Needham analyst recommends that Apple purchase Disney in a deal that could be worth $200 billion
Apple and Disney already have a relationship
She also writes that the strengths of each company complement the other. Apple, she notes, is skilled at distributing content to its “unique and wealthy users” through the 2 billion iPhone and iPad units that Apple customers own. Disney, on the other hand, has a great reputation for creating content franchises that get distributed over digital screens worldwide “as well as in the physical world.” Looking at this analysis, one could come to the conclusion that an Apple acquisition of Disney might work.
Thanks to Pixar, the late Steve Jobs had a strong connection with Disney
Still, the Needham analyst said that an Apple purchase of Disney makes sense for the tech giant and its stockholders. She says that combining Disney’s content with Apple’s products could potentially result in a 25% hike in Apple’s market value.
There are some connections between Apple and Disney. The late Steve Jobs was not only a member of the Disney board, he also was Disney’s largest stockholder at one time. Jobs was one of Pixar’s three founders and was CEO of the computer animation studio when it was sold to Disney in 2006 for $7.4 billion in an all-stock deal.
In the past, some analysts said that Apple would be able to build Apple Stores in Disney parks giving such retail locations the ability to attract millions of potential customers every year. But besides making what would be a company-changing behemoth of a transaction, it isn’t clear whether Apple has an interest in Disney. And while such a deal might pay off for Disney stockholders, would executives at the Burbank headquartered company put up with their beloved characters playing second-fiddle to Apple’s tech products?
