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Apple/Disney merger: Rumours swell over possible mega-deal

'Disney offers an avenue to diversify away from hardware without diluting the strong Apple brand'

Jack Shepherd
Thursday 13 April 2017 15:43 BST
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Disney and Apple — two of the largest companies on Earth — could be planning a merger, according to analysts.

A speculative analysis by RBC Capital Markets claims Apple could potentially put together $200 billion-plus to take over Disney resulting in $1 trillion "tech/media juggernaut like no other.”

“Recently, investors have increased their expectations that Apple could seriously consider acquiring Disney,” RBC analysts wrote in a note to investors.

"The resultant company would be massive, with enough cash and balance sheet capacity to change the nature of the hardware, service, and content industries. If there's a deal out there that would strike fear in the hearts of Silicon Valley and Hollywood, this could be it."

According to Variety, the analysts claim an Apple-Disney company would create an instant competitor for Netflix built around Disney content, while their theme parks would benefit from Apple technology.

“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,” the note continues.

One of the many caveats is that, for Apple to bring the $230 million they have overseas back to the US to spend in Disney, they could have huge tax bill. However, CEO Tim Cook has previously spoken about being ‘optimistic’ new laws would lead to tax breaks.

It should be duly noted that RBC’s research is based predominantly on speculation and nattering investors rather than hard evidence.

There have been discussions surrounding an Apple-Disney merger for years, mainly spurred on after Disney CEO Bob Iger became an Apple board member in 2011.

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If a deal does come through, Apple would also acquire Disney’s other recent purchases, including both LucasFilm and Marvel Studios. Perhaps Tony Stark would be sponsored by Apple and Luke Skywalker will get an iPhone?

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