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business tycoon apple and disney A possible merger into one sprawling company, which experts believe would benefit both companies.
Apple, Inc. and The Walt Disney Co. have a longstanding relationship, manifested in the Disney CEO Bob Iger returns Was friends with late Apple founder Steve Jobs.
While Apple and Disney are seen picking on each other, any potential merger or acquisition would “almost certainly” be met with resistance and “shareholder lawsuits,” a financial lawyer said.
Recently, Needham analyst Laura Martin (Laura Martin) told her clients that the acquisition would increase Apple’s value by 15-25%, reigniting talk of a tie-up. So what are the chances of a merger or acquisition between the two at this time?
History of Apple and Disney
Steve Jobs, the tech company’s most obvious link to the entertainment conglomerate, is known primarily as co-creator and later Apple Inc. chief executive.
He is also the major shareholder of this company animation studio pixar, which was then 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 in 2011.
Disney’s acquisition Pixar Almost never happened, as Jobs announced in 2004 that Pixar would never work with Disney again after negotiations with former Disney CEO Michael Eisner failed. When Iger replaced him in 2005, he mended ties and Disney bought Pixar for $7.4 billion.
Iger was later named to Apple, Inc.’s board of directors in 2011 but left in 2019 as the two companies prepare to compete in the streaming wars.
no current crossing between Content on Apple TV+ and Disney+ (both launching November 2019).A tie-up between the two would surely be bad news for a rival like this Netflix and Prime Video.
A merger between Apple and Disney isn’t just a concept speculated by third parties, as Bob Iger himself envisions what the joint venture could look like in 2019.
“I believe that if Steve were still alive, we would have merged our companies, or at least discussed the possibility very seriously,” Iger said in a statement. The Journey of a Lifetime: Lessons from 15 Years as CEO of The Walt Disney Company.
Drawing on the “connective tissue” of the two companies, BloombergJon Erlichman at twitter thread on Sunday. He pointed to Apple’s pledge to spend $1 billion on theatrical distribution, Disney’s exit from the Metaverse, and Apple’s readiness to launch its own mixed reality product.
Under Iger, Disney bought companies like Pixar, MiracleLucasfilm and 21st Century fox— but maybe it’s Disney’s turn to get bought.
Apple and The Walt Disney Company did not respond Weekly newspaperrequest for comment.
The present value of Apple and Disney
While Disney is an iconic brand and a hugely successful business, its size is eclipsed by Apple.
Apple is considered the largest technology company in the world by revenue. Its revenues will total $394.3 billion in 2022, and last month it was considered the world’s most valuable company with a market capitalization of $2.620 trillion.
In comparison, The Walt Disney Company ranks 55th in market capitalization in March 2023 at $182.56 billion.
Business expert and consultant Christina Curtis said that while both companies have been hugely successful, combined profits would soar.
“Given their complementary client footprints, combining these two powerful businesses could drive significant growth,” said the founder of Curtis Leadership Consulting. Weekly newspaper“Based on the modest gains in both companies’ share prices, it appears investors will agree.”
Shares in both companies rose about 1% last week after Needham’s Martin wrote to her clients about the merger.
“It’s easy to imagine how they could seamlessly integrate their technology and services to capture more attention from consumers eager to be part of the entertainment value that Apple and Disney bring,” Curtis said.
What stopped Apple and Disney from merging?
As Iger himself hinted, interest in a Disney-Apple merger has waned since Jobs’ death in 2011.
As both companies enter the streaming wars, the two seem further apart than ever. However, according to Chris Manderson, a Beverly Hills-based financial attorney, the two firms have strengths that could benefit each other.
“Driven things [mergers and acquisitions] It is easier to buy than to make. Disney is the main property owner, but its content will drive the merger.Apple owns the platform and distribution, and Disney will provide the content,” Manderson, a partner at Ervin Cohen & Jessup LLP, told Reuters. Weekly newspaper.
While some see it as a match made in heaven, major business tie-ups don’t always go the way people hope. Manderson noted that AOL and Time Warner found synergies difficult.
“Disney has successfully integrated a lot of companies, but they are all in the entertainment industry,” he said. “Here, they’re merging with what is essentially a hardware company. It’s hard to say if that’s going to work; mergers most often fail because they fail to integrate their corporate culture and operations.”
He also warned that any attempt to merge with Apple would face legal opposition.
“Assuming Disney is the target, every public company takeover has the selling board sued for breach of fiduciary duty. There will always be accusations that they didn’t have a proper sales process, that they “sold the company too low and defrauded shareholders,” said Manderson.
“There will almost certainly be shareholder lawsuits, but it’s unlikely to stop a potential takeover. They could sue for an injunction to stop the takeover, but in practice, it would be a restructuring that wrings money out of the board in a legal way. These lawsuits are almost It always works out, usually with some minor adjustments to the purchase price and some additional filings with the SEC.”
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