Rosenblatt: Apple could acquire Disney

From “Apple could buy Disney after pullback – Rosenblatt” posted Friday on SA News:

  • Rosenblatt analyst Bernie McTernan says Apple (NASDAQ:AAPL) could consider buying Disney (NYSE:DIS) after the 34% sell-off.
  • McTernan: “We believe those with long time horizons, like megacap companies with large cash balances and whose equity outperformed Disney over the last three weeks, like Apple, could take advantage of the volatility.”
  • The analyst says Disney+ could help boost Apple’s TV+ streaming service, which he sees as off to a slow start.
  • McTernan notes that Disney has a roughly $165B market cap, and Apple has about $107B of cash and securities.

My take: Someone should explain to McTernan that Apple makes small, strategic purchases. It has never spent more than $3 billion at one pop.

9 Comments

  1. Gregg Thurman said:
    Even if Apple were interested, Disney would not sell at these prices. It would be valued sans the coronavirus dip.

    This kind of analysis/research is typical of Rosenblatt, and it ain’t good.

    3
    March 13, 2020
  2. Jerry Doyle said:
    It pains me to read statements by market analysts who do not understand Apple.

    1
    March 13, 2020
  3. Aaron Belich said:
    And this guy is just as awful as their last Apple analyst. Best to get the word out…

    0
    March 13, 2020
  4. Fred Stein said:
    Isn’t Bernie Mac a comedian? Sadly he passed in 2008.

    Seriously, Apple will make a massive acquisition in a streaming and content company called Apple, which is now selling at a good discount.

    History will show Apple’s purchases of AAPL to be one of the biggest and best acquisitions of all time.

    3
    March 13, 2020
    • David Emery said:
      “History will show Apple’s purchases of AAPL to be one of the biggest and best acquisitions of all time.” Possibly followed by Berkshire Hathaway’s investment in AAPL. History will also be laughing at Carl Ikahn’s divesting of AAPL.

      0
      March 13, 2020
  5. David Emery said:
    What if Apple bought the content generation part of Disney, while spinning off the theme park business and maybe other parts? I’m not recommending this, but I think it’s worth thinking about as a thought experiment. It would give Apple a huge boost in producing new content!

    0
    March 13, 2020
  6. Kirk Burgess said:
    Basic rookie error by McTernan: Apple has $207 Billion cash on hand (and $108 Billion debt, coming to $99 Billion NET cash). As of end of Q1.

    0
    March 13, 2020
  7. Ken Cheng said:
    As I suspected, Rosenblatt didn’t replace their Apple analyst. McTernan is their Disney analyst.

    0
    March 13, 2020
  8. Ralph McDarmont said:
    Apple could buy many things. A few thousand Rosenblatts, for example. Or half of Canada. But ever since Steve the company has always kept its powder dry. Apple consolidates and strengthens with buybacks and prudent/strategic acquisitions. They have a knack for making good stuff too.

    0
    March 13, 2020

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