- RBC Capital says talk is picking up over Apple (NASDAQ:AAPL) making a run at acquiring Disney (NYSE:DIS), especially if $230B in offshore cash can be repatriated painlessly.
- The logic behind the deal is obviously the enormous amount of quality content owned by Disney
- "There are plenty of factors to consider, but such a deal would create a tech/media juggernaut like no other and instantly scale [Apple's] services, content and media portfolio, which would make the case for a higher valuation," writes RBC's Amit Daryanani.
- "The resultant company would be massive, with enough cash and balance sheet capacity to change the nature of the hardware, service, and content industries," he adds.
- It's not the first time the dreamy AAPL-DIS merger idea has been thrown out, but this go-around has RBC saying a deal could be 18% accretive to Apple earnings, although the firms thinks the odds of a deal finalizing are still low.
- DIS +0.05% premarket to $113.10. AAPL -0.14% to $141.60.
Original article