There have been speculations that Apple buying Disney since Disney purchased Pixar Animation Studios in 2006. Disney CEO Bob Iger is reportedly planning to sell the company to Apple, a move that would upend the entertainment sector. The announcement has shocked the market, and many analysts and investors are now debating the deal’s sense.
A Disney-Apple merger has a variety of advantages that could come about. First, the merger would produce a media behemoth with unmatched scope and reach. Disney’s sizable content collection and Apple’s extensive worldwide distribution network would come together to form a force that could win the streaming battles.
Disney would be able to hasten the process of becoming a streaming-first company thanks to the deal. But given that he is recognized for making improvements rather than mistakes, why is Disney CEO Bob Iger so eager to sell?
Apple buying Disney is again a possibility with Bob Iger’s return
There are persistent whispers in the business that Bob Iger, who was recently reappointed as the CEO of Disney, intends to sell the firm as a whole after having already decided to sell the company’s television holdings. This might be the case given that insiders estimate that the company’s streaming division could have lost up to $800 million in the most recent third quarter, which just finished.
With its streaming service Apple TV+, Apple is already a significant competitor in the market. Disney would have access to Apple’s knowledge and resources if this deal takes place, allowing it to expand its streaming business more quickly than before. Disney could increase its presence in more recent markets thanks to the deal.
Apple buying Disney: The deal of the century
A Disney-Apple combination, though, could potentially have significant disadvantages. First, the transaction would spark questions about antitrust laws. The combined business would possess a considerable degree of market power, which would result in increased consumer costs.
Even if Apple had the kind of extra cash on hand to purchase Disney, the people at AppleInsider assert that a deal of this size is not very likely. A US judge once rejected a merger between two major publishing companies solely on the grounds that it would result in lower author advances and lessening of competition.
This indicates that, even for a moment, if a deal as significant as Apple purchasing Disney were to occur, it would be handled by American federal officials.
Second, the agreement might result in employment losses. Both Disney and Apple are significant employers, and the merger may cause job losses if the two businesses combine their operations. Third, the agreement can be interpreted as Disney giving up on its own streaming venture. Disney has made significant investments in its streaming platforms, including Disney+ and Hulu.
The potential advantages and disadvantages of a Disney-Apple merger are intricate and extensive. Although it is unclear whether the purchase would really go through, it is certain that it would have a big influence on the entertainment sector if it did.
Losses for Disney in 2023
The third quarter of 2023, which just passed, is anticipated to result in a $800 million loss for Disney as a whole, according to recent sources. Nobody ever thought Disney would be sold to another firm, but recent events and Disney+’s streaming struggles are forcing the corporation in that direction. Insiders from many media outlets have stated they have also heard this rumor.
Disney CEO Bob Iger spoke to CNBC yesterday about the #actorsstrike & #writersstrike, so I decided to help translate pic.twitter.com/URR1nbKUe4
— Franchesca Ramsey (@chescaleigh) July 14, 2023
Even if it hasn’t been proven, something must be going on if different insiders keep hearing the same rumor. As we’ve already mentioned, Disney timed this poorly in light of the current writers’ and actors’ strikes.
Apple buying Disney would solidify his status as The Walt Disney Company’s last CEO. The path ahead is littered with opportunities. While only time will tell if this deal will ever happen, we recommend that you check out some of our other articles Sorry Twitter, Gen Z is moving to a new social media to pass the time and learn more about what is going on in the tech world.
Featured image credit: Unsplash.
