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Credit: DisneyApple and The Walt Disney Company are two of the biggest corporations in the world today.
The Walt Disney Company has been established for much longer, beginning with Walt Disney himself. The company is celebrating 100 years, and is continuing to grow. The company is currently the home of many different brands, all of which fall under the same umbrella. These include studios like Lucasfilm, Pixar, Walt Disney Animation, Marvel Studios, and 20th Century Studios, as well as media entities like ESPN, ABC, and Freeform.
Of course, Disney is the largest in the industry when it comes to tourism, as well. The Disney Parks & Resorts bring in billions of dollars each year. The most popular of these destinations is Walt Disney World Resort in Orlando, Florida, and Disneyland Resort, in Anaheim, California, but there are also locations in Tokyo, Shanghai, Hong Kong, Paris, and the Disney Cruise Line, as well.
Though Disney is home to many brands and is potentially the most recognizable corporation in the world, the company has had its fair share of struggles over the last couple of years, in particular. Disney has gone through several rounds of layoffs, and there are certain branches of The Walt Disney Company that simply aren’t performing at an acceptable level.
In the ever-evolving landscape of technology and entertainment, there are occasional whispers of major companies joining forces to create even more powerful conglomerates. One such rumor that has gained significant attention is the prospect of Apple acquiring Disney. Both Apple and Disney have established themselves as giants in their respective industries, with a focus on innovation, creativity, and customer experience.
Needham analyst Laura Martin recently shared a growing opinion in the industry that Apple needs to buy Disney to “drive adoption of Vision Pro,” which Inside the Magic covered.
“AAPL needs to buy DIS to drive adoption of Vision Pro,” she wrote in a note published on Tuesday. “The fact that DIS CEO Bob Iger was on stage touting AAPL’s Vision Pro goggles demonstrates the compelling strategic fit between DIS’s content and AAPL’s wearable technology.”
For those who don’t know, Apple Vision Pro is an upcoming mixed-reality headset that will be available for purchase in 2024. Inside the Magic recently covered that CEO Bob Iger shared that Disney+ would be adopting the headsets, but this analyst thinks Apple needs to push the envelope even more.
“At $3,500, we expect adoption to be slow. However, if AAPL buys DIS, its storytellers could create unique content to drive consumer adoption of AAPL’s Vision Pro goggles,” the analyst added.
One of the primary motivations behind Apple’s potential acquisition of Disney would be to bolster its content ecosystem. The Mouse House’s vast library of intellectual property, including beloved franchises like Marvel, Star Wars, and Pixar, would significantly enhance Apple’s offering of original programming for its streaming service, Apple TV+. Additionally, its established production studios and distribution networks could provide Apple with the infrastructure and expertise to further expand its content creation capabilities.
“My idea would be it’d be exclusive to this one platform,” Martin said, adding, “It’s worth more to Apple to have these storytellers and tell stories specifically for an iPhone or an iPad or a watch.”
Several national publications have indicated over the years that Apple has the assets to purchase The Walt Disney Company, but there is also a rumor that the company could formulate a plan to purchase a significant branch, rather than the company as a whole.
ESPN has been tanking in terms of numbers in the last few years, and the cable outlet is not bringing in near the revenue that it used to. The company has already made cuts to ESPN, but the “worldwide leader in sports” is still dealing with significant “big money” contracts that could be potential trouble down the road, especially with the emergence of streaming providers.
Some insiders have indicated that Apple, which is attempting to get its Apple TV+ service off the ground, could purchase ESPN in a deal that would help both themselves and the House of Mouse. Under new leadership and redesigned structure based on streaming first, ESPN could potentially become a profitable brand again.
Of course, this is all just speculation, and nothing has been confirmed, but it is interesting to see all the talks being had by experts in the industry who think this is not as far-fetched of an idea as one might think on the surface.
Do you think Apple will purchase a big portion of Disney in the future? Let Inside the Magic know in the comments below!