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While The Walt Disney Company continues to struggle, Apple Inc. remains at the top as one of the most profitable companies in the United States. Disney doesn’t even come close on a list of the top ten. This is why many investors speculate that Apple could buy Disney if it wanted to. But experts beg to differ.
Related: Despite Mass Layoffs, Bob Iger Wants to Spend More on Disney
Gone are the days when adults and teenagers would wait in long lines to get the latest Apple product from their local electronic store. While those were a fun time in history, the truth of the matter is Apple products aren’t as much of a priority these days, post-pandemic. Apple revealed that iPhone sales were down 8% from last year. Nowadays, the latest iPhone is free for cell phone users when they sign up for cellular service or renew a contract. They’re practically giving away the product.
Even though sales are down, the company’s stock continues to grow and has been on a steep incline since 2018. On the other hand, Disney has had a rocky few years in the stock market ever since the pandemic. With Apple staying strong and Disney going down, many assume this would be a good time for an acquisition. But portfolio managers and executives in the field think otherwise, according to a software and media company Bloomberg report.
According to the experts, it’s unlikely Apple will spend a large amount of its cash on such a big purchase when it’s something the company has yet to do. “Not doing a big deal hasn’t impacted them, and if it ain’t broke, don’t fix it,” said the chief executive officer of Investment Partners Asset Management, Gregg Abella. “I’m pleased that Apple has a lot of discipline in this regard.”
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Apple is known for not spending too much money on acquisitions, as they typically tend to purchase smaller companies. The company’s largest acquisition to date is the $3 billion sale of Beats Music and Beats Electronics in 2014.
In an interview Logan Purk, an Edward Jones analyst, stated, “If Apple tried to do some massive deal that was outside of its wheelhouse — not complementary, really changing its story — that would make me worried.”
For Disney fans who are against the acquisition between Apple and Disney, you can release some of that tension. However, that doesn’t mean Disney being bought out will be forever out of the question. Anything can happen if the company gets desperate enough.
Do you believe Apple will eventually come around and buy Disney? Let us know in the comments.