According to RBC analysts Steve Cahall and Leo Kulp investors have recently increased expectations that Apple could acquire Disney. Apple would need to come up with $200 billion in cash to close the deal. This could happen if Apple gets a tax break to repatriate funds from overseas back into the United States.
If Apple could receive a Tax Holiday of 9% it would effective have access to about $223 billion if in cash. According to RBC the merger could to result in an earnings increase of between 15% – 20%,
A combined Apple-Disney would create a company worth about $1 trillion and form a competitor to companies like Netflix and would also give them streaming rights for ESPN.
The rumor started when Apple CEO Tim Cook told analysts the world’s biggest company was open to acquisitions of any size.