The rumour has been floating around in investment business circles for a while but so far that idea that technology giant Apple might buy Disney has been largely dismissed. If the two companies were to merge, the coalition would have a combined worth of $1 trillion. Between Disney’s wealth of content, particularly given its existing ownership of companies like Pixar, and Apple’s near monopoly on the gadgets market, the two companies would have an almost unrivalled scope in terms of reach. While many similar business mergers don’t have much of an impact on the world at large, Disney’s relatively recent acquisitions of both Marvel and Lucasfilm have proven that they make the absolute most of their deals.
The opportunities to combine the output of the two companies into a single behemoth offer a lot of food for the imagination. This deal could see Disney releases available exclusively on Apple products, from games, movies, music and even apps and custom ringtones based on popular characters and stories. It could mean Apple’s innovative technology integrated into Disney’s theme park, making for some incredible experiences on rides or in shows – or even intergrated somehow into Disney’s futuristic humanoid robots.
The possibilities are certainly breathtaking when you give your imagination freedom to run wild – which, if this goes ahead, these two companies almost certainly will.
However, the deal is far from set in stone. The rumours that have been drifting for some time now, since Apple chief Tim Cook told analysts last year that the company was open to “acquisitons of any size” and even met with Time Warner.
These rumours have only gained credence since a report was published by RBC Capital Markets, which said that “Recently, investors have increased their expectations that Apple could seriously consider acquiring Disney.”
However, there are some obstacles to the potential deal. To purchase Disney, Apple would have to shell out over $200 billion. To reach this sum, they would need federal assistance in the form of repatriating offshore funds in order to afford the acquisition. There is also the possibility that a deal of this magnitude could take two years or more to go through, even after a final decision is reached, during which time any number of further issues could arise.
Other specialists suspect that the combination of the two companies could prevent them from making future deals with their respective competitors. For instance, having control over Disney’s Marvel content may alienate DC from releasing new content with Apple in the future.
Though it is still definitely a while away and far from certain, the news has certainly given fans and investors alike some intriguing ideas to chew over.
Category: Nerd Culture