Apple and Disney as a company: insane idea less crazy than you think

Apple and Disney are two of the largest companies in the world. For years they were not in each other’s way, but with the arrival of Apple TV + that has now changed. Can the two giants merge into one huge giant?

In recent months, stock market analysts have called it an opportunity if Apple and Disney merged into one large company. It would benefit the value. However, the two don’t seem to be doing that at the moment. But a strange thought? No, it certainly isn’t.

Disney and Apple: a golden combination?

It would be the biggest merger ever: Apple together with Disney. It will probably lead to a lot of opposition from the outside, because it will create a mega company, but financial experts see big benefits for turnover and profit. For example, Needham analyst Laura Martin said that it makes Apple worth 15 to 25 percent more when it happens.

That money is of course interesting for shareholders, but does it really help the companies? For years there has been a good relationship between Disney and Apple. It has everything to do with Steve Jobs. He was a major shareholder in Pixar, the studio you may know from Finding Nemo and Toy Story.

The studio was eventually sold to Disney in 2006, after which Steve Jobs became a member of the company’s board of directors. He continued in this position, alongside his work for Apple, until his death in 2011.

For a long time, no one thought about a merger between Disney and Apple, after all, they both focused on different branches. The iPhone maker was of course not concerned with series and films at all and the only gadgets that Disney wants to develop at most are lightsabers and Mickey Mouse cuddly toys.

Apple and Disney are now competitors

However, with the arrival of Apple TV+, everything has changed. At once, the two companies are competitors. Despite the good relationship, Disney + and Apple TV + have never worked together.

Yet it could have just been done, according to former Disney CEO Bob Iger. He wrote in his biography The Ride on a Lifetime: “I believe if Steve Jobs were alive, we would have merged our companies. Or at least really discussed the possibility.”

Yet a merger or acquisition is not really in line between the companies. Disney’s biggest acquisitions have been film companies such as Marvel, Lucasfilm and 21st Century Fox.

Apple, on the other hand, hardly ever makes acquisitions with large amounts. The largest dates from 2014 with Beats for $ 3 billion. This was also a pretty logical step. Not only does Beats make headphones, it also had its own streaming service. Something that Apple wanted to use and from which Apple Music emerged.

A mega takeover or merger

That $3 billion is a pittance compared to the value of The Walt Disney Company. It has a value of USD 182.56 billion.

Apple now no longer needs the knowledge about streaming services. With TV+ it already has its own platform and it has already linked quite a few big names to the service. Nevertheless, the companies can accelerate each other. For example, consider VR/AR that the Cupertino-based company is currently working on.

However, it cannot be assumed that an acquisition will be an automatic success. Sometimes a merger between two companies seems like an ideal match, but it is still disappointing. That can be for all sorts of reasons.

Yet it could just be the case, although the companies do not seem to want it so far. And strange, no it certainly isn’t, given the friendly relationship between Apple and Disney.