Business titans Apple and Disney could merge into one giant company, which experts say will benefit both companies.
Apple company. and The Walt Disney Company have a long-standing relationship, reflected in the fact that Disney CEO Bob Iger is a friend of Apple founder Steve Jobs.
While Apple and Disney are widely seen as at odds with each other, any merger or acquisition would “certainly” face backlash and “shareholder litigation,” a financial lawyer said.
Needham analyst Laura Martin recently argued on the team that the takeover would boost Apple’s share price by 15-25 percent. So what are the chances of a merger or acquisition between the two at the moment?
The history of Apple and Disney
The most obvious connection between technology companies and entertainment companies is the co-founder of Apple and later Steve Jobs.
In the year He was a majority shareholder in animation studio Pixar before it was sold to The Walt Disney Company in 2006. As part of the deal, Jobs became a member of the Walt Disney Company’s board of directors, a position he held until his death. . His. 2011…
After negotiations with former Disney CEO Michael Eisner broke down in 2004, Jobs announced that Pixar would never work with Disney, so Disney’s acquisition of Pixar never happened. In the year When Iger succeeded him in 2005, he repaired the relationship and bought Disney Pixar for $7.4 billion.
In the year In 2011, Iger was hired by Apple, Inc. A board of directors was appointed, but he resigned in 2019 as the two companies prepared to clash in the streaming war.
There is currently no crossover between Apple TV+ and Disney+ content (both launched in November 2019). A collaboration between the two would certainly be bad news for competitors like Netflix and Prime Video.
As Bob Iger himself predicted what the joint venture would look like in 2019, the merger between Apple and Disney is not just an idea speculated by third parties.
“Had Steve lived, we would have merged our companies, or at least seriously discussed the matter,” Iger wrote. In “The Trip of a Lifetime: Lessons from 15 Years as CEO of The Walt Disney Company.”
Bloomberg’s John Ehrlichman wrote on Twitter Sunday about the various intersections, touching on the “connective tissue” of the two companies. Apple highlighted its commitment to spend $1 billion on theatrical releases, which comes as Apple prepares to launch its own mixed reality product for Disney’s Metaverse.
Under Iger, Disney has acquired companies such as Pixar, Marvel, Lucasfilm and 21st Century Fox, but it may be Disney’s turn to buy.
Apple, Inc. and The Walt Disney Company did not respond to requests for comment. From Newsweek .
Current prices from Apple and Disney
Although Disney is a famous brand and a very successful company, Apple, Inc.
Apple is considered the largest technology company in the world by revenue. In the year In 2022, its revenue will be 394.3 billion dollars, and last month it reached the level of the world’s largest company by market capitalization at 2.62 trillion dollars.
In comparison, The Walt Disney Company’s It had the 55th largest market capitalization as of March 2023, valued at $182.56 billion.
According to Christina Curtis, a business expert and consultant, both companies are extremely successful, and the merger will increase profits.
“The combination of these two powerhouses will result in significant growth in terms of increased customer footprint,” said the founder of Curtis Leadership Consulting. News week . “Based on both companies’ rising stock prices, investors seem to agree.”
Shares of the two companies jumped nearly 1 percent last week after Needham clients wrote about the merger.
“It’s easy to imagine how Apple and Disney will combine their technologies and services to capture the masses of consumers eager to be a part of the entertainment value they represent,” Curtis said.
What’s stopping Apple and Disney from working together?
As Iger himself suggested, interest in a Disney-Apple merger was less after Jobs’ death in 2011.
As the two companies entered the streaming war, the two seemed more different than ever. However, the two companies have additional features that can benefit each other, according to Beverly Hills financial lawyer Chris Manderson.
“What motivates. [M&A] It is easier to buy than to create something. Disney is the big owner, but their content will be the driving force behind this merger. Apple has the platform and distribution, and Disney provides the content,” said Manderson, partner at Erwin Cohen & Jessup LLP. News week .
While seen by some as a perfect match, partnerships between large companies don’t always work out the way people expect. Manderson said the combination of AOL and Time Warner is difficult.
“Disney has successfully integrated many businesses, but they are all in the entertainment industry,” he said. “Here they are basically merging with a hardware company. It’s hard to say whether this will work. The reason why mergers often fail is because they don’t integrate the company’s culture and practices.”
He also warned that any attempt to merge with Apple would face legal opposition.
“Every time a public company is bought, Disney is accused of breaching the fiduciary duty of the supplier board. There are always accusations that they didn’t get the sales process right. The company. Too cheap. To make and break the shareholders,” Manderson said.
“Of course, there will be lawsuits between shareholders, but this will not stop the raid. They may want a court order to stop the raid, but in reality it is to extort money. These lawsuits happen all the time. Some minor adjustments to the purchase price and the SEC with some additional documents.
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