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

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."

Wavy Line
Jonathan Small

Entrepreneur Staff

Editor in Chief of Green Entrepreneur

Jonathan Small is editor-in-chief of Green Entrepreneur, a vertical from Entrepreneur Media focused on the intersection of sustainability and business. He is also an award-winning journalist, producer, and podcast host of the upcoming True Crime series, Dirty Money, and Write About Now podcasts. Jonathan is the founder of Strike Fire Productions, a premium podcast production company. He had held editing positions at Glamour, Stuff, Fitness, and Twist Magazines. His stories have appeared in The New York Times, TV Guide, Cosmo, Details, and Good Housekeeping. Previously, Jonathan served as VP of Content for the GSN (the Game Show Network), where he produced original digital video series.

Editor's Pick

A Father Decided to Change When He Was in Prison on His Son's Birthday. Now His Nonprofit Helps Formerly Incarcerated Applicants Land 6-Figure Jobs.
A Teen Turned His Roblox Side Hustle Into a Multimillion-Dollar Company — Now He's Working With Karlie Kloss and Elton John
3 Mundane Tasks You Should Automate to Save Your Brain for the Big Stuff
The Next Time Someone Intimidates You, Here's What You Should Do
5 Ways to Manage Your Mental Health and Regulate Your Nervous System for Sustainable Success

Related Topics

Business News

'I Am Just Floored': Woman Discovers She Won $1 Million Lottery Prize While Checking Her Email at Work

Initially, she thought the email was a scam, but went to lottery headquarters and walked away with a six-figure check after taxes.

Business News

'I'm Not a Very Good Businessman': Kevin Costner Is Risking a Ton of His Own Money on New Project

The "Yellowstone" star discussed how he bankrolled his new epic movies — and his accountant isