Apple to Buy Disney?

[blackcauldron85]

Will corporations or individual people buy them? And is there a benefit to the buyer? Besides just supporting Disney? Like they'll get 1.5 times their $ back?

[Sotiris]

I believe anyone can buy them, including other corporations. Investors are paid a pre-determined number of interest payments until the bonds expire; that's when the payments end and the original investment is returned. How much profit they make depends on the interest rate which can either be fixed or fluctuating. Corporate bonds are generally considered a safe investment, especially from big companies like Disney. Are you planning on buying some, Amy?

[blackcauldron85]

^ Are they buying shares of Disney stock? And noooo! I own one share of Disney stock I bought in '04 or '05 maybe for about $30 and I have a 401(k) but that's as far as I go! I just know this is a big thing but I'm trying to understand it. (And thanks for trying to help me understand!!!)

[Sotiris]

Stocks and bonds are not the same thing. With stocks you own a share of a business whereas with bonds you're essentially just lending them money. Stocks are riskier because stock value is volatile and you can easily lose money whereas with bonds, even in the case of bankruptcy, you rarely do. The drawback is that there's less profit to be made with bonds as they're usually on a fixed interest rate.

[Sotiris]

Things are not looking good for Disney. Their stock keeps getting downgraded.

Disney Stock Sinks Over 9% as Wall Street Gives Away Trump Gains
https://www.thewrap.com/disney-stock-si ... ump-gains/

Disney Stock Slips on Downgrades From Credit Suisse, UB
https://www.thewrap.com/disney-stock-sl ... uisse-ubs/

Disney Downgraded by S&P Over Concerns Parks Business Will Be Slow to Recover
https://www.thewrap.com/disney-s-p-downgraded/

Disney Stock Price Target Lowered by Morgan Stanley Analyst
https://www.hollywoodreporter.com/news/ ... st-1287886

Disney Stock Downgraded Over Dim Theme Parks Forecast
https://www.hollywoodreporter.com/news/ ... st-1289125

Bearish Disney Analyst Warns Investors Over Long-Term COVID-19 Impact
https://www.hollywoodreporter.com/news/ ... ct-1290335

Disney Stock Downgraded as Analyst Warns of "Unrivaled Earnings Risk" Due to Pandemic
https://www.hollywoodreporter.com/news/ ... ic-1293056

Disney Stock Downgraded to "Sell" Over Coronavirus Impact
https://www.hollywoodreporter.com/news/ ... ct-1293314

Disney Gets Analyst Downgrade: "The Stock Has Risen Too Far Too Fast"
https://www.hollywoodreporter.com/news/ ... st-1296197

Disney Analyst Cuts Stock on "Longer" Pandemic Hit, Sees Cinemas "Largely Closed" Until Mid-2021
https://www.hollywoodreporter.com/news/ ... ed-1303411

[blackcauldron85]

Before your last explanation post to me, I emailed my dad to ask him what it all means. He said, "The corporate debt notes are similar to bonds where they sell them and offer interest to the buyers for a specific time period. It is a quick way for corporations to raise money.
They get interest. Same reason people buy bonds, have CDs or even savings accounts.
They get a paper, something like an IOU. Disney promises to make interest payments on their investment per the terms of the note."

I think between the two of you, I understand it more now. Thank you!!

[Sotiris]

Apple Posts Record Services Revenue of $13.3 Billion, Beats Lowered Wall Street Expectations
https://variety.com/2020/digital/news/a ... 234594565/

[Disney's Divinity]

I wonder if the fact that Disney risked a lot on Disney+ for long-term gain may have made the impact on the company deeper during the Coronavirus pandemic? I know I remember reading that they would be losing money on Disney+ for at least the first 5-6 years.

[Farerb]

Why Bob Iger’s Ultimate Power Move May Be Selling Disney to Apple
https://www.thewrap.com/bob-iger-sell-d ... ower-move/

[rodrigo_ca]

Landing a deal with Apple (or some other megabuyer) would also cement Iger’s legacy. “I think he’d welcome it — he’d be the last CEO of Disney,”

Oh gosh why does this sound like something Iger would think?

[Rumpelstiltskin]

Sounds like the media is running amok with the rumors again. Apple insider says it will not happen:
https://appleinsider.com/articles/22/11 ... at-it-will

[PatrickvD]

I’m not buying it either to be honest. How exactly would that be a positive legacy for Iger?

He’ll want to turn the company’s fortunes around again and prove he’s the ultimate CEO. That’s his legacy obviously.

[Farerb]

Bob Iger names Steve Jobs as chief inspiration behind dramatic return as Disney CEO amid persistent rumors of a sale to Apple
https://fortune.com/2023/04/17/disney-c ... teve-jobs/

[Sotiris]

Bob Iger Is Reportedly Preparing To Sell Disney
https://www.screengeek.net/2023/07/18/d ... -bob-iger/

No More Mr. Nice Guy: Bob Iger May Just Want to Sell Disney and Be Done
https://www.thewrap.com/bob-iger-strike-disney-sale/

Watch Out, Apple – Another Disney Buyer Could Be Emerging
https://www.thewrap.com/apple-disney-bl ... s-m-and-a/

Bob Iger Says Potential Disney Sale Is ‘Not Something That We Obsess About’
https://www.thewrap.com/bob-iger-disney ... eculation/

A Disney Sale to Apple? Don’t Count It Out This Time
https://www.hollywoodreporter.com/busin ... 235559416/

[Disney's Divinity]

I don't really get the logic behind this, I admit. More knowledgeable people than I am would know better than I would. Wouldn't Iger be putting himself out of job by selling Disney? What is he the CEO of if Apple becomes the owner? And why would stockholders benefit from this? Would they just get paid out from the sale and then be done with Disney after?

And in case of the hypothetical, I wonder how Apple owning things would affect WDAS. And PIXAR. (Not to mention Marvel and Lucasfilm.) I'd like to think if any animation studio gets folded up from here, it'll be PIXAR since WDAS has the longer legacy and PIXAR's films could simply be folded into it (along with other miscellaneous films Disney owns now like Anastasia, FernGully, Thumbelina, etc.).

[Kyle]

even if it does get sold, I still dont see pixar getting folded. Espcecially with the involvment steve jobs had in its beginings, there must be some amount of pride in that, although I guess that would be more relavant if jobs were still alive.

But something else just came to mind, if apple bought Disney, wouldn't that mean John Lassetter would now be back in some fashion? Does Apple own skydance? I know they exclusively host their animated projects, but wasn't sure how deeply connected they were.

[Sotiris]

Online chatter says that another reason Iger wants to sell Disney to Apple is so that he can boast being the last Disney CEO and go down in history.