the firm does own some assets that Apple may view as non-core (including theme parks, hotels, cruise ships and consumer products). While these assets could be spun-off or divested, what makes Disney such a unique entity is the ability to monetize its intellectual property across a wide array of businesses. Dismantling the firm’s assets could be risky.