Disney buyout speculation

[IlliniMouse]

Today on CNBC they were talking about the money that Apple has and speculating what the company was planning on doing with it. They were talking about a Facebook or Disney buyout.

Seriously??

I would think that Disney is too big for that to happen. And I don't know what I think of the thought of Disney being bought out.

(I'm not stock market savvy, so all the technicalities blew over my head, but that's what they were talking about!)

 

[Faldred]

I don't believe it for a minute, but Apple is noted for high-end products focused on enhancing (and controlling) the end-user experience. Disney might actually be a good fit at that level.

Randomly speculating further, Apple seems to be moving toward a data-driven view of the world, especially in media distribution. Disney has an excellent media distribution operation. (See recent article regarding distribution of upcoming Marvel-based films.)

Apple/Disney/ABC would be a very, very big player in the entertainment world.

 

[Cheshire Figment]

Let's see. According to the last annual report at January 11, 2010 there were 1,935,605,995 shares of Disney common stock outstanding. At COB Friday the market price per share was $34.97. This means that market value of The Walt Disney Company is just under $68 Billion.

Using similar computations for Apple, their current market value is just over $282 billion. So they could afford to buy Disney.

But why? Except for some graphics-intensive processes Disney is Microsoft-based for computing; just looking at Parks and Resorts, can you image what it would take to switch computer systems over?

 

[Faldred]

But why? Except for some graphics-intensive processes Disney is Microsoft-based for computing; just looking at Parks and Resorts, can you image what it would take to switch computer systems over?

I think that's irrelevant, honestly. If Apple were in the market to buy out Disney, it would be to become a major player in the media industry, not to sell hardware systems to Disney parks/resorts. (Though, of course, over the long-term, replacing old systems would likely be done with Apple's hardware, assuming necessary applications can be found/ported.)

 

[fannatic]

Steve Jobs (technically) already owns Disney - he's the largest shareholder. Besides, I thought that Disney has a market value of about $60 billion, Apple has $54 billion to spend. It would seem more likely and a more appropriate fit for them to buy Sony or EA - companies with tech products. I think that the media is just throwing Disney's name in because of their relationship with Jobs.

 

[Peter Pirate 2]

There really is no "Disney" anymore. The buyout already took place years ago. It's just another publicly traded company only concerned with this quarters numbers.

In actuality a complete / controlling buyout by someone like Jobs could be very good for us, the consumer ... Those of us who like innovation and quality vs. whatever it is we're getting from Disney these days.

Jobs has the money, we know he is innovative and creative, even in this realm, look at what he did with PIXAR.

Yeah, I'd take Setvie over MBA Bob anyday.

 

[nytimez]

I could see why Apple would want to own Disney's media properties... but I just don't think they'd want everything else that comes along with it.

 

[skiingfast]

Microsoft has had lots of cash for a long time. Yet it took over dinky company after dinky company. One of the companies people know of that it bought into was Apple. In sense Bill Gates owns Apple not Steve Jobs.

 

[nytimez]

Microsoft has had lots of cash for a long time. Yet it took over dinky company after dinky company. One of the companies people know of that it bought into was Apple. In sense Bill Gates owns Apple not Steve Jobs.

Not in any sense, actually.

 

[Oglet]

I can see it now... Spaceship Earth made into a giant apple

 

[skiingfast]

Not in any sense, actually.

How not?

 

[doconeill]

Microsoft invested $150 million in Apple back around 1997. Not Bill Gates. I don't believe Bill Gates has anything of Apple. And who knows what the status of that investment is. They probably sold it (non-voting stock).

 

[skiingfast]

Microsoft invested $150 million in Apple back around 1997. Not Bill Gates. I don't believe Bill Gates has anything of Apple. And who knows what the status of that investment is. They probably sold it (non-voting stock).

Apparently you know.


You do know the Bill Gates has a couple shares of Microsoft right?

Did you know Apple didn't have common household products in the 90's. Companies like P&G, General Electric and Sony did. Apple wasn't close to as big as it is today. Because of Ipods it has grown.

That little investment then, is worth a lot today.

Kind of like Steve Jobs cashing in stock options at $7 when apple shares are now $300. Maybe the biggest finacial mistake ever.

 

[doconeill]

Apparently you know.


You do know the Bill Gates has a couple shares of Microsoft right?

Did you know Apple didn't have common household products in the 90's. Companies like P&G, General Electric and Sony did. Apple wasn't close to as big as it is today. Because of Ipods it has grown.

That little investment then, is worth a lot today.

Kind of like Steve Jobs cashing in stock options at $7 when apple shares are now $300. Maybe the biggest finacial mistake ever.

Bill Gates may still have some of Microsoft. Microsoft may still have some of Apple. Does not mean that Bill Gates "owns" Apple. "Owns" implies some measure of control, which I don't believe Bill or Microsoft has or ever had of Apple - Steve would have seen to that. Owning a share isn't quite the same.

 

[Cheshire Figment]

I can see it now... Spaceship Earth made into a giant apple

However, think of the money Disney could get from Apple if they did that. It would just be similar to naming rights for a stadium or entertainment complex.

 

[Faldred]

I might put the teeniest ounce of credibility to this rumor on the day I can follow an Disney email link on my iPhone and actually be able to view the page...

Have I ever mentioned that I HATE Flash?

 

[skiingfast]

Bill Gates may still have some of Microsoft. Microsoft may still have some of Apple. Does not mean that Bill Gates "owns" Apple. "Owns" implies some measure of control, which I don't believe Bill or Microsoft has or ever had of Apple - Steve would have seen to that. Owning a share isn't quite the same.

You are very off base to think that someone has to control a company to own it. Haven''t you ever heard of the term "silent partner"?

 

[nytimez]

You are very off base to think that someone has to control a company to own it. Haven''t you ever heard of the term "silent partner"?

Microsoft's $150 million investment was not an ownership stake. It was a five-year investment in which Microsoft purchased non-voting stock in exchange for Apple dropping patent claims they had withstanding against Microsoft. After five years, they had the option to convert their investment into common stock. They declined and took their investment out of the company. There is no Microsoft investment in Apple today and has not been in a number of years, and when they did have an investment in the company they had no actual voting stake.

 

[nytimez]

I oversimplified that a bit -- M'soft did convert its nonvoting shares to common stock in 2001, and at one point held 18 million shares. It would have represented about 3 percent of the Apple if it was before the last split, or about 1.5 percent if it was after, I don't remember and can't really be bothered to look it up... In any case, it didn't matter much -- Microsoft sold its shares relatively quickly, the conversion to common stock may have simply been a vehicle to make it easier to sell their shares.

You can decide if a 1.5 percent - 3 percent stake meant Bill Gates "owned" Apple or was a "silent partner."

 

[skiingfast]

Microsoft's $150 million investment was not an ownership stake. It was a five-year investment in which Microsoft purchased non-voting stock in exchange for Apple dropping patent claims they had withstanding against Microsoft. After five years, they had the option to convert their investment into common stock. They declined and took their investment out of the company. There is no Microsoft investment in Apple today and has not been in a number of years, and when they did have an investment in the company they had no actual voting stake.

Took you a long time to look that up.