Taking over Disney's businesses, along with its higher debt and operating expenses, would throttle Apple's free cash flow and its ability to raise dividends or buy back shares. However, this also means that for the rest of history any time someone sees such a note and realizes it is worth more than face value he or she won't spend it . The Motley Fool owns shares of and recommends Apple and Walt Disney and recommends the following options: long January 2021 $60 calls. Apple is one of the few companies worldwide with the capital needed to acquire a company the size of Disney. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Theres a great scene in the originalMen in Blackwhere Tommy Lee Jones Kay is explaining the evolution of thought and discovery to Will Smiths Jay. Disney's popular CEO just stepped down, making this as good a time as any to make a move. Sure, Severance is a bit of a slow burn at first, and I was initially skeptical once I learned that the Apple TV+ series, created by Dan Erickson, was not an adaptation of the excellent 2018 Ling Ma novel.But this chilling sci-fi thriller really gets riveting by the end of the first season. This offered additional validation that Disney stock is a smart way to ensure long-term stability in any portfolio. A union of WarnerMedia and NBCUniversal, which has been repeatedly touted by Lightshed Partners, would be a powerful force in the space that might arise out of necessity. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. When the Walt Disney Company developed its first short films in 1923, no one could have guessed what an impact the tiny company would go on to have in popular culture. One way to look at these blue chip stocks is through the dividend lens. Early investors have made a fortune from Apple shares, but that doesnt mean its too late to buy in. Another caveat: Apple would need U.S. regulators to give it a "tax holiday" to repatriate offshore cash to fund an acquisition of . Both can play an integral role in building value and generating income in a diversified portfolio. A study of market caps for 13 major entertainment companies proves that a billion dollars isn't cool. As recently as 2015, the average for S&P 500 companies was 43.2 percent, and its approximately 36 percent today. Apple (AAPL) and Disney (DIS) together would have about $285 billion of revenue, Daryanani noted. However, when you start looking at prices, you may wonder if a Disney cruise is worth it. With Apple's current market cap of roughly $380 billion, it is worth more than ten times that! Apple's success with media distribution platforms from iTunes to App Store stems from the fact that it doesn't play favorites among content creators and developers. Press question mark to learn the rest of the keyboard shortcuts Amazon isn't far. Fifteen hundred years ago, everybody knew that the earth was the center of the universe. Not worth the cost anymore. In recent months, Apples market cap has exceeded $1.39 trillion. Apple is now trading around $150, up more than 240% in the past five years, and its currently the . 4 Social Security Changes Joe Biden Wants to Make: Is 2023 the Year They Become Reality? Save my name, email, and website in this browser for the next time I comment. However, based on share price and the number of outstanding shares for each company (market cap), we see a further divergence. At least it has been for me. It can be more money than other cruise lines, but can also be worth it. If you liked Max Pass, you'll like Disney Genie Plus. In India, Netflix recently cut the price of its basic plan from $6.60 to $2.60 a month. Uber falls pretty far from the tree with $62 billion. But its also fair to say that Apple TV+ appears to be less of a loss leader and more of a non-factor after 16 months. Disney Celebrate the timeless legacy of Disney with this unique collection of playlists, radio stations, and soundtracks. Iger, who was Disney's CEO from 2005 to 2020, replaced Chapek late Sunday in a surprise announcement, beginning a two-year term. When a bill is in mint condition, it is worth more than the same bill in poor condition. It would make more sense for Apple to simply secure a partnership with Disney -- similar to the one Disney previously forged with Netflix -- to expand its streaming library instead. As of 2022, the company has over 77,800 employees, which is a significant increase from the past year. We expect Netflix and Disney+ to claim two spots, and its been an open question of who is going to be the third. Meta Platforms is the parent company of Facebook, WhatsApp, Instagram, Oculus, Giphy, and more. Disney may have more room for growth from an income perspective, while Apple pays slightly more in the short-term. Thats just a taste of the companys collection. Little Americais nothing short of splendid,The Morning Showis a star-studded big-name attraction andTed Lassowas the summer sensation that fans cant get enough of. Felt. The returning CEO, Bob Iger, has confirmed that Apple isn't buying or merging with Disney. By any measure, Disney is in an ideal place