Apple Inc’s acquisition of Lions Gate Entertainment Corp.
Autor(a) principal: | |
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Data de Publicação: | 2022 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/40642 |
Resumo: | This dissertation intends to analyze the potential acquisition of Lions Gate Entertainment Corporation by Apple Inc. Apple is putting a notable amount of resources into competing in the entertainment market, and this acquisition would significantly improve its competitiveness in the industry. An analysis of the industry and the individual companies is provided, to substantiate the deal's rationale. Valuations are done of the individual companies and the synergies created by the merger to work out the transaction details. By finding the value of the merged entity with synergy effects, the combined enterprise value suggests the maximum bid that Apple can offer for the target. The intrinsic enterprise values of Apple and Lions Gate are approximately $3 trillion and $5.2 billion, respectively. The proposed merger creates $1.65 billion in net synergy value. The recommended bid price for each share is as follows: Apple will pay a 30% premium over market prices for each of Lions Gate's share classes, which equals a bid price of $18.2 for Class A and $17.0 for Class B. The total purchase price adds up to $3.9 billion. The recommended transaction will be structured as a friendly takeover, as the acquisition will create value for shareholders of both companies. Apple will finance the takeover with 100% cash to signal confidence in the merger and the vast amount of excess cash on its balance sheets. By 2024, the acquisition will create value for Apple shareholders with a positive accretion yield. |
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Apple Inc’s acquisition of Lions Gate Entertainment Corp.Mergers & acquisitionsApple IncLions Gate Entertainment Corp.StreamingEntertainmentSynergyFusões e aquisiçõesEntretenimentoSinergiaDomínio/Área Científica::Ciências Sociais::Economia e GestãoThis dissertation intends to analyze the potential acquisition of Lions Gate Entertainment Corporation by Apple Inc. Apple is putting a notable amount of resources into competing in the entertainment market, and this acquisition would significantly improve its competitiveness in the industry. An analysis of the industry and the individual companies is provided, to substantiate the deal's rationale. Valuations are done of the individual companies and the synergies created by the merger to work out the transaction details. By finding the value of the merged entity with synergy effects, the combined enterprise value suggests the maximum bid that Apple can offer for the target. The intrinsic enterprise values of Apple and Lions Gate are approximately $3 trillion and $5.2 billion, respectively. The proposed merger creates $1.65 billion in net synergy value. The recommended bid price for each share is as follows: Apple will pay a 30% premium over market prices for each of Lions Gate's share classes, which equals a bid price of $18.2 for Class A and $17.0 for Class B. The total purchase price adds up to $3.9 billion. The recommended transaction will be structured as a friendly takeover, as the acquisition will create value for shareholders of both companies. Apple will finance the takeover with 100% cash to signal confidence in the merger and the vast amount of excess cash on its balance sheets. By 2024, the acquisition will create value for Apple shareholders with a positive accretion yield.Esta dissertação pretende analisar a potencial aquisição da Lions Gate pela Apple. A Apple tem investido uma quantidade notável de recursos para competir no mercado do entretenimento, e esta aquisição melhoraria significativamente a sua competitividade na indústria. Forneço uma análise do setor e das empresas individuais que fundamentam a lógica do negócio. São feitas avaliações das empresas individuais e das sinergias criadas pela fusão para definir os detalhes da transação. Ao encontrar o valor da entidade fundida com os efeitos das sinergias, o valor combinado da empresa sugere o preço máximo que a Apple pode oferecer para o alvo de aquisição. Os valores empresariais intrínsecos da Apple e da Lions Gate são de aproximadamente US$ 3 triliões e US$ 5,2 biliões, respetivamente. A fusão proposta cria US$ 1,65 biliões em valor líquido de sinergia. O preço de oferta recomendado para cada ação é o seguinte: a Apple pagará um premium de 30% sobre os preços de mercado para cada uma das classes de ações da Lions Gate, o que equivale a um preço de oferta de US$ 18,2 para a Classe A e US$ 17,0 para a Classe B. O preço total de compra totaliza US$ 3,9 biliões. A transação recomendada será estruturada como uma aquisição amigável, pois a aquisição criará valor para os acionistas de ambas as empresas. A Apple financiará a aquisição com 100% em dinheiro para sinalizar confiança na fusão e a grande quantidade de caixa excedente no seu balanço.Assunção, António Borges deVeritati - Repositório Institucional da Universidade Católica PortuguesaJakobsen, Ole Christian Raaen2023-03-20T16:18:56Z2022-06-2920222022-06-29T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/40642TID:203133196enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-12T17:46:11Zoai:repositorio.ucp.pt:10400.14/40642Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:33:20.946262Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Apple Inc’s acquisition of Lions Gate Entertainment Corp. |
title |
Apple Inc’s acquisition of Lions Gate Entertainment Corp. |
spellingShingle |
Apple Inc’s acquisition of Lions Gate Entertainment Corp. Jakobsen, Ole Christian Raaen Mergers & acquisitions Apple Inc Lions Gate Entertainment Corp. Streaming Entertainment Synergy Fusões e aquisições Entretenimento Sinergia Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
Apple Inc’s acquisition of Lions Gate Entertainment Corp. |
title_full |
Apple Inc’s acquisition of Lions Gate Entertainment Corp. |
title_fullStr |
Apple Inc’s acquisition of Lions Gate Entertainment Corp. |
title_full_unstemmed |
Apple Inc’s acquisition of Lions Gate Entertainment Corp. |
title_sort |
Apple Inc’s acquisition of Lions Gate Entertainment Corp. |
author |
Jakobsen, Ole Christian Raaen |
author_facet |
Jakobsen, Ole Christian Raaen |
author_role |
author |
dc.contributor.none.fl_str_mv |
Assunção, António Borges de Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Jakobsen, Ole Christian Raaen |
dc.subject.por.fl_str_mv |
Mergers & acquisitions Apple Inc Lions Gate Entertainment Corp. Streaming Entertainment Synergy Fusões e aquisições Entretenimento Sinergia Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Mergers & acquisitions Apple Inc Lions Gate Entertainment Corp. Streaming Entertainment Synergy Fusões e aquisições Entretenimento Sinergia Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
This dissertation intends to analyze the potential acquisition of Lions Gate Entertainment Corporation by Apple Inc. Apple is putting a notable amount of resources into competing in the entertainment market, and this acquisition would significantly improve its competitiveness in the industry. An analysis of the industry and the individual companies is provided, to substantiate the deal's rationale. Valuations are done of the individual companies and the synergies created by the merger to work out the transaction details. By finding the value of the merged entity with synergy effects, the combined enterprise value suggests the maximum bid that Apple can offer for the target. The intrinsic enterprise values of Apple and Lions Gate are approximately $3 trillion and $5.2 billion, respectively. The proposed merger creates $1.65 billion in net synergy value. The recommended bid price for each share is as follows: Apple will pay a 30% premium over market prices for each of Lions Gate's share classes, which equals a bid price of $18.2 for Class A and $17.0 for Class B. The total purchase price adds up to $3.9 billion. The recommended transaction will be structured as a friendly takeover, as the acquisition will create value for shareholders of both companies. Apple will finance the takeover with 100% cash to signal confidence in the merger and the vast amount of excess cash on its balance sheets. By 2024, the acquisition will create value for Apple shareholders with a positive accretion yield. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-06-29 2022 2022-06-29T00:00:00Z 2023-03-20T16:18:56Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
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info:eu-repo/semantics/masterThesis |
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masterThesis |
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http://hdl.handle.net/10400.14/40642 TID:203133196 |
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