With the stock market in free fall due to the coronavirus pandemic, many media companies are being walloped with their market cap value shrinking significantly – though some are faring far better than others.
Those disparities could allow companies to take advantage and gobble up the competition, including a suggestion made today by Rosenblatt Securities analyst Bernie McTernan to THR – that Apple could potentially acquire Disney which has sustained enough losses to put it within reach of tech giants.
Disney’s market capitalization sits at approximately $165 billion, while Apple has about $107 billion in cash and securities alone and a market cap of $1.06 trillion as of today:
“We believe those with long-time horizons, like mega-cap companies with large cash balances and whose equity outperformed Disney over the last three weeks, like Apple, could take advantage of the volatility. The upside from acquiring Disney would be securing their content/streaming strategy and potential synergies from adding the emerging Disney ecosystem to the iOS platform.”
Apple hasn’t been immune for the falls, it lost $372 billion on Monday due to stock falls – faring better than Microsoft which lost $405 billion and Amazon which lost $239 billion.
