Could Bob Iger Really Sell Disney To Apple?
When Bob Iger announced on CNBC that Disney’s linear TV networks like ABC and FX “may not be core” to the company moving forward, he may have been signaling to the rest of Hollywood that Disney was open for business.
In fact, since that time, rumors have swirled that Iger could consider selling the entire Walt Disney Company to Apple.
On its face, the idea of Apple buying DIsney seems preposterous. Apple likely wouldn’t want to purchase an entire studio, and even if they did, there is no way that the federal government would allow such a sale to take place.
“It’s a given, it’s an absolute certainty that if there was some talk of Disney merging with somebody else, that would be scrutinized to the nth degree by the FTC, by the Department of Justice,” Anthony Sabino, an attorney and professor at St. John’s University says. “So that would be basically walking into a bear trap that I’m not sure any company would be willing to get itself immersed with.”
Also, would Disney really give up its autonomy? The company remains one of the most recognizable, and profitable, brands in the world.
Why Disney Could Sell
Those who think a sale could take place, point to Iger’s CNBC comments as a harbinger of things to come.
The thinking goes that if Disney would divest itself from some of its less-lucrative properties, then the company could be an extremely valuable acquisition.
Additionally, there has been a long-standing relationship between Disney and Apple. Steve Jobs served on Disney’s board of directors from 2006 until his death in 2011. Additionally, Iger joined Apple’s board shortly after Jobs died. He resigned from that position on September 10, 2019, the same day that Apple announced it was getting into the content business with Apple TV+.
Needham & Co. analyst Laura Martin believes that Disney could sell to Apple in the next three years.
“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,” Martin wrote July 14.
Slimming Down the Company
While a sale of the entire Walt Disney Company may not be in the cards, it is no secret that Disney may be looking to shed some of its depreciating assets.
The company has publicly stated that it is looking for strategic partners for its India business, which continues to bleed money. Additionally, traditional linear stations such as ABC and cable channels like Freeform and National Geographic appear to be on the auction block.
One observer believes that Disney will “load those assets with debt and sell to private equity.”
He believes these properties could sell for $50 billion. Disney could put $25 billion of the company’s debt on the deal, which would slim its debt load to $20 billion.
The Final Word
While a sale of Disney to Apple seems far-fetched, there is one person who has long considered the possibility — Bob Iger himself.
In his 2019 memoir The Ride of a Lifetime, Iger wrote: “I believe that if Steve [Jobs} were still alive, we would have combined our companies, or at least discussed the possibility very seriously.”
Maybe an Apple acquisition of Disney isn’t so far-fetched after all.
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