In a move that would shake up the entertainment industry, Disney CEO Bob Iger is reportedly planning to sell the company to Apple. The news has sent shockwaves through the industry, with many analysts and investors questioning the logic of the deal.
There are a number of potential benefits to a Disney-Apple merger. First, the deal would create a media giant with unrivaled reach and scale. Disney’s vast library of content, combined with Apple’s global distribution network, would create a powerhouse that could dominate the streaming wars. The merger would allow Disney to accelerate its transition to a streaming-first business. But why is Disney’s CEO Bob Iger so keen on selling when he’s known as someone who builds, not breaks?
The deal of the century
There are ongoing rumors in the industry that Bob Iger, who was recently reappointed as the Chief Executive Officer of Disney, is planning on selling the company in its entirety after having already made up his mind about selling the company’s television assets. This could be because the company’s streaming division is currently looking at possibly $800 million in losses in its recently ended third quarter, according to sources.
Apple is already a major player in the streaming market, with its Apple TV+ streaming service. If this merger happens, it would give Disney access to Apple’s expertise and resources, which would help it grow its streaming business faster than ever before. The merger would also allow Disney to expand its reach into newer markets.
Apple has a strong presence in China, where Disney has struggled to gain traction. The merger would give Disney access to Apple’s Chinese customers, which would be a major boost for the company’s growth.
Read more: Disney CEO’s Olive Branch to China Amidst Heavy Censorship Backlash
Is a merger between the two companies actually possible? And is it a good idea?
However, there are also some potential drawbacks to a Disney-Apple merger. First, the deal would raise concerns about antitrust regulation. The combined company would have a significant amount of market power, which could lead to higher prices for consumers.
The folks at AppleInsider also claim that a deal this size is not very possible, and that is even if Apple has the kind of loose change lying around to buy Disney. Some time ago, a US judge denied a merger between two leading publishing houses just because a merger would mean lesser advances to their authors and cutting competition.
This means that if we consider even for a second that a deal as massive as Apple buying Disney were to go down, it would be happening through federal regulators of the United States.
Second, the deal could lead to job losses. Disney and Apple are both major employers, and the merger could result in layoffs as the two companies consolidate their operations. Third, the deal could be seen as a sign that Disney is giving up on its own streaming business. Disney has invested heavily in its streaming services, such as Disney+ and Hulu.
The potential benefits and drawbacks of a Disney-Apple merger are complex and far-reaching. It remains to be seen whether the deal will actually happen, but it is clear that if it happens, it would have a significant impact on the entertainment industry.
Source: Marca
