With stocks dropping during our growing national crisis, a Rosenblatt analyst said today that the current situation could be an opportunity for Apple to buy Disney. Hypothetically, this acquisition could bring some notable benefits for both companies and could put Apple’s foray in video streaming into a position of strength.
Bernie McTernan, a Rosenblatt Securities analyst, suggested in a Friday research report that Apple, led by CEO Tim Cook, could consider acquiring the Walt Disney Co., after its stock dropped below the $100 mark last week. In a potential acquisition, the current situation would give Apple a deep discount.
“We believe those with long-time horizons, like mega-cap companies with large cash balances and whose equity outperformed Disney over the last three weeks, like Apple, could take advantage of the volatility,” he wrote, noting that Disney’s market capitalization was approximately $165 billion, while Apple has about $107 billion in cash and securities. “The upside from acquiring Disney would be securing their content/streaming strategy and potential synergies from adding the emerging Disney ecosystem to the iOS platform.”
McTernan, who highlighted that “over the last three weeks Disney has lost about $85 billion or roughly one third of its market cap,” also argued that, among other benefits, streaming service Disney+ could help boost Apple’s TV+ streaming service. “Disney+ could solve Apple’s content problem as we believe AppleTV+ is off to a relatively slow start,” he said.
The analyst was clear that he was engaging in speculation.
As of today, Apple’s stock was trading at $242.21, while Disney shares settled in at $95.01.
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