I can provide some reasons why such an acquisition might make sense for Apple and how I see Apple benefiting by acquiring disney. Disney is currently valued under $150b. Steve Jobs was the largest individual shareholder of disney when he sold Pixar to Disney and was on the board of Disney. Iger which just came back to disney as CEO used to be on the board of Apple and was close friend with Steve Jobs and Tim Cook.
Disney owns a vast library of intellectual property, including popular franchises like Star Wars, Marvel, Pixar, and its own animated classics. Apple has been investing in original content for its streaming service, Apple TV+. Acquiring Disney could provide Apple with an extensive catalog of content to bolster its streaming offerings.
The streaming industry is highly competitive, with companies like Netflix, Amazon, and Disney (through Disney+ which has 146.7 million subscribers) vying for subscribers. Acquiring Disney could help Apple become a major player in this space, especially if it integrated Disney+ into its ecosystem.
Apple’s revenue has traditionally been heavily reliant on their app store, iPhones, and Macs. Acquiring Disney would diversify its revenue streams, as it would gain access to revenue from movies, theme parks, and consumer products, in addition to streaming. Disney had over $82 billion revenue in 2022.
Disney is one of the world’s most recognizable and beloved brands. Combining the Apple and Disney brands could create a powerful and appealing combination, attracting a broader consumer base. Apple could use Disney’s content to cross-promote its hardware and services. For example, exclusive Disney content could be used as a selling point for Apple devices.
Disney has a significant international presence, including theme parks and media distribution. Apple could leverage Disney’s global footprint to expand its own reach into new markets. Apple is known for its technological prowess. Integrating Disney’s content with Apple’s technology could lead to innovative and immersive entertainment experiences.
Apple is one of the wealthiest companies globally, with a substantial cash reserve. If it were to consider such an acquisition, it could likely afford it without significant financial strain as Apple market cap is currently at $2.86 trillion.
Mergers and acquisitions involve complex regulatory scrutiny, and various challenges in these days, but the end result would be fruitful for Apple. I have own/owned shares of both Apple and Disney.
