The Hollywood Reporter recently released an article reviving an old but fascinating idea: Will Apple buy Disney?
It’s not the first time this idea has come up. But it seems more and more possible these days. Bob Iger, Disney CEO, reignited some of the speculation with his recent comments.
Several weeks before Bob Iger’s appearance on CNBC, during which he hinted at the possibility that Disney’s linear TV networks might not be central to the company’s operations, a seasoned Hollywood executive shared thoughts with The Hollywood Reporter. This industry insider speculated about the potential for a game-changing deal that had been circulating among industry circles: Apple acquiring Disney. Although numerous high-ranking executives had dismissed this notion, it continued to garner attention.
This observer, however, refused to dismiss the idea outright. They contended that Apple might not be interested in acquiring Disney in its current form. Instead, they suggested that if Bob Iger were to start divesting certain assets, it could indicate preparation for a sale. In such a scenario, Apple could be the most suitable suitor, given its unparalleled financial strength.
Disney’s Network TV Business For Sale?
Soon after, Bob Iger publicly signaled the potential sale of Disney’s TV businesses. This move opened up the possibility of a leaner Disney, which could be an attractive target for acquisition. Apple, boasting an impressive $62 billion in cash and equivalents and a market capitalization of $2.8 trillion, stands out as a unique contender.
Although Apple’s typical stance doesn’t align with studio acquisitions, the prospect of purchasing Disney, a company rich in invaluable intellectual property and still recognized as the preeminent entertainment brand, could potentially alter this stance.
A Long History Between Apple and Disney
The historical bond between Disney and Apple adds another layer of intrigue. The late Steve Jobs was a member of Disney’s board of directors, and Bob Iger later joined Apple’s board. Furthermore, the recent stress on Iger, who returned to the CEO role, is notable.
Disney has undergone significant changes, with key figures departing, including General Counsel Alan Braverman and Film Studio Chief Alan Horn. Amid these changes, Iger’s reconnection with former Disney executives Kevin Mayer and Tom Staggs, who now serve as consultants, suggests a strategic move to navigate these transformations.
Mayer and Staggs possess an intricate knowledge of the company’s operations, and their insights could be instrumental in streamlining costs for Disney+. Moreover, they could contribute to the potential sale of linear TV assets, including ABC and various cable channels. Notably, some properties, like Disney Channel and Disney Junior, might lose value outside the umbrella of the larger Disney enterprise.
Only A Few Will Survive
Anticipating a future landscape where only a few major platforms survive, some industry experts predict that consolidation is inevitable. In this scenario, Apple could play a leading role, alongside other giants like Amazon and Netflix. If Bob Iger shares this perspective, the idea of finding a new home for Disney might become increasingly appealing.
Despite these speculations, challenges lie ahead. Any substantial deal involving Disney would attract stringent scrutiny from regulatory bodies, particularly in the current political climate. However, recent legal cases involving tech giants seeking to acquire content companies, such as Microsoft’s takeover of Activision Blizzard, might provide a precedent for potential dealings.
While the specific overlaps between Apple and Disney may not be extensive, the combined influence of these two corporate giants could be substantial. Nonetheless, there are concerns within the Disney community, including shareholders, who might question a tech company’s commitment to Disney’s core businesses. The potential acquisition raises complex questions about preserving Disney’s legacy and brand identity.
In his memoir, “The Ride of a Lifetime,” Bob Iger mentioned his close relationship with Steve Jobs and contemplated the possibility of merging their companies if Jobs were still alive. This historical connection underscores the long-standing ties between Disney and Apple and offers a glimpse into the enduring intrigue of such a monumental deal.
Do you think Apple will buy Disney?