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Barron's: Apple Could Buy Disney

by , 4:15 PM EST, February 27th, 2006

Barron's over the weekend speculated (subscription required) that Apple could make a bid to buy Disney, now that CEO Steve Jobs is its largest shareholder and sits on its Board of Directors. The financial publication quoted analyst Christopher Whalen as saying: "I think he has an open option."

Mr. Whalen, who is managing director of Institutional Risk Analytics, continued: "Disney is badly undervalued right now. Jobs might get an opportunity to take it out." Greg Morcroft, writing about the news for MarketWatch, added: "Whalen argues that Jobs' unique familiarity with both the content and technolgy sides of Hollywood make the case for a bid more compelling."

The Orlando Business Journal noted that Disney's stock was up and Apple's was down in early Monday trading, in light of the speculation. Apple's shares rebounded before ending the day at US$70.99, down 0.66%. Disney closed trading at $28.39, up 1.47%. Its stock never dipped into negative territory.

Observer Comments

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Close Name:Rainy Day Posts: 607 Joined: 07 Jun 2005
Mon Feb 27, 2006 5:37 pm Subject: Think of the possibilities:

An audio Disneyland guidebook/podcast you can download at the front gate, and an iPod sales kiosk for those poor souls unfortunate enough not to have one yet?

Think Differently


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View Name:Guest
Mon Feb 27, 2006 6:47 pm Subject: Buyout?
View Name:Guest
Mon Feb 27, 2006 6:53 pm Subject: RE: Buyout?
View Name:Guest
Mon Feb 27, 2006 6:57 pm Subject: 4 billion...
View Name:Guest
Mon Feb 27, 2006 9:00 pm Subject: Not in a million years.
Close Name:deasys Posts: 259 Joined: 08 Apr 2003
Tue Feb 28, 2006 1:38 am Subject:

Quote
Guest wrote:
Apple is in no financial position to buy out such a humungous entity like the Walt Disney Company.


Apple is larger than Disney. Go check the market capitalizations of the two companies (AAPL, DIS).


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Close Name:deasys Posts: 259 Joined: 08 Apr 2003
Tue Feb 28, 2006 1:39 am Subject:

Quote
Guest wrote:
Apple has at least $4 billion in cash on its books.


Apple has at least $8.5 billion in cash on its books.


 Reply | Quote
Close Name:Tiger Posts: 937 Joined: 17 Jun 2003
Tue Feb 28, 2006 11:45 am Subject: And

Zero debt. Imagine what you could buy with $8.5 billion in cash as collateral and zero debt.

Disney was run way down by Eisner and is a very viable target for Apple, if they want them. It's still a big if.

The World of Tomorrow display would likely change drastically!


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