Amid the coronavirus outbreak, countries are in lockdown. Tech companies are taking things digital, and the stock market is crashing down. Disney has become one of the companies to face the downfall of the shares.
In just over a month as the lockdown began, Disney’s stock fell over 30%. It was as a result of postponed movie releases and closed theme parks. To add fuel to the fire, major sporting events are canceled, affecting ESPN’s viewership. And longtime CEO of the company Bob Iger also resigned from his position.
Will Apple Acquire Disney?
Bernie McTernan, a Rosenblatt Securities analyst on Friday, shared a research report. And the report suggests that Apple could consider acquiring Disney amid the stock crash.
Disney’s market capitalization is approximately $165 billion, whereas Apple has, in cash and securities, about $107 billion. But in the last three weeks, Disney has lost around one-third of its market capitalization, i.e., about $85 billion. So, there is a possibility that Apple might get into it.
Does it benefit Apple?
The most expensive purchase Apple has done to date is buying Beats for $3 billion. Apart from that, there isn’t much to look forward to. However, acquiring Disney could mean a massive boost in Apple TV+’s streaming.
The addition of Apple TV+, Disney+, Hulu+, and ESPN+ could mean a lot more profit for Apple. However, Apple would be taking on a lot of responsibilities if it decides to acquire Disney.
In 2019 alone, Disney spent $1 billion on streaming content. And by 2021, it expects the number to go up to $2.5 billion. So, apart from selling hardware, Apple will also need to balance all of Disney’s businesses, including movies, theme parks, and resorts. And considering the dept Disney is in, it might not be a great idea.