4 Things That Would Happen If Disney Was Sold to Apple

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Could one Disney rumor become a reality soon? And if it does, what would it mean for Disney and its fans?

©Disney

Some Disney rumors have come true — like the hushed whispers about a potential return of Bob Iger as CEO — while others have simply kept circulating within the rumor mill. One big rumor that has been going around for a while and has recently picked up some more steam is the possibility of Disney being sold to Apple. In fact, it’s something Iger speculated might have occurred if Steve Jobs was still alive. To some, selling Disney to Apple might seem like a great idea, but it will come with its own set of complicated challenges…

In August of 2023, Iger was asked whether Disney could be sold to a larger tech company. Apple may not have been directly mentioned, but the implications were pretty clear given the recent rumors of such a sale being considered. Iger did not give a straightforward “no” but instead said, “I just am not going to speculate about the potential for Disney to be acquired by any company.”

He went on to say that the “global regulatory environment” needs to be considered and that a potential acquisition is “not something we obsess about.” Iger concluded, “I’ll say no more than that.”

©Disney

But, as we noted above, it is something Iger has certainly considered, at least in the past. In his memoir, 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.”

According to The Hollywood Reporter, Needham & Co. analyst Laura Martin has predicted that Disney “will be purchased during the next three years.” And some of the statements Iger has made recently — particularly about Disney’s cable networks not being “core” to the Company, indicating a potential openness to a future sale of some of those assets — have only fueled rumors of a Disney sale

©Disney

Let’s assume the rumors of a Disney sale become reality, what could happen to the Disney Company we know today? Let’s take a look.

1 — The Disney Company Would Drastically CHANGE

First, to enable a sale, the Walt Disney Company we know today would likely have to change dramatically and would look very different by the time it ended up being acquired by Apple. Mainly, pieces (potentially large chunks) of the Company would likely be sold off to slim things down.

According to The Hollywood Reporter, one observer previously shared that they don’t think Apple would buy Disney in its current state, “But if you see Bob start to divest things…that feels like he’s prepping for a sale. And there’s clearly no buyer like Apple.”

©Disney

Soon after that statement was made is when Iger went on a CNBC interview and discussed how ABC and Disney’s cable networks may not be “core” to Disney, that the business model for those businesses is broken, and that Disney would be “expansive” and “objective” about the future of those businesses.

Many took this as Iger’s way of hanging a “for sale” sign on those businesses — which could be the first step in getting Disney ready for an acquisition by Apple. CNBC points out that Apple likely wouldn’t “want to be in the dying cable television business.” Selling off those assets could make a sale more enticing.

Tropical Tart

The Hollywood Reporter points out that things like Disney Channel and Disney Junior “would seem to be of minimal value without the larger company’s content and backing.” That’s why one observer has predicted that Disney could “load those assets with debt and sell to private equity.”

Some, like Michael Nathanson of MoffettNathanson — have speculated about the potential creation of 2 Disney companies — one focused on parks, consumer products, and Disney+, and another for everything else — suggesting a “clean break.” (Earnings Call Transcript Q3 FY 2023 — Motley Fool)

Cinderella Castle

ESPN, however, could be of interest to Apple since it has “dabbled in owning sports rights” (CNBC) and acquiring some media rights to big sporting events. Perhaps a Disney company that has relieved itself of the “dying” cable networks but has retained ESPN would be something Apple would look at with interest.

Could Disney consider breaking up its businesses in a similar way to make an Apple acquisition more likely? It’s certainly possible. But it seems that if Disney does want to be bought by Apple, it’s likely that some significant changes for Disney as a Company and its assets could be on the way.

Click here to see what one analyst has said about Disney being sold

2 — The Sale Would Face Heavy Scrutiny

Another thing that would likely happen if an acquisition of Disney by Apple is announced is heavy scrutiny from the U.S. Government. The Hollywood Reporter points out that President Joe Biden’s administration has been “aggressive in suing to prevent significant deals from being completed.”

The Federal Trade Commission points out that the law forbids mergers when the effect “may be substantially to lessen competition or to tend to create a monopoly.” The merger of these two HUGE companies — Apple and Disney — would likely raise a lot of concerns.

©Apple

Anthony Sabino, an attorney and professor at St. John’s University, has said that “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.”

On the one hand, the overlap between Apple and Disney is not all that big. However, the enormous size of each company and their combined power is what could cause some issues. CNBC says that it is “ambiguous at best, and unlikely at worst, whether regulators would allow a deal to proceed.”