to corner the entertainment market for years to come. It's not going to get ESPN viewers to pay for cloud storage of games. Amazon was founded by Jeff Bezos in 1994. That idea might sound wild, but it's been floated ever since Disney bought Pixar -- then led by Steve Jobs -- in2006. Disney currently has an enterprise value of $254 billion. It could then leverage Disneys existing direct-to-consumer footprint (more than 150 million subscribers worldwide) and global reach and vice versa. The Motley Fool owns shares of and recommends Apple, Netflix, and Walt Disney and recommends the following options: long January 2021 $60 calls. Microsoft is one of the largest technology corporations in the world. Leo Sun owns shares of Apple and Walt Disney. Today, Apple stock remains a highly-recommended component of any well-diversified portfolio. Disney won't go cheap. Forget the brand value though, which stock is best: Apple vs Disney? As of 2022, the company has over 22,400 employees across 57 locations, which is almost a 20% increase from 2021. There was a recent graph on r/dataisbeautiful showing that despite making a very small percentage of all phones sold, they make 80% of all the profits in that sector. Theres strategic gold to be mined here. They own several companies including Dairy Queen, Helzberg Diamonds, GEICO, Fruit of the Loom, Shaw Industries, and BNSF Railway, among many others. Part-time freelancer, part-time procrastinator. At its peak just four months ago, Disney was commanding $335 billion in enterprise value. It spent $61 billion to acquire Fox [after selling off the Fox regional sports networks to Sinclair Broadcast Group for $10 billion as part of an agreement with the Department of Justice]just to be competitive with Netflix and thats withthe whole Disney library behind them. Of course, Apple isnt a media company and is therefore not operating in the same playing field or chasing the same goals as a Disney or Netflix. The Basic plan costs $9.99/month, which is cheaper than Disney's ad-free tier will be, but it only lets you watch 480p resolution videos on a single screen at a time. However, what investors may not realize is that Apple doesnt rely on iPhone sales as heavily as it once did. Walt Disney Imagineering. For example, Disney recently launched its signature streaming service, Disney+, in an effort to compete with Netflix. Saudi Aramco aka the Saudi Arabian Oil Company is a natural gas company thats based in Dhahran, Saudi Arabia. Apple also operates at higher margins than Disney, which struggled with contracting margins in recent years as cord-cutters gutted its higher-margin media business: Therefore, acquiring Disney would significantly erode Apple's long-term margins. The kind of money that Disney spends on its streaming content is worth noting: $1 billion in 2019, and anticipates that that number would ascend to $2.5 billion by the year 2024. Disney Favorites Disney Hits Disney Disney Sing-Alongs Disney Disney Classics Including Apple TV+ into the companys Apple One service bundle provides added value. Learn More. Invest better with The Motley Fool. As of 2022, they have over 66,800 employees worldwide. It will also likely need to take on additional debt to close the deal, which would boost its current liabilities of $102.2 billion. This post may contain affiliate links or links from our sponsors. As of 2022, there are over 655 retail stores and service centers around the world, many of which are in the United States. There are companies that are investing millions into their advertising efforts, and paying 6-figure salaries to their top employees. When Financhill publishes its #1 stock, listen up. Apple Music. Over the course of the past ten-plus years, Apple has created a nice little spot for itself as a premier mover and shaker in the tech industry. It's the queen on the chess board. But with Apple TV+ being as little used as it is, and with the core businesses of both companies being so vastly different, an Apple-Disney merger may not be quite as impossible as you think. But actually it's even more pointed than that. A combined Apple-Disney would be worth more than $1 trillion dollars. You've probably heard of most, if not all, of these locations. Apple, on the other hand, is worth a staggering $1.97 trillion with occasional breaks above the $2 trillion mark. 1 Warren Buffett ETF I'm Stocking Up On Before the End of 2022, 2 Stocks Down 19% to 51% to Buy Right Now. The bottom line, Jacobovitz said, is that the large sizes of the two companies wouldnt automatically mean it wouldnt be approved. Cue that Jim Carrey So youre telling me theres a chance meme. Apart from its movies, Disney also has lots of other sources of income that helps to increase the net worth of the company effectively. Attendees also heard more about the exclusive Star . NVIDIA - 596.8 Billion 9. Meanwhile, Disney is "only" valued at $354 billion. For Apple, the payout ratio is 27 percent, which doesnt leave a lot of room for growth. But we're. Two years later, as Apple was flirting with bankruptcy, Microsoft became the