ACCORDING TO MANY TECHNOLOGY NEWS SOURCES, APPLE IS SEEKING TO EXPAND ITS REACH IN THE MEDIA, CONTENT AND ENTERTAINMENT SECTORS THROUGH THE ACQUISITION OF DISNEY. THIS DEAL COULD COST APPLE $200 BILLION. HOWEVER, IT WILL TURN APPLE INTO A COMPANY WORTH OVER $1 TRILLION. THEY WILL HAVE INFINITE POWER OVER CONTENT AND MODERN TECHNOLOGY. APPLE HAS ALWAYS MAINTAINED A HUGE AMOUNT OF CASH, SO THE HIGH PRICES DO NOT MAKE THEM AFRAID. ANALYSTS ARE VERY CONFIDENT IN APPLE, ALTHOUGH THE SUCCESS OF THIS DISNEY DEAL IS HIGHER THAN 0%.
Investors increasingly expect Apple to seriously consider acquiring Disney, said analyst Steven Cahall and Leo Kulp. Apple is focusing a lot on the content, the size of the target is not a problem with Apple. Moreover, Disney helps Apple to diversify, avoiding too much reliance on hardware but still does not reduce the influence of the brand.
Hollywood would be immediately affected if the deal came true. In recent months, Disney is believed to be interested in acquiring Netflix. If Apple acquired Disney, the entertainment market would immediately change, impacting directly on Netflix by combining Apple’s stream technology with Disney’s diverse content library.
After this rumor, stock price of Apple and Disney rose immediately.
RBC Capital Markets, a global investment bank, has raised the expected price of Apple shares to $157 from $155 previously. The company believes that Apple will continue to be successful with the iPhone 8 and the acquisition of Disney if it is realized. Apple’s current share price is $141.
RBC estimates that Apple will report last quarter sales of $53.5 billion. Sales of the iPhone 7 and 7 Plus are still high, with the iPhone 7 Plus priced at over $120, which is expected to account for a larger percentage and increase Apple’s average selling price.
Apple’s share price has steadily grown since November 2016, after rumors of the iPhone 8 start to appear. Analysts are quite confident that the iPhone 8 with the OLED display will hit record sales and will continue to help Apple soaring in the second half of 2017.
In addition, rumors of Apple’s acquiring Disney for $200 billion also received much attention. RBC Bank has made a detailed plan for what will happen when Apple acquires Disney.
RBC calls this a technology and communications company never before. Apple could quickly switch to new portfolios, such as online TV and movies, on Apple’s available platforms.
Apple could distribute Disney content worldwide via its Apple TV or iTunes store. In the future, Apple can produce movies or TV content to provide to iOS users. Buying an iPhone and getting a free movie subscription for 6 or 12 months is not a bad idea.
More importantly, Apple may not be entirely dependent on the iPhone business. Since then, Apple has been able to grow its array of digital content and services.
Although the iPhone business segment is still flourishing, long-term growth is unlikely to be strong. Meanwhile, the array of services and digital content is more promising, as well as more sustainable in the hardware business.
But analysts say that Apple’s ability to buy Disney is very low. Anyway, the $200 billion is a huge number. So Apple can not easily make the final decision.