Daily iPhone Blog

We have seen some stupid Apple predictions over the years, but perhaps the latest one is the most ridiculous yet and suggests that Apple will purchase Disney. Before breaking that startling claim down a little, we would like to say that it was put forward by North River Ventures consultant Francis McInerney who was speaking to the Washington Post. Yes, this was posted as a part of a nationally read and circulated newspaper.

We have come to take anything analysts say with a pinch of salt because frankly they deal in conjecture and make outlandish claims for a living. Previous nuggets have been an Apple iRing to control Apple TV and that Cupertino would never release a smart watch if the iWatch did not arrive during the first half of this year. Those weird ideas pale into insignificance next to the prediction that Apple could buy Disney.

Yes, we are talking about THE Disney, as in Walt Disney, as in Mickey Mouse, Pixar, resorts in Florida, and cartoons. According to McIerney, there is a huge amount of logic in Apple buying the entertainment brand, so much so that it could happen tomorrow, but won't. He says the buyout would be attractive to Disney as it would allow the company to move in front of rivals in terms of cloud streaming, while Apple would benefit from Disney's multi-billion dollar empire.

Feasible you may be thinking, but let us put this idea into perspective. For a start, Apple is not Facebook. Whereas Facebook thought nothing of dropping $19 billion for WhatsApp or $2 billion for Oculus Rift, Apple does not part with its cash so easily. The $3 billion acquisition of Beats Music this year was by far and away Cupertino's biggest ever purchase, and many are still reeling in surprise that it happened.

There is also the fact that Disney is a brand of equal appeal and size to Apple, and the entertainment giant is reportedly worth $145 billion. Apple's cash reserves sit at $151 billion, so the company would need to eat most of its cash to buy Disney, a move that would put Apple at great financial risk if the results of the buyout did not reap huge rewards.

But hey, we are not the experts here, apparently McInerney is.

[VIA]