Largest entertainment company ever? Return of Disney boss Bob Iger sparks Apple merger speculation

‘This is the pinnacle deal for the ultimate dealmaker’: Return of Disney boss Bob Iger sparks rumors of $200BN Apple MERGER – ‘because he wants to cement his legacy as the last CEO’

  • Insiders are predicting  Bob Iger’s return to Disney as CEO may mean the company is readying itself to merge with Apple 
  • While Disney would likely cost around $200 billion, Apple almost certainly have the funds and currently sit on a $48 billion cash stockpile
  • Apple already seem interested in the kind of product Disney would sell them and have ventured into the streaming realm with their own shows
  • But the Biden administration has been tough on antitrust laws, and a deal between the two companies may be deemed illegal

As Bob Iger returns for his second stint in charge of Disney, some insiders believe he is angling to be the last CEO the company ever has by facilitating a blockbuster sale to tech giant Apple. 

The company’s board of directors tabbed Iger to ‘replace’ former CEO Bob Chapek Sunday night.

Iger has had a long history of acquisitions and deals, starting with their purchase of Steve Jobs-led animation studio Pixar in 2006, followed by Marvel in 2009 and Lucasfilm – owner of Star Wars – in 2012. 

‘He’s going to sell the company,’ predicted a Disney source who has worked with Iger previously. 

‘This is the pinnacle deal for the ultimate dealmaker,’ they added.

While Disney would be a behemoth to purchase, likely costing around $200 billion, Apple are one of the only company’s in the world to have that cash ready to spend. 

Incoming Disney CEO Bob Iger, who previously served as the company's boss, is said to be considering a merger with Apple

Incoming Disney CEO Bob Iger, who previously served as the company’s boss, is said to be considering a merger with Apple

Iger was great friends with late Apple visionary Steve Jobs and built a personal and professional relationship with him starting with Disney's deal to acquire Jobs-led Pixar

Iger was great friends with late Apple visionary Steve Jobs and built a personal and professional relationship with him starting with Disney’s deal to acquire Jobs-led Pixar

Former Disney CEO Bob Chapek said he initially chose not to speak out against Florida's Don't Say Gay bill to balance the needs of customers and employees

Former Disney CEO Bob Chapek said he initially chose not to speak out against Florida’s Don’t Say Gay bill to balance the needs of customers and employees

The California tech titans currently have a cash stockpile of around $48 billion, and when investments are included, the total sum reaches over $200 billion. 

Apple already seems interested in the kind of product Disney would sell them – they have put increased efforts to stake a claim in the streaming world with Apple TV shows like Ted Lasso and Severance. 

‘I think he’d welcome it — he’d be the last CEO of Disney,’ a former top Disney executive told TheWrap.

They also noted that the two companies could mutually benefit as they a similar ‘brand identity.’

But considering how stringent the federal government has been recently around invoking antitrust laws, a deal between the two companies may be deemed illegal. 

A federal judge recently blocked a bid from publishing giant Penguin Random House to purchase rival Simon & Schuster, in a $2.175 billion deal that would have seen the two mammoth companies merge as one. 

The judge agreed with the Justice Department that the joining of two of the world’s biggest publishers could ‘lessen competition’ for ‘top-selling books.’

A similar conclusion could be made from this proposed deal, as Disney and all of its acquisitions being acquired by one of the world’s biggest tech companies could lessen competition.

But the government has not won every antitrust fight it has picked so far, and was handed losses across several different industries. 

The DOJ lost its bid to block a major U.S. sugar manufacturer, U.S. sugar, from acquiring its rival Imperial Sugar Co., one of the largest sugar refiners in the nation. The prosecutors signaled that they intended to appeal the decision.

They also were stymied in their effort to block the roughly $8 billion acquisition by UnitedHealth Group, which runs the largest U.S. health insurer, of Change Healthcare, a healthcare technology company.

The DOJ also has been battling American Airlines and JetBlue in an antitrust trial in federal court in Boston, challenging their regional partnership in the Northeast, which the government calls a de facto merger.

Apple's recent stock price - considering how stringent the federal government has been around invoking antitrust laws, a deal between the two companies may be deemed illegal

Apple’s recent stock price – considering how stringent the federal government has been around invoking antitrust laws, a deal between the two companies may be deemed illegal

Disney's poor performance under the outgoing Chapek has been blamed on a variety of factors including losses from streaming

Disney’s poor performance under the outgoing Chapek has been blamed on a variety of factors including losses from streaming

Aerial view of Apple's headquarters in Cupertino, California - Apple already seems interested in the kind of product Disney would sell them, putting increased resources into streaming

Aerial view of Apple’s headquarters in Cupertino, California – Apple already seems interested in the kind of product Disney would sell them, putting increased resources into streaming

Iger’s relationship with Apple goes back even further than an opportunity in the streaming space. He was great friends with late Apple visionary Steve Jobs and built a personal and professional relationship with him. 

Jobs and Iger worked together to get the Pixar-Disney merger done, and Iger wrote about that being the start of a successful relationship in Vanity Fair. 

‘The ease and the speed with which we got the deal done, combined with the fact that it showed an admiration for Apple and its products, blew Steve’s mind,’ he said.

‘He told me he’d never met anyone in the entertainment business who was willing to try something that might disrupt his own company’s business model.

Meanwhile, the company’s poor performance under the outgoing Chapek has been blamed on a variety of factors – disappointing financial results, large losses in the streaming business and Chapek’s mishandling of the company’s response to Ron DeSantis’ Don’t Say Gay bill. 

The bill limits LGBTQ discussions in Florida schools for students in the third grade and below.

Bob Chapek’s disasters as Disney CEO 

July 2021 Bob Chapek gets the blame when a feud erupts after actress Scarlett Johansson sues Disney, accusing it of breach of contract in a dispute over the release of Black Widow. Former CEO Bob Iger is reportedly embarrassed by Disney’s approach to the suit.

March 2022 Chapek faces a backlash from Disney staff for failing to criticize Ron DeSantis’s ‘Don’t Say Gay’ bill. He eventually speaks out, but is then bruised by a public battle with the Florida governor.

March 2022 Employees, furious about the handling of the Florida bill, claim that Disney execs censored ‘overtly gay affection’ in recent movies. The company backtracks on some of those decisions, reinstating a kiss in the Toy Story spinoff ‘Lightyear’.

June 2022 Chapek ousts Peter Rice, the well respected chairman of entertainment and programming. The Hollywood Reporter says insiders are ‘baffled’ by the decision. ‘This stuns me,’ says one executive.

November 2022 Costs at Disney’s streaming business are blamed for weaker-than-expected fourth-quarter earnings. Shares continue to tumble before Chapek is ousted. 

Source

Related posts