Analyst weighs in on Apple-Disney merger rumor, says the move would be logical
RBC Capital Markets analyst, Armit Daryanani, has weighed in on the rumor about Apple's plan to buy Disney, saying that it would be a logical move by the iPhone maker - if the claims would turn out to be true.
Dayranani, on his written note to clients on Thursday, pointed out that Apple has been unsuccessful with its attempt to recreate the success it had with iTunes. And the Apple-Disney merger could help solve the problem by creating a video version of the music platform, Phone Arena reported.
"We have seen increased discussions among investors regarding 'How could AAPL gain scale in media/content and what could it do with potential cash repatriation?" the analyst said on the note, CNBC relayed. "We see a confluence of events that make an acquisition of DIS a 'greater than 0 percent' probability event (while odds are low). AAPL's focus on services and its inability (so far) to replicate its music/iTunes strategy into content/media make acquiring DIS logical in our view."
The analyst went on to list a few possible reasons why Apple may consider pushing the merger with Disney. One of the reasons on the list suggests it could accelerate the Cupertino-based tech giant's push into services and content if the deal ever does happen.
It was also noted on the list that Apple could acquire brands owned by Disney with the merger without diluting the tech giant's iconic presence and customer relationships. Dayranani pointed out that the Mickey Mouse firm could help strengthen the brand value.
Apple, according to Dayranani, is purportedly looking at larger deals with services as the main focus. Despite that, there hasn't been any official word coming from the tech giant regarding the merger with Disney. And it this point, the possibility of it happening is slim. With that being said, it's highly advisable to take the circulating rumor with a pinch of salt.
