Apple could buy Disney after pullback

AggieDizzer

Mouseketeer
Joined
Mar 22, 2019

Thoughts? Would you rather have Tim Cook calling the shots at Disney than Bob Chapek? Could it even make sense Are there some corporate synergies here? Certainly it's wild speculation but these are strange times...
 


  • Kevin4321

    Earning My Ears
    Joined
    Jan 22, 2017
    Debt markets froze on Thursday. Banks aren’t extending credit for any deals right now, let alone a company whose theme parks and cruise lines are closed. Liquidity will return soon (the fed injected $1.5 trillion) but banks are modeling a recession that will negatively impact the earnings power of tourism/entertainment businesses like Disney. Even Apple would need more cash/stock to do a deal. It may be counter intuitive, bit it is easier to do a deal like this with a booming economy, even if it means a higher acquisition price. Much like Disney was able to buy Fox. Also, even if they could buy DISNEY does not mean they should. Disney is a complex company with very little overlap with apple outside of streaming, so not much synergy. There is a risk it could end up like AOL/Time Warner, especially since the special Iger/Jobs relationship is no longer present.
     

    AvidDisReader

    Mouseketeer
    Joined
    Mar 24, 2019
    With Disney's stock having taken a dive, they should use all their liquidity they have to buy back their own stock. It makes it very tough for someone trying a hostile take over. Also, when things do calm down, it would put Disney it good shape if they had their eyes on acquiring something.
     

    freshmanjs

    DIS Veteran
    Joined
    Aug 6, 2006
    With Disney's stock having taken a dive, they should use all their liquidity they have to buy back their own stock. It makes it very tough for someone trying a hostile take over. Also, when things do calm down, it would put Disney it good shape if they had their eyes on acquiring something.
    Wow what a massive misunderstanding of corporate finance. It makes zero difference to a potential buyer if the cash is on hand or has been used to buy shares. Zero difference. The impact on enterprise value of share buybacks is zero.
     
  • AvidDisReader

    Mouseketeer
    Joined
    Mar 24, 2019
    Wow, to not understand hostile takeovers is incredible. Yes, it matters if you own a significant amount of your own stock. It means Apple would need to do a lot of work lining up some of the larger Disney stock holders to vote with them. This IS a big deal, too bad you do not understand.
     

    freshmanjs

    DIS Veteran
    Joined
    Aug 6, 2006
    Wow, to not understand hostile takeovers is incredible. Yes, it matters if you own a significant amount of your own stock. It means Apple would need to do a lot of work lining up some of the larger Disney stock holders to vote with them. This IS a big deal, too bad you do not understand.
    Lol. For one thing, apple never do a hostile takeover of Disney. Regardless, it’s very clear you have no idea what you’re talking about on this topic. (Hint: repurchased shares are not voting shares anymore).
     

    Krandor

    DIS Veteran
    Joined
    Mar 26, 2014
    With Disney's stock having taken a dive, they should use all their liquidity they have to buy back their own stock. It makes it very tough for someone trying a hostile take over. Also, when things do calm down, it would put Disney it good shape if they had their eyes on acquiring something.
    I don't see applle doing a hostile takeover. If they wanted Disney they would present a merger/buyout offer to the board that was too good to turn down. A hostile takeover is not a good look for the company doing it and Apple (like disney) cares about their image. Neither company would want to be a part of "Barbarians at the Gate 2"
     

    OSUZorba

    DIS Veteran
    Joined
    Sep 5, 2014
    I'm honestly a bit surprised at this thread. Do we really think that Disney is going to be hit hard enough that someone might try a hostile takeover, or that Disney would even willingly consider a buy out??? I know this is going to hurt them, but really, to that degree?
    Every public company will consider a buyout offer with the right terms. Look at Anheuser-Busch, which still had a large chunk of family ownership. Disney is owned almost entirely by finical institutions and they'd vote to sell in a second if they thought it would bring the best value to their clients.

    However, I have a feeling most of those institutions look at the current drop to be relatively temporary and I don't see them voting to sell at 20% off highs when nothing has fundamentally changed long term.
     



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