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Dana Dana Blankenhorn has been a business journalist for over 25 years and has covered the online world professionally since 1985. He founded the "Interactive Age Daily" for CMP Media, and has written for the Chicago Tribune, Advertising Age, and dozens of other publications over the years.
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January 20, 2006

What Jobs Could Buy Today

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Posted by Dana Blankenhorn


The Walt Disney Co., including ABC, ESPN, the movies, the theme parks -- the whole shebang -- is presently valued at about $50 billion. That's actually about one-sixth less than it was worth five years ago.

Apple Computer Corp., by contrast is worth $65 billion. That's about eight times more than it was worth five years ago.

I decided to note this after reading about how Disney wants to make a move on Pixar, for $6.7 billion, and how that would result in a "pivotal" role for Jobs at Disney, with Steve as Disney's largest shareholder. But before he bought that pig in a poke, you'd think Steve would consider how becoming the "largest shareholder" of a media company worked out for Ted Turner.

Uh, uh. Instead of selling Pixar, Jobs could easily offer a three-way Apple-Pixar-Disney tie-up, in which Jobs and his team would own about two-thirds of the resulting company.

So the question occurs, does Jobs want to run Disney?

What could Jobs bring to Disney that would make Disney more valuable? And if the answer to that is nothing, why then is Disney thinking of bringing Jobs in through Pixar? Except to hose him as Gerry Levin hosed Turner?

To me, proposing the purchase of Disney by Apple should be Jobs' counter-offer when the subject of his joining Disney through Pixar comes up.

And if Disney really wanted a vanity hire for its board, Steve could bring in Sir Paul McCartney. He's still paying Sir Paul for the company name.

McCartney wearing mouse ears? His grandchildren would love it.

Comments (1) + TrackBacks (0) | Category: Business Models | Business Strategy | Consumer Electronics | Copyright | Economics | Investment | fun stuff


1. Jesse Kopelman on January 23, 2006 05:16 PM writes...

It's not like Steve owns Apple. Where would the value be for Apple shareholders in this deal? Time Warner was a great pick-up for AOL because they were trading at a preposterous P/E. Apple's current P/E of 40+ is a little bloated, but not to the point where I'd be prepared to dilute the shares almost 50% for an acquisition that is outside the industry. I guess you could liken such a deal to GE buying RCA (for NBC), but that was an all-cash transaction.

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