first U.S. company to hit $500 billion.. Apple - which is perhaps the most popular and lucrative computer company in the world at the moment - may be considering an acquisition of Disney to the tune of over $200 billion dollars. Assuming a 40% premium for Disney, the deal would carry a hefty $237 billion price tag. The bottom line is that in a competition between Disney and Apple, there is no clear winner. Apple isn't the only American company that towers over its British . The last that wed checked, there were more than one billion of these devices active worldwide. With Disney stock hitting a five-year low on Wednesday, it's easy to see why Apple buying the media giant while it's out of favor makes sense. Table of Contents Top 10 Most Valuable Companies in the World in 2022 10. From enchanted forests to galaxies far, far away, discover the magic of all your Disney favorites, including Star Wars, Marvel, Pixar, and many more! However, 98.5% of the companys stake is held by the local government. Walt Disney Studios. That said, this service really should be cheaper. Apple wouldnt want Comcast ($262 billion) since the majority of its business is cable and internet as opposed to studio entertainment and AT&T ($212 billion) would leave them in the unenviable position of both making phones and selling phone services. The idea of Apple buying Disney isn't a new one, and it's something that has come up time and again. Disney World is always changing and expanding, and while the price of admission can feel expensive, the abundance of entertainment, rides, and attractions is worth the cost. Apple usually buys smaller companies, and it would be odd for the tech giant to abruptly gobble up one of the largest media companies in the world. However, Apple would also be taking on Disney's rising content costs. Access to Exclusive Experiences and Locations. A floating hotel, full of flashy activities, delicious foods, and impeccable service can be an appealing vacation option. Apple is plowing billions of dollars into content in a bid to compete with more established platforms like Netflix, Disney, and Amazon. Their goal was to develop a new generation of computers that were small enough and easy enough to use that they could be added to any home or office. Apple would buy The Walt Disney Company for $275 billion on January 9, 2023. Movie Math is an armchair analysis of Hollywoods strategies for big new releases. Found."-technique. Apple TV+, on its current course, will never reach that level.. November 21, 2022 Chris Preston Apple (AAPL) and Amazon (AMZN), two of Wall Street's true heavyweights, have long been mainstays of many investors' portfolios. For new users, this is the #1 reason why many users have not subscribed to Apple's new streaming platform. "Felt: Explain that you, too, once felt that way in the past.". . Spotify also offers a free ad-supported plan, which makes it an attractive competitor. Jim Henson Studios. More importantly, Disney is positioning itself as a leader in the massive streaming market through smart entertainment acquisitions. Apple calls this the "Feel. I've had increasingly bad experiences including numerous run-ins with rude cast members. For 1080p HD video and two devices at once, Netflix costs $15.49/month. Be sure to check out the options on display next time you are visiting Disney. Mickey Mouse made his debut in 1928, and Disney released its first full length animated feature, Snow White, in 1937. The real question to ask is if an acquisition of The Walt Disney Company by Apple is even legally possible. NVIDIA is a California-based company that specializes in artificial intelligence hardware and software. Steve Jobs and Steve Wozniak, the visionaries behind Apple, launched their enterprise in Jobs garage. If Apple wants cheap labor, they can set up a new factory in Mexico. By any measure, that is an extraordinary achievement, but it is particularly impressive given the companys roots. With $38.31 billion worth of long-term debt on its balance sheet and a severe cash-flow problem in the near-term, Disney has become ripe for the picking. Apple could create a movie theater chain that reflects the clean, streamlined design of their stores where consumers can mix and match Apple subscriptions that blend the big and small screen. sunsetting of the Paramount Consent Decrees. Apple has spent the past decade cranking out a net margin above 20%. McTernan claims that Apple could significantly strengthen its Apple TV+ business by buying Disney. Apple ended last quarter with$107.1 billion in cash, cash equivalents, and marketable securities. Debuting on Nov. 1 at $4.99 a month, (and, in an aggressive leveraging of its ecosystem, free for a year if you buy an Apple device) Apple TV+ . In fact, the iPhone is the most used smartphone in the world. In 2021, they made over $469 billion, making them the largest Internet company by revenue in the world. And this isn't. Price as of December 9, 2022, 4:00 p.m. After all, the #1 stock is the cream of the crop, even when markets crash. In fact, its value is higher than