Bob Iger Comments on Rumored Walt Disney Company Sale
The Q3 earnings call was just held today for The Walt Disney Company. We found out some major news, like an update on how Disney+ is doing, what Iger thinks of the ongoing strikes in the entertainment industry, and more.
We also got a response from the man in charge of Disney as to whether the company could be sold in the future.
Bob Iger Speaks Out on Rumor of Disney Sale
There has been speculation and rumors about Disney possibly being sold to a big tech company like Apple. During today’s Q3 earnings call, Disney CEO Bob Iger was asked about the potential of this kind of sale and if it’s something that would actually happen in the future.
Iger responded by saying that he was not going to speculate about the possibility of Disney being sold to a technology company. He did not shed any light as to why he wouldn’t talk about it, just that he would not.
He ended his response by saying that a sale like this is “not something we obsess about” at Disney.
It’s important to note that Iger did NOT say that a sale like this couldn’t happen. He just said that he wasn’t going to talk about it.
So, why do people think Disney could be sold to a big tech company like Apple? Let’s break it down.
Iger recently said on CNBC that Disney’s linear TV networks (like ABC and FX) “may not be core” to the company moving forward. This could be perceived as him saying that Disney was open for business.
Rumors about a sale to Apple began shortly after Iger’s comments. But, the actual sale would definitely be a huge red flag to the federal government that we’re not sure Disney or Apple would want to deal with.
However, an analyst said that they believe Disney could sell to Apple in the next three years. Needham & Co. analyst Laura Martin said, “If they don’t sell, Disney will be competing against those [tech] companies in an industry with deteriorating economics (because they never need to make money from content), we believe.”
Basically, Apple makes enough money from the other parts of their business that they really don’t have to worry about their streaming service being a huge success. But for Disney, the content they produce is one of the main parts of their business.
You can read more in-depth about why rumors have swirled around a possible sale of The Walt Disney Company right here. But, we’ll leave you with this — Bob Iger wrote in his 2019 memoir The Ride of a Lifetime, “I believe that if Steve [Jobs} were still alive, we would have combined our companies, or at least discussed the possibility very seriously.” Interesting!
Stay tuned for more Disney news and updates.