Aug. 22, 2023 7:30 AM ET Apple Inc. (AAPL), DIS
- Acquisition rumors involving Disney are nothing new, but the one that seems to re-emerge every so often is Disney being the one acquired… usually by Apple.
- The genesis of this theory can be traced back to the tight friendship of CEO’s Bob Iger and Steve Jobs, which helped bring Pixar into the Disney fold.
- However, while that theory may have held water before, in this new era of entertainment (dominated by streaming), it no longer seems feasible… but that doesn’t stop speculation.
- Apple spending billions to enter the theme park/resorts space doesn’t make sense, especially when their core business is thriving — and that includes its own entertainment/sports divisions.
- Regardless of the financials, it’s hard to believe government regulators wouldn’t fight this type of merger — even more so than what Microsoft and Amazon previously faced with their deals.
The article discusses the long-standing speculation that Apple (AAPL) might acquire Disney (DIS) and analyzes why such a merger might not be feasible or beneficial. Here are the key points from the article:
- Historical Relationship: The speculation about Apple acquiring Disney can be traced back to the close friendship between former Apple CEO Steve Jobs and Disney CEO Bob Iger. This friendship led to Disney’s acquisition of Pixar, which was co-founded by Steve Jobs.
- Changing Entertainment Landscape: The article suggests that in the current era of entertainment, dominated by streaming services, the idea of Apple acquiring Disney is less plausible. The landscape has evolved, and both companies have made significant strides in streaming and content creation.
- Apple’s Core Business: Apple’s core business is thriving, with various subscription services, including music, scripted content, games, news, and fitness. The company has successfully entered the streaming space and continues to innovate in its traditional product lines.
- Apple’s Innovation: Apple is known for its innovation and the ability to influence consumer behavior, such as the removal of the headphone jack. The company’s focus on its core strengths and its ability to create new markets might make a Disney acquisition less appealing.
- Legal and Regulatory Challenges: A merger between two industry giants like Apple and Disney would likely face intense regulatory scrutiny. Such a merger could result in a monopoly and trigger legal challenges, setting a precedent for future deals.
- Streaming Rights: Both Apple and Disney have made substantial investments in sports streaming rights and partnerships. While collaboration in this area is possible, it might not necessitate a full merger.
- Industry Trends: The article emphasizes that the entertainment industry should focus on addressing its current challenges rather than pursuing mergers. The industry is already grappling with issues like layoffs and job loss.
- Changing Landscape: The entertainment industry is undergoing significant changes due to the rise of streaming and digital content. Mergers and acquisitions are happening, but they are often at the studio level rather than involving major tech companies.
In summary, the article suggests that while the idea of Apple acquiring Disney has historical roots, it might not align with the current strategies and strengths of both companies. Legal and regulatory challenges, as well as the changing entertainment landscape, make such a merger less likely and practical. Instead, the focus should be on addressing industry challenges and adapting to evolving consumer preferences.
