For some time now, the rumor that Apple could buy Disney has been a recurring topic in the entertainment industry. While the idea has been discussed and debated among experts, there are several reasons why this acquisition, despite being fascinating in theory, makes little sense and is unlikely to happen.
The size of the purchase
First and foremost, it’s important to consider the magnitude of a potential Disney acquisition by Apple. Disney is one of the largest and most successful entertainment companies in the world, with an enormous portfolio of properties and assets. Integrating a company of this scale would present a massive logistical challenge, not to mention the significant financial investment Cupertino would have to make.
While we often discuss Apple’s economic size, the truth is that not all assets are readily available to the company for an acquisition. A move of this magnitude is enormous, even for the world’s most valuable company.
Apple’s corporate culture
One of the key arguments against this acquisition is the strong corporate culture prevailing at Apple. The company is not just a technological giant; it’s an entity with significant values, ideals, and a very clear vision of what it wants to be. Apple even has its own university to instill its culture and philosophy in new employees.
Integrating the thousands of people who work at Disney could significantly dilute these ideals and values. Disney’s culture is unique and distinct, and merging these two cultures may not have the desired effect for either company.
Potential regulatory difficulties
Furthermore, any agreement between Apple and Disney would likely attract intense regulatory scrutiny. The current landscape has been aggressive in its approach toward mergers and acquisitions, and a combination of Apple and Disney would likely be viewed as problematic from a competition standpoint. This has already been the case for other major players in the industry, resulting in unwanted consequences for the companies involved.
Commitment to the core business of both companies
Another factor to consider is Apple’s commitment to its core business: technology. While Apple has ventured into content through Apple TV+, acquiring a studio of Disney’s magnitude could divert attention and resources from its primary focus. This wouldn’t be profitable or desirable for either company.
Disney is not just a studio; it’s a conglomerate with massive theme parks worldwide, merchandising, and many other aspects that may not align with Apple’s strategic direction in the short or long term.
This could also lead to a strong response from shareholders of both companies. While not the most crucial factor, it’s certainly one to be considered. Meanwhile, an agreement to license content, closer collaboration on productions, simultaneous releases on Disney+ and Apple TV+, or other similar agreements are much more feasible, straightforward, and beneficial for both companies.
True, in the words of Bob Iger himself, the idea of merging the companies might have been considered if Steve Jobs were still alive. But in the current climate, considering the realities both companies face, the possibility seems remote and impractical.
While the idea may seem appealing on the surface, the reality is much more complex. Apple’s strong corporate culture, regulatory challenges, commitment to its core business, and potential negative shareholder reaction are just some of the factors that make this acquisition make little sense. Speculation will continue, as is always the case in such a dynamic and ever-evolving industry. But for now, the notion of Apple buying Disney appears to be little more than a recurring and fascinating rumor that, once again, lacks practicality in reality, even though many of us might have supported it from the get-go.
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