An Apple/Disney Merger on the Cards?

Apple has hit the headlines this week with the media speculating whether or not they are set for a mammoth acquisition due to its significant and ever-growing stash of cash.

It’s estimated that the tech giant holds somewhere in the region of a quarter-trillion dollars that it could use to snap up another business or two. Amongst the potential acquisition targets is Netflix and Tesla Motors, with both brands making a lot of sense for Apple given its interest in providing a TV service and the company’s more recent work on self-driving cars.

One of the bolder acquisition predictions comes in the form of Disney. The entertainment behemoth has not displayed any inclination that it’s looking to sell, but as it’s a publicly-held company, it must consider all takeover offers. Acquiring Disney would not come cheap for Apple likely costing in the region of $250 billion dollars, or $157 a share. It’s this high price tag that has caused insiders to speculate, given that Apple is one of the only companies in the world that could actually pay that sum of money.

If Apple did acquire Disney, we would see the world’s first one trillion dollar company. Additionally, it would combine some of the world’s most successful and instantly recognisable brands in the technology and entertainment arena, including iPhone, Mac, Disneyland, ESPN and Lucasfilm.

Talk of a potential mega acquisition has gathered pace in the wake of the Trump administration, where promises have been made to lower US taxes on overseas corporate cash, that’s brought back into the country. Apple’s CEO Tim Cook has said that the company will look at bringing back the cash stocks it keeps abroad, which would undoubtedly make financing a blockbuster deal a lot easier.

One thing is for certain, all eyes will be on Apple over the coming months. Watch this space for further updates on the story as it progresses.

Stay tuned to our blog for industry M&A analysis and remember to get in touch with our experienced team with any questions you have about the M&A process and how Benchmark International can help you.

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