every major major automakers all together. Some of their products include graphic processing units (GPUs), central processing units (CPU), data processing units, tablet computers, laptops, chipsets, and drivers. Yet their libraries are all much too small and the companies not powerful enough to create the catalog and market demand to transform Apple TV+ into a competitive service. A logical buyout candidate isDisney (DIS 0.90%), and earlier this week, Rosenblatt analyst Bernie McTernan became the latest Wall street pro to float that notion. At one point, they also acquired large holdings of American Airlines, United Airlines, and other US airlines, however, they were sold in the wake of the COVID-19 pandemic. The Steves started working on the project in 1976, and by 1977, they were selling their machines to individuals and businesses at an astonishing rate. Disney's (DIS 0.90%) stock plunged more than 30% over the past month as the novel coronavirus crisis forced it to shutter its theme parks and postpone its new movie releases. Not only that, but they also have subsidiaries in the US, Russia, Japan, China, Great Britain, and several other countries. Taiwan Semiconductor - 627.55 Billion 8. Aside from vehicles, they also make solar roof tiles, solar panels, and batteries, all of which provide sustainable energy. On the other hand, Disney is currently paying out just 19 percent of its earnings, which indicates the increased dividend yields may continue on their current trend. 4 Social Security Changes Joe Biden Wants to Make: Is 2023 the Year They Become Reality? As of 2022, Amazon operates in over a dozen different countries including the United States, Canada, Australia, the United Kingdom, France, Germany, Japan, and Ireland. The company started out as an online marketplace that sold books but has since expanded to sell almost everything else from video games to apparel. Disney Plus vs Netflix: content. "Found: Tell the customer how you found that your concern was actually incorrect.". At one point, they even hit the $3 trillion mark (they were the first publicly traded US company to achieve such a feat). For the second year in a row, the Cupertino-based company has been named the most valuable brand in the world, and is now worth $119 billion (80 billion). Adam Scott plays Mark, an office worker who has voluntarily undergone a procedure that completely . In contrast, Spotify charges $9.99 for individuals, $12.99 for two members, and $15.99 for families. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Learn More. The tech giant boasts a market cap of more than $2 trillion, making it the most valuable company in human history. Buying $1000 In DIS: If an investor had bought $1000 of DIS stock 20 years ago, it would be worth $5,590.01 today based on a price of $92.35 for DIS at the time of writing. There are going to be a lot of buyouts at the other end of this COVID-19 coronavirus pandemic. Its signature show, The Morning Show, starring Jennifer Aniston, Reese Witherspoon and Steve Carell, has been both panned and praised, though it has certainly sparked a lot of conversation, which is good for Apple. Now, if they can afford that, you have to ask yourself, how much money do these companies make? Join Nearly 1 Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. ET, 1 Green Flag for Apple Stock in 2022, and 1 Red Flag, Why Apple Stock Eked Out a Market Beat Today, 3 No-Brainer Stocks to Buy Amid the Tech Sell-Off, Why Investors Should Love Apple's Dividend, Why Apple, Salesforce, and Qualcomm Stocks Are Volatile Today. By market cap, or value of the company on the stock market, Apple and Microsoft have well surpassed $2 trillion, whereas Google parent Alphabet follows closely at $1.8 trillion. It has nearly $100 billion more in long-term marketable securities. Meta Platforms (Formerly Facebook, Inc.) 627.69 Billion, What Happened to Kenichi Ebina What Hes Doing Now In 2022, Table 87 Frozen After Shark Tank 2022 Update, Apple to Sell Front Door Look That Can be Unlocked With Apple Watch or iPhone, Bed Bath & Beyond Will Be Closing 150 of Its Stores, Celine Dion Reveals Rare Neurological Disorder Diagnosis, COVID-19 Surge in LA County as Cases Double, Man Dies In Apparent Suicide After Jumping From Disneyland Parking Structure, Cruise Ship Passenger Rescued After Spending 20 Hours In the Ocean, Kanye West Slammed for Praising Hitler in Antisemitic Interview. Access to all of these are extremely limited. Disney, it hasn't gone unnoticed, is always close by when a pod or pad falls from Apple. Apple Hailee Steinfeld plays the poet Emily Dickinson as a high-spirited young woman chafing at the limits of 19th century gender roles. It's worth more than any TV network, even worth more than cable giants like Comcast (NASDAQ: CMCSA) and AT&T (NYSE: T ). As of December 2022, the company has a market cap of $2.595 trillion. According to RBC Capital Markets, an Apple-Disney union would create a company worth more than $1 trillion, with "almost . Folks buying an iPhone or an iPad are thrust into the iOS platform. But advertising revenue helps support our journalism. It would be interesting to see Apple merge with Disney, but I doubt it will ever happen. