Declining stocks for coronavirus: could Apple buy Disney?


The favorite hobby of analysts is to speculate. And here it is, accomplice the earthquake that caused coronavirus on all stock exchanges in the world, an interesting hypothesis has arisen in recent weeks: that Apple wants to take advantage of Disney’s hard time and buy it? To put on the plate an idea as revolutionary as, in fact, possible, it was the first Bernie McTernan, analyst at Rosenblatt Securities, on Friday 13 March, when the entertainment industry had already been hit hard by the virus, with the closure of cinemas (and amusement parks). And when Disney’s stock had already dropped to under $ 100 in value. We believe that those with long-term goals, such as multinational corporations with large capitals and whose net worth has surpassed Disney in the past three weeks, such as Apple, could take advantage of volatility. The positive aspect of the Disney acquisition would be the security of their streaming strategy and the potential synergies resulting from the addition of the emerging Disney ecosystem to the iOS platform.

Shared relatives

Once the bomb was dropped, in the form of hypotheses, there was no shortage subsequent analyzes and additional hypotheses on the possible acquisition. Going in order: the idea of ​​a union between the cartoon king and the queen of smartphones not new. First of all well remembered that Disney in 2006 – in great crisis due to its lack of evolution in the digital world – has acquired Pixar, a company founded by Steve Jobs (or the creator of Apple). For many, this was not an acquisition but more than anything else a merger: Disney spent 7.5 billion dollars to buy content and minds from the company that created masterpieces such as Toy Story and UP !, but also accepted Steve Jobs on the Board of Directors, he gave huge powers to John Lasseter – who from creative director and soul of Pixar became creative director of Disney – and has given up the position of president to Ed Catmull, first in charge of Pixar. Finally the exit of the CEO Bob Iger, the one who thought and wanted the acquisition: I believe that if Steve Jobs were still alive, we would have united our companies. Or at least discussed the hypothesis very seriously.

The collapse due to coronavirus

Kinships are not lacking. It should be added iThe difficult period that Disney is experiencing. Despite get ready for the debut of its Disney + streaming platform in Europe – in the United States for several months already – the emergence of the coronavirus seems to have weighed heavily on its financial situation. THE amusement parks are closed, some new productions – like the remake of Mulan, Black Widow and New Mutants – are very late. In the past month its shares have lost about 30 percent of their value.

What Apple would gain from it

One thing is still missing: the motive. Apple built a new streaming platform, AppleTv +, who desperate hungry for original content. It can boast of successes like The Morning Show, but the schedule is not yet full enough to think of challenging giants like Netflix. Acquiring Disney – also new on the streaming scene – could be a strategic move to have immediate access to quality content and to which the loyal publicas well as to acquire the huge structure needed to create new ones. There is to add the precious Disney brand and what it brings with it: Star Wars, Marvel, the same Pixar. And then the Fox, the American streaming service Hulu.

Pros and cons of theory

It is, at the moment, one speculation. One possible, among many, acquisitions that we could witness during this period of social and financial crisis. The premises are there, but nobody knows at the moment what the plans and strategies are being put in place in Cupertino. One thing for sure: the content – i services – are a fundamental part of Apple’s future. The division on which more efforts are being made and which you are betting on get rid of the iPhone monopoly. Focusing on Disney would not be such an absurd choice. At the same time, the idea seems a little too abstract if you think that Disney also operates in sectors in which Apple has no interest: for example amusement parks or merchandise. Which are also important slices of its turnover.

March 21, 2020 (change March 21, 2020 | 16:38)



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