A research report suggests Apple could consider acquiring the Walt Disney Company in the wake of the coronavirus’ impact on the stock market.
With the coronavirus continuing to have an impact on the economy, stock markets are crashing and entertainment companies are seeing their shares take a hard hit. For example, The Walt Disney Company stock dropped below the $100 mark last week.
In a Friday research report, Rosenblatt Securities analyst Bernie McTernan suggested Apple could consider acquiring Disney amid the coronavirus’ hit on the markets:
“We believe those with long-time horizons, like mega-cap companies with large cash balances and whose equity outperformed Disney over the last three weeks, like Apple, could take advantage of the volatility.”
The Hollywood Reporter notes that McTernan added, ‘over the last three weeks Disney has lost about $85 billion or roughly one-third of its market cap.’ The report also highlighted the potential benefits for Apple should it acquire Disney:
“The upside from acquiring Disney would be securing their content/streaming strategy and potential synergies from adding the emerging Disney ecosystem to the iOS platform.”
Apple did not respond to The Hollywood Reporter’s request for comment.
McTernan added that Apple could boost its own streaming service with such an acquisition. “Disney+ could solve Apple’s content problem as we believe AppleTV+ is off to a relatively slow start,” he wrote.
“Apple’s stock on Friday jumped 12 percent to $277.97 amid a market rebound, while Disney shares rose 11.7 percent to $102.52, ” THR notes.
What would you think if this came to fruition? Should companies take advantage of the stock market crisis amid the coronavirus? Let us know your thoughts on the matter in the comments section below and stay tuned to Heroic Hollywood for the latest news both companies and the coronavirus impact in the entertainment industry as it develops.
Source: The Hollywood Reporter