Rosenblatt VP: ‘There is an opportunity for Apple’ to buy Disney

Rosenblatt Securities Vice President Bernie McTernan in a note to clients says there is an opportunity for Apple to make a major buy: Disney.

Currently, as stock prices are beaten down du to the worldwide COVID-19 coronavirus pandemic, Disney’s market cap sits at $171.463 billion.

Apple buy Disney. Image: Stormtroopers featured in Star Wars: The Force Awakens. Courtesy of Walt Disney Pictures
Stormtroopers featured in Star Wars: The Force Awakens.
Courtesy of Walt Disney Pictures

Yahoo Finance:

Disney is under scrutiny from investors with its stock under pressure as theme parks close and high-profile movie releases face delays. Bernie McTernan, Rosenblatt Securities Vice President, joins On The Move to discuss what Disney can do to turn things around in the midst of this pandemic.

Watch the video here.

MacDailyNews Take: Well, now, such an acquisition would certainly jibe with some whispers we’d heard prior to the coronavirus outbreak of a major Apple acquisition possibly being in the works. Such an acquisition would of course be quite an undertaking as Apple would have to bring the parts of Disney that are unique (think theme parks) into the fold (or keep them as an Apple subsidiary). On the positive side, Apple TV+ would immediately become a massive streaming entity as Disney+ content rolled into Apple’s streaming service would be an instant juggernaut.

23 Comments

    1. A decades old rumor that may now have some veracity. Sort of makes sense that Bob Iger stepped out of theme parks, perhaps so a split subsidiary could maintain continuity and valuation

  1. I read a lot stupid acquisition ideas here and elsewhere but always wondered why no mentioned Disney. Jedi plus Princesses plus Avengers plus Sports plus so much more will make Apple TV a must have product. The price will be painful but the acquisition will make Apple the big Kahuna in streaming and the stock, to quote Ralph Kramden, will go “…to the Moon, Alice, to the Moon.”

    Apple just needs to wait a little longer as the stock market implosion looks like it has bit more to run. Then they could snatch up the biggest bargain of the decade, if not the century so far.

  2. Hope it doesn’t happens Disney is bad enough with all the companies they’ve acquired then to let Apple and there we want to control everything you do attitude no, no, no.

    1. LOL. What is it with people and TP? I was trying to explain to my wife why people are hoarding TP. She was asking if they thought things were going to get really bad? I showed her the trailer from World War Z. I think that is what they expect to see down at Walmart.

      Still, what is it with TP? Spam and beer I can understand. Maybe a 55 gallon drum of potato chips from Costco.

          1. “Since you aren’t buying into the libtard hoax” well that would be the Democrat media and your sideshow deflection about an Italian cruise rate is snide and off topic.

            “Why am I so doubtful whenever you are out of sight…

            WooHoo…”

            Deflection… torments my heart
            Deflection… keeps us apart
            Deflection… why torture me

            Play on lyrics from “Suspicion” by the King Elvis as applied to USER tireless tactics…🤣

          2. It wasn’t a deflection. Dd was the one claiming that only liberals were concerned about Covid-19. If he really feels that way, he need not fear being cooped up on a ship with a bunch of coughing Italians. I was responding directly, not deflecting, when I pointed out that cruising is really, really cheap right now where it is possible at all. So are burials at sea, since there is much less demand for those than for Italian churchyard plots at the moment.

            It is amazing that folks like you and Dd are still minimizing the threat of the epidemic and suggesting that the whole thing is being whipped up by the Fake News Enemies of the People. Even your Fearless Leader is discussing the possibility of locking 300 million Americans inside their homes for a month or two.

            Pretending that the coronavirus was just a less serious flu has had real world consequences. People have died, and more will die, because of that complacency.

  3. I’ll elaborate further. Both companies excel at the management of processes. Apple’s ecosystem is the best on earth. Disney’s brand is also highly valued. I think Apple could use a more aggressive CEO than Tim. From an asset perspective, from media, products and services; I can see many positive cross-pollination from them. I can’t think of any negative affect from it, if it even happened. I am open to hearing others perspective (for and against) it, IF IF IF it even happened.

  4. Is this really something you want for 200BB+ likely cost: Quarterly: Revenue 20BB, profit 2BB, Margins 10%, Cash 7BB
    Compare that to Apple (1150BB market cap: Quarterly: Revenue 92BB, profit 22BB, Margins 24%, Cash 44BB (that seems low).
    So revenue good, profit low. Access to Disney’s library great.
    I also wonder if the monopoly commission would be concerned with the merger considering Apple’s moving into content generation and channel.

    1. You make a lot of good points. Still, in this environment Apple could probably finance this at close to zero interest. They could sell off some of the less interesting parts, run it as a separate company like File Maker, and slowly figure out how to take advantage of the good parts of both companies. Let the profits from Disney pay off the loan. Maybe Tim and company could figure out how to make Disney more profitable.

  5. For years on end, we’ve been bombarded with one dumb acquisition target idea for Apple to pursue after another. The only one that ever really made logical sense was to buy Disney. Even with the rollout of Apple + and their own content development, this still makes good sense long term. They should absolutely go for it.

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