Waiting for the dough.
via AppleInsider
>According to sources, the deal will be completed in a stock swap worth more than $12 billion dollars (at current market estimates), with no cash exchanged. Both Apple and Pixar shareholders would receive Disney stock in exchange for their current holdings. Although the exact amount may vary with current market prices, estimates are that Disney will pay out nearly $7 billion in stock for Apple. (AAPL is currently valued at 37 11/16 as of 02/15).
Jobs reportedly stands to gain as much as $5 billion in Disney stock-- which can be attributed to his significant stake in Pixar. His stake, which amounts to more than 60 percent of the company is currently valued at $1.3 billion. But more importantly, Jobs will be in the ultimate position to guide, shape, and create a vision for technology and people around the world.<
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Allow me to wax while we wait.
While confirmation of nothing, these numbers, if accurate, are telling.
While Jobs has a single symbolic share of AAPL, his stake in PIXR essentially comprise his net worth. Not coincidentally perhaps, the proposed premium for PIXR is considerably higher than that paid for AAPL.
Further, it would appear that AAPL is the third wheel on this deal. DIS taking over a film production company is a natural, but DIS taking over a computer company, to make little sense.
However, I think Jobs was able to drag AAPL along on the premise that 1) he can make it work, 2) he can do the deal at a price that presents little downside risk to DIS. Ie; this division should more than carry its own weight earnings-wise and provide plenty opportunities for synergy.
IMO, the $50 price is also the lowest acceptable to current AAPL shareholders. Virtually no one (who bought the stock over the last few months/years) would *lose* money and the vast majority would see the opportunity to get in cheap on a mega-company.
And though some shareholders might gripe, iCEO Steve's basically got everyone by the shorthairs: if they balk, he can go off and be CEO of DIS/PIXR. Heck, if he walked, he could turnaround and execute a hostile takeover.
This assumes no one *else* would step up ... but here I'm really waxing. |
