Apple has created a war chest that is second to none. With over $200 billion in cash invested all over the planet, Wall Street has often made comments about what the company is going to eventually do with all this money.
In recent months, Wall Street rumblings have sent Disney’s stock up over 7.75%. Some of this increase could be due to rumors that Apple could be on the verge of buying the Entertainment giant for a large chunk of the company’s cash reserves. This isn’t a rumor that has been mentioned once or twice. In fact, this is a rumor that keeps popping up and peaking the interest of investors.
On the surface, one would have to wonder what these two mega giants have in common. The answer is content. They are both huge brand names that have derived a great deal of its success from the company’s content. While Apple sells the latest in technology, Disney uses this technology to provide the latest and greatest in entertainment.
When asked what he thinks of these rumors from Disney’s perspective, RBC analyst Steven Cahall had this to say: “Bulls think it portends well for a swan song exit via a sale to a giant like AAPL.”
The one part of a possible deal that doesn’t seem to fit is Disney’s ownership in the all-sports ESPN network. While both Apple and Disney are huge players in the international arena, ESPN is very much a U.S. domestic interest. To make this deal more fascinating, there are analysts who believe it would be in both company’s best interest to sell off the Broadcast Network as part of a mega-deal.
For now, all of this would seem to be nothing more than rumor and conjecture. With that being said, all eyes figure to be on both companies over the next few months.