Analyst Sees a More Magical Kingdom If Apple Acquires Disney

[Y2kTheNewOldies]

Analyst Sees a More Magical Kingdom If Apple Acquires Disney

Laura Martin calculates 15 upside for Apple shareholders

www.nexttv.com

This is in talks but not in reality at this time.

“Combining Apple’s distribution footprint of 1.25 billion unique customers with Disney’s 570 million consumers reached each year would drive 15% to 25% valuation upside for Apple shareholders,“ Martin said in a research note.

Apple and Disney have long worked together. Disney was one of the first companies to put its video content on Apple’s iPod and Mickey and Minnie Mouse are featured on Apple Watches. Disney also acquired Pixar, the animation studio led by Apple founder Steve Jobs.

Martin argues that here are many other ways that a combination of Apple’s products and technology would benefit from a closer connection to Disney’s content and fan base. In fact, in her report, Martin provides a list of the Top 10 ways Disney is additive to Apple shareholders.

Parts of this is based on how Comcast got NBC and how AT&T got WB at some points in their history is how this is being played.

Martin noted that Apple’s operating expenses were 33% lower than Disney’s in 2022, even though its revenues were nearly five times larger than Disney’s.

“Based on Comcast's acquisition of NBC and Discovery's acquisition of Scripps Networks, we believe Apple could conservatively cut out 15% of total combined costs, post-merger,“ Martin said. “In addition to eliminating duplicative positions, real estate, studio space, film & TV slates, etc. We believe combining these two companies would lower the customer acquisition costs for every consumer-facing product in the combined company portfolio, post-merger.”

Martin added that Disney has tons of ad space. It sells most of it, but also uses it to promote its own products and services. Apple’s marketing costs would plummet with access to Disney’s advertising assets, she said.

 

[AbrahamJSimpson]

That's not even "in talks." It's a fantasyland projection by an analyst.

 

[Don CT]

One it will never happen. 2 it will never be allowed to happen.