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. We live by the economic idea that there are always three dominant firms within a marketplace, David Offenberg, Associate Professor of Entertainment Finance in LMUs College of Business Administration, told Observer. The Motley Fool has a disclosure policy. One wouldn't let me use a water fountain that was behind a roped-off area . Apple would likewise have to adjust the financial plans of Disney's gigantic film and media habitat, just as the extension expenses of its amusement parks and resorts. I've found that purchasing Disney Genie Plus at Disneyland/Disney California Adventure has been the best use of Genie Plus. Overseas, governments are much tougher than the U.S. when it comes to antitrust matters, so theres no guarantee the deal would be approved worldwide. As of 2022, Apple's library of content pales in comparison to what you get with Netflix, Amazon, or Disney. In 2021 alone, they sold more than 936,000 cars, which is almost a 90% increase from 2020. Similar to Amazon, Apple doesnt necessarily need to win the streaming wars as long as its SVOD platform drives consumers to its core business. Now, here's a just a small sample of the apples you might be able to spot on your next trip: This Goofy apple has a lot of details, including a marshmallow hat and ears . Their goal was to develop a new generation of computers that were small enough and easy enough to use that they could be added to any home or office. Sure, maybe it sounds that way today. There Is Already a Clear Winner in the Disney vs. Apple Streaming Service War. Bob Iger and his (short-lived) replacement as Disney CEO, Bob Chapek Apple doesn't buy firms on a whim We've all spent more on something than we should, just because we wanted it. In some ways, Netflix has left Disney in its rear-view mirror. They also both give a free 7 day trial. It became the first publicly traded company to ever reach the figure on Monday, when its stock . The FTSE 100 represents the U.K.'s 100 largest companies. The topic du jour: the streaming wars, and which companies will be left once a crowded field thins. They also produce hardware products including the Microsoft Surface, Xbox video game console, HoloLens smart glasses, Microsoft Band smart bands, and many others. Apples dividend yield is closer to 1.5 percent, and Disney is slightly lower at 1.3 percent. 1,000 times over yes. Disney shares skyrocketed in the first day of trading after. That made late Pixar Co-founder Steve Jobs into Disney's largest shareholder and a member of its board. Google followed at $107 billion (66.2 . And for 4K video with up to four devices streaming at once, Netflix costs a whopping $19.99/month. As of 2020, they have over 56,000 employees. Apple buying Disney is a nice thought, but let's go over some of the reasons the pairing isn't going to happen. The achievement is largely symbolic, but it does. Apple is bigger from a market value perspective at $1T (as of 3/21/2020) while Disney's value s $155B Disney is bigger in number of employees at 223,000 compared to Apple's 137,000 (according to Wikipedia) Apple is bigger in terms of revenue and profits ($260B and $55B respectively) versus Disney ($70B revenue and $11B profits) I hope this helps Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. In the past five years, Apple increased dividends by an average annual rate of 10.4 percent. They just equal $964 billion. However, Disney leaders continue to aggressively grow the business. Amazon and YouTube are also in the same price range. Click the AdBlock Plus button on your browser and select Disable on Observer.com. This breezy, knowing comedy has fun with both the details. Cost basis and return based on previous market day close. More than 60% of its total customer base is operating on a free trial, and 29% of those on a trial do not intend to re-up their subscription when the trial ends, according to a survey from analysts at MoffetNathanson. So both offer extremely good value for money. Rick Munarriz owns shares of Apple and Walt Disney. In 1995, Ford became the first U.S. company to reach $100 billion in value. Making the world smarter, happier, and richer. Reviewed May 13, 2016 via mobile. Apple hasnt spent enough on Apple TV+ to be competitive in this space and the results are exactly what youd expect., Offenberg added: Apple is going to have to spend at least $100 billion to compete, which means they have to buy a major studio.. The reduced price is largely down to the small content library Disney have so far. I would say that either the Federal Trade Commission or Department of Justice would look at three main areas: entertainment content, sports programming and theatrical distribution, Jeffrey Jacobovitz, Partner at Arnall Golden Gregory LLP, told Observer. That year, Apple held its IPO, and investors have never looked back. Apple is worth $1.9 Trillion whereas Disney is valued at about $245 Billion. Apple