📺 Stream EntrepreneurTV for Free 📺

Will Apple Acquire Disney? An Influential Analyst Thinks So. 'Worth More Together.' A merger would increase Apple's value by 15% to 25%.

By Jonathan Small

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Could iMickey soon be a reality?

Laura Martin, a Wall Street senior analyst for investment bank Needham, believes that Apple could acquire Disney in a mega-merger that would give new meaning to the term "Magic Mouse."

In a research report, Martin wrote that the companies "are worth more together than separately."

"Combining Apple's distribution footprint of 1.25 billion unique customers with Disney's 570 million consumers reached each year would drive 15% to 25% valuation upside for Apple shareholders," she noted.

The total valuation would be around $631 billion based on its current $2.5 trillion market capitalization, according to Markets Insider.

Martin said that Apple and Disney are "complementary" and that combining their two strengths could give them superpowers.

"What Apple does best is distribute content globally to 2 billion high-end mobile devices owned by 1.25 billion unique and wealthy users. And what Disney does best is create AAA content franchises, which is distributes globally across all screens, as well as in the physical world," Martin wrote.

Martin also pointed out that both companies are "marketing juggernauts," able to charge premium prices to their rabid fan bases.

Not their first dance

Apple and Disney have had a long history of working well together. When Apple launched the video iPod, Disney was one of the first companies to offer their shows on the platform. Disney also famously bought Pixar, which was helmed by Apple's legendary founder Steve Jobs. Iger and Jobs were good friends.

But good relations do not a merger make. Rumors of the two companies coming together have been squelched in the past.

Bob Iger, the newly reanointed Disney CEO, said in a Town Hall last year that he had no plans to merge with Apple.

"What you've read about in that regard is just pure speculation," Iger said.

Still, analysts like Martin believe that a merger is essential in a highly competitive market.

"I think Apple is doing a very mediocre job of streaming. They just said they were going to do a billion dollars in film financing. That's sort of laughable, because these companies that are competing in content businesses are spending $30 billion a year. Even Netflix is spending $20 billion a year," Martin told CNBC earlier today.

"Guess what the Walt Disney Company has: 100 years of some of the best intellectual property, characters, and film franchises on earth. So to own that in perpetuity would actually lower Apple's cost."

Jonathan Small

Entrepreneur Leadership Network® VIP

Founder, Write About Now Media

Jonathan Small is an award-winning author, journalist, producer, and podcast host. For 25 years, he has worked as a sought-after storyteller for top media companies such as The New York Times, Hearst, Entrepreneur, and Condé Nast. He has held executive roles at Glamour, Fitness, and Entrepreneur and regularly contributes to The New York Times, TV Guide, Cosmo, Details, Maxim, and Good Housekeeping. He is the former “Jake” advice columnist for Glamour magazine and the “Guy Guru” at Cosmo.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

Passengers Are Now Entitled to a Full Cash Refund for Canceled Flights, 'Significant' Delays

The U.S. Department of Transportation announced new rules for commercial passengers on Wednesday.

Franchise

Franchising Is Not For Everyone. Explore These Lucrative Alternatives to Expand Your Business.

Not every business can be franchised, nor should it. While franchising can be the right growth vehicle for someone with an established brand and proven concept that's ripe for growth, there are other options available for business owners.

Business News

Elon Musk Tells Investors Cheaper Tesla Electric Cars Should Arrive Ahead of Schedule

On an earnings call, Musk told shareholders that Tesla could start producing new, affordable electric cars earlier than expected.

Science & Technology

10 Things CIOs are Prioritizing Today to Stay Ahead in 2024

The role of the CIO has become increasingly important as technology continues to shape the business world.

Living

Younger Americans Don't Necessarily Want to Retire in Florida — and the 2 Affordable States at the Top of Their List Might Surprise You

Gen Z and millennials may be decades away from retirement, but some spots are already on their radar.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.