Walt Disney Studios in Burbank, CA

If they were determined to make it happen, Disney and Apple could potentially sue to win approval, but that would be a time-consuming process, adding a lot of uncertainty to their businesses.

Some recent FTC and Department of Justice cases could provide Disney and Apple with ideas as to how to handle the situation, and certain terms that could encourage regulators to approve an acquisition, but whether it would all work is not clear.

©Apple

Is Disney willing to take that risk, particularly at a time when stock values are so low and the Company has other battles to face (like drops in theme park attendance at some locations)?

Is Apple willing to get itself into a potentially lengthy regulatory battle — are Disney’s assets worth the potential hassle to them? Those are some key questions that would need to be answered before anything moves forward.

3 — An Uproar Could Ensue

Let’s say Apple decides to buy Disney, what will the fans think? Well, things could go well…or they could go spectacularly wrong. The Hollywood Reporter warns, “Loyal Disney fans, many of whom are shareholders, would be wary of a tech company’s commitment to Disney’s core entertainment and theme park businesses.”

As CNBC points out, “Apple has no core competency running theme parks or selling the kinds of consumer products Disney offers.” That may cause people to be extremely worried about the future of the parks and whether those could be sold off to others in the future, seriously impacting their quality.

What will the fans think?

That could result in some big problems. Sabino cautions, “The uproar from Disney shareholders would be insane.”

But considering the fact that there are over 1 billion shares of Disney stock outstanding, and more than 60% of shares are owned by institutional investors, the shareholder fans “may not have what it takes to block a deal.”

Click here to see what our readers had to say about Disney selling off some assets and whether they should (or should NOT) do it

4 — Practical Changes

Aside from an uproar from fans, the division of the existing Walt Disney Company, and heavy government scrutiny, there are some more practical implications that could result from an acquisition of Disney by Apple.

For example, in the Disney theme parks, we could see Apple technology integrated a LOT more. You can already use your Apple Watch to scan your park ticket with MagicMobile and if you have an iPhone, you may have already used Apple Pay to purchase some items in the parks too. But we could see Apple products integrated into the parks in much more purposeful and imaginative ways.

Baymax Apple Watch band

Perhaps Apple will push for its watches to become treated much more like MagicBands and have interactive features in the parks. We could also see Apple technology implemented on rides, in photo ops, in stores, or in other experiences. 

Combining the technological advancements from Apple and Walt Disney Imagineering could change how rides, animatronics, and more are developed in the future and the type of software or hardware they use.

Hey, Dok!

We could also see new or improved Disney-related apps on the Apple app store (whether those are for the parks or for Disney content in general). We know those who have experienced tech-related issues with the My Disney Experience app would probably be thrilled about that!

In terms of more company-related changes, the acquisition would likely lead to big executive changes. Some leaders would likely leave or be let go in the transition process, and there could be major reorganizations in terms of company divisions to make it better fit whatever structure Apple uses or wants to use.

Slinky Dog Dash

From a technology standpoint on Apple’s side, the acquisition could mean that we’ll see greater integration of Disney products, shows, and content on Apple technology — from its computers to things like the Apple Vision Pro headset.

Apple also owns its own streaming service — Apple TV+. If the acquisition gives Apple access to Disney+, ESPN+, and Hulu, we could see some of the streaming services merged or perhaps bundled in unique ways. 

Miss Minutes is super creepy!

Right now, Apple’s streaming service is so small they haven’t really “bothered to tell investors the number of Apple TV+ subscribers” per CNBC. But buying Disney could “supercharge those fledging businesses.”

ESPN would be a particularly interesting thing to watch. Iger has indicated that there’s an “inevitability” to ESPN becoming largely a streaming service (Business Insider) and, as we mentioned above, Apple has at times become more interested in getting into broadcast sports and sports streaming. So that could provide Apple with some unique opportunities.

©ESPN

At this time, what might happen with the future of Disney remains a mystery. They could sell off pieces of the Company to streamline things and make an Apple acquisition more likely. Or they could take an entirely different path.

And with more immediate problems to deal with like dropping stock prices, the search for a new CEO, and the ongoing legal battles in Florida, a sale of the Company might not be the first priority. But we’ll be sure to watch for updates and let you know what we find. Stay tuned for all the latest.

Disney CEO Bob Iger — Savior or Saboteur? Click here to find out

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What do you think? Do you think Disney will ultimately be sold to another company, like Apple? Tell us in the comments.

The post 4 Things That Would Happen If Disney Was Sold to Apple first appeared on the disney food blog.

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