would reduce the dependence of its business on iPhone sales, accounting more than 60% of all incomes. Contact us: [emailprotected]. They also operate in Canada, the United Kingdom Japan, Hong Kong, Switzerland, France, Italy, Australia, and South Korea, among many other countries. The Best Emmy Reactions From the 2020 Nominees -- Betty Gilpin, Matthew Macfadyen, and More Netflix Makes Emmy Nomination History, but HBO Remains the Big Winner Awards titans like HBO and. We live in a huge world that is highly influenced by huge companies. Disney has an estimated net worth of around $140 billion as of August 2022. Apple Should Ride to the Rescue Not many U.S. businesses are in a position to buy right now, but those who can are likely putting a target on Disney's back. These two companies offer the complete package for their customers. The takeaway is that we must be open to truths and realities that challenge our understandings. Alphabet is a conglomerate holding company based in Mountain View, California. According to RBC analyst reports: Recently . Disney's business should recover quickly after the crisis ends, but Rosenblatt analyst Bernie McTernan recently suggested thatApple (AAPL -0.34%) should swoop in and buy the House of Mouse before its stock recovers. Neither is on par with the average dividend yield delivered by S&P 500 peers, which comes in at approximately 1.98 percent. None of this is necessarily a reflection on the quality of Apple TV+s library. *Average returns of all recommendations since inception. Review of Walt Disney World Resort. We get it: you like to have control of your own internet experience. For decades, tech titans such as IBM, Microsoft, Intel, and Cisco have shared that "world's most valuable" leaderboard with leaders from other sectors of the economy, like retail, health . Marvel, Lucasfilm, Pixar, and recently acquired Fox assets (to say nothing about Disney's own iconic properties) helped make Disney+ an overnight sensation with nearly 30 million subscribers within its first three months of availability. Disney bought the Steve Jobs-run Pixar in 2006 for $7.4 billion, which put the animation studio's CEO on the entertainment company's 10-member board. Of course, Jobs was also co-founder of a little computer startup you might have heard of. And thats exactly what I will reveal to you today. 1 Founded in 1923 as the Disney Brothers Cartoon Studio by brothers. Most analysts base their dividend growth predictions on a companys payout ratio a snapshot of the percentage of earnings paid as dividends. To compete against such a Goliath, the entertainment media space would be faced with radical decisions. ET, 1 Green Flag for Apple Stock in 2022, and 1 Red Flag, Why Apple Stock Eked Out a Market Beat Today, 3 No-Brainer Stocks to Buy Amid the Tech Sell-Off, Why Investors Should Love Apple's Dividend, Why Apple, Salesforce, and Qualcomm Stocks Are Volatile Today. Not only that, but they have a market share of 91.9% in the search engine segment worldwide. With the sunsetting of the Paramount Consent Decrees, Disney could begin amassing movie theaters to provide a multifaceted experience that combines ESPN and live sports. Uniting Disney+, ESPN+, Hulu, and Apple TV+ into a single platform would significantly strengthen Apple's Services ecosystem, which also includes other prisoner-taking services like the App Store, Apple Music, Apple Pay, and Apple Arcade. Its not in the companys DNA to hunt for lavish outside assets valued in the 12-figure stratosphere like Disney. That means plenty of potential for Apple shareholders. Meanwhile, Amazon's . No one is as flush with cash asApple (AAPL -0.34%). And it's true that during those three years, Iger said there had been a point where a merger. Apple stock has a forward price-earnings ratio of 30 - well above where it sat at 17.3 in September 2019 and its trailing P/E of 34.6 is up from 19 over the last year. But were getting ahead of ourselves. On the day the deal was announced, Apple was trading at about $3 a share and Disney at $25. It's a cheap monthly cost as far as streaming subscriptions go but with the lightweight content offering, it's hard to imagine Apple charging anything more. What does this do to widen Apple's services revenue? Netflix for now is worth more than Disney after the streaming company's shares hit an all-time high Wednesday.. Netflix's stock, extending its three-day rally, closed up 3.2%, to $426. Both companies have globally admired brands, rich ecosystems, and the ability to get away with premium-priced products and services. With thousands of favorites from Star Wars to Marvel to Pixar available ad-free, Disney Plus is well worth $8 per month. Apple would be driving the development of services. Marvel/Disney+. Disney's ecosystem takes a different path into your pocket, but it's essentially about optimizing the value of a hit franchise. To put Apple in perspective for valuation on a per capita basis, Apple's $710 billion market cap is the equivalent of more than $2,200 per person in the United States. The cost of purchasing Apple Music is $9.99/month or $14.99/month for a Family Sharing plan. Both have excellent prospects for building value in the short-term and the long-term. Users squeeze in their desired content and then cancel and move on. The next logical question, of course, is whether this rate of growth will continue. It's doubtful that Disney's shareholders will approve a buyout at its current price. 