Would Apple Buy Disney?
Rumors spread flood-like through the Internet over the weekend that Apple Computer might make an attempt to acquire the Walt Disney Co. The rumors were touched off by an item in Barron's, the Dow Jones weekly magazine, by Mark Veverka, its Silicon Valley-based correspondent. It noted that Apple now boasts a stock-market value of more than $60 billion -- $10 billion more than Disney's, and that when Disney completes its acquisition of Pixar, Steve Jobs, who heads both Pixar and Apple, will become Disney's largest shareholder, with four times the stake of Michael Eisner and seven times that of Roy Disney. (Veverka incorrectly identifies Disney as the brother of Walt; he is Walt's nephew.) The article quotes Institutional Risk Analytics analyst Christopher Whalen as saying that it would be "an open option" for Jobs to make a run at Disney, adding, "Disney is badly undervalued right now. Jobs might get an opportunity to take it out." Moreover, several analysts forecast that Apple will soon develop a movie downloading service for its video iPods, which are expected to sport larger screens in their next evolution. "From an intellectual property standpoint, [an Apple-Disney merger] would be a match made in heaven," Washington D.C. intellectual-property attorney Alan Fisch said in the Barron's article.
Rumors spread flood-like through the Internet over the weekend that Apple Computer might make an attempt to acquire the Walt Disney Co. The rumors were touched off by an item in Barron's, the Dow Jones weekly magazine, by Mark Veverka, its Silicon Valley-based correspondent. It noted that Apple now boasts a stock-market value of more than $60 billion -- $10 billion more than Disney's, and that when Disney completes its acquisition of Pixar, Steve Jobs, who heads both Pixar and Apple, will become Disney's largest shareholder, with four times the stake of Michael Eisner and seven times that of Roy Disney. (Veverka incorrectly identifies Disney as the brother of Walt; he is Walt's nephew.) The article quotes Institutional Risk Analytics analyst Christopher Whalen as saying that it would be "an open option" for Jobs to make a run at Disney, adding, "Disney is badly undervalued right now. Jobs might get an opportunity to take it out." Moreover, several analysts forecast that Apple will soon develop a movie downloading service for its video iPods, which are expected to sport larger screens in their next evolution. "From an intellectual property standpoint, [an Apple-Disney merger] would be a match made in heaven," Washington D.C. intellectual-property attorney Alan Fisch said in the Barron's article.
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