According to a speculative analysis from RBC Capital Markets, the long-running rumor that Apple may buy Disney is gaining some traction in reality.
Currently, Apple has a mind-blowing amount of money, but to buy Disney, they would need upwards of $200 billion. Therefore, the mega-deal now depends on U.S. regulators giving Apple a “tax holiday” to repatriate offshore cash. If Apple could get a 9-percent tax rate, it would give them about $223 billion, which puts them solidly in the ballpark to buy Disney. According to RBC Capital Markets, an Apple-Disney union would create a company worth more than $1 trillion, with “almost limitless opportunities in content and technology.”
RBC analysts Steven Cahall and Leo Kulp told Variety that the deal could potentially be mutually beneficial. “Content is a major focus for Apple, target size is not an issue, and Disney offers an avenue to diversify away from hardware without diluting the strong Apple brand,” they wrote. Cahall and Kulp also added that an Apple-Disney powerhouse would immediately threaten the future of Netflix. Recently, analysts speculated that Disney might consider buying Netflix, but that rumor seems to be fizzling out, mostly because it just doesn’t make a lot of sense.
In any case, a possible Apple-Disney merger would still be a ways off, and depend on many factors from the supposed “tax holiday” to Apple’s wary shareholders. However, if it did happen, the effects would be pretty instant, not to mention game-changing. One thing’s for sure: Netflix needs to stay on their toes.