1 Warren Buffett ETF I'm Stocking Up On Before the End of 2022, 2 Stocks Down 19% to 51% to Buy Right Now. If you have to choose, its simply a matter of personal preference and a quick look at your financial goals. In my opinion, Disney World is still worth the money because of the impressive rides, shows, shops, and eateries available inside the park. Its not as if Apple doesnt have the cash to make this move with ease. The candy apple is a fabulous treat to try the next time you find yourself at Walt Disney World. Aside from Microsoft Windows, their line of operating systems, theyre also known for the Microsoft Office suite, which is used by more than a billion people worldwide. Join Nearly 1 Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. The Motley Fool owns shares of and recommends Apple and Walt Disney and recommends the following options: long January 2021 $60 calls on Walt Disney and short April 2020 $135 calls on Walt Disney. Owned by the Saudi government, they have the second-largest proven crude oil reserves in the world (over 270 billion barrels). All those moving parts would complicate Apple's core business, which mainly focuses on selling hardware and locking users into various subscriptions. . Disney is currently racking up losses with its streaming services (Disney+, ESPN+, and Hulu) to lock in viewers, and its integration of Fox's media assets and renovations at its theme parks are exacerbating that pressure. In general, wearable tech spending is expected to grow by 55 percent through 2021. Invest better with The Motley Fool. If only they had 2 or 300 billion dollars they could build a factory in the u.s. Without further ado, here are the top 10 most valuable companies in 2022, ranked by their estimated brand value. worth about $1,300, much more than a standard Apple Watch. This fall, there will be two more high-profile . The tech giant is armed with $107.2 billion in cash and short-term marketable securities. But Apple TV+ lacks the library size to keep viewers on the hook for longer than few weeks at a time. To make sense of the figure, one could combine AMD, Intel, Nvidia, Netflix, Disney, Walmart and Bitcoin, and Apple is still worth more. The only studio left thats big enough to push them toward streaming domination is Disney, which just so happens to match Apples family friendly brand and public morals. Berkshire Hathaway is a conglomerate holding company thats based in Omaha, Nebraska. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. From those first personal computers to the iPod, iPhone, and iPad, Apple products led the digital revolution. Content is king, but there's a reason the queen is the chess piece with the power to go anywhere she wants. Apple would naturally offer a cash-and-stock deal, but that money could go toward buying a dozen tech and tech-services providers that would slide into Apple's existing ecosystem more easily. If Apple investors balk, Disney could consider spinning off assets like ESPN and theme parks to make the deal more palatable. (Even so, Apples soaring 2020 profits have been more attributed to the pandemic, and not to its fledgling streamer. Assuming a 50% acquisition premium, which would value the stock in the low $140s, Apple would need to fork over nearly $400 billion to close the deal. Steve Jobs was famously on the Disney board for years, with the two companies having what could perhaps be described as a special relationship. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Apples recent extension of its free trial offers suggests that Apple TV+s paid membership numbers remain insufficient. It's going to have the pick of the litter when it's time to go shopping for strays later this year. You know. The author has no position in any of the stocks mentioned. One company is going to have to work a lot harder to tip the scales. This is why there is rampant speculation but more to the point "real news" that Apple is looking to buy Disney for a reported $237 billion. As of December 2022, they closed at over $500,000 a share. Walt Disney ( DIS) has grown into a household name in family entertainment and a leading international media conglomerate. Meta Platforms (Formerly. They also include consumer products and the Disney channel that worth more than $3 billion. Despite Disney's share price plummeting since January, the company is still. Merging the two services could create a more formidable rival for Netflix (NFLX 3.14%), which ended last quarter with167 million paid subscribers worldwide. For example, Texas Instruments has a dividend payout ratio of 70.1 percent, and Maxim Integrated Products is at 79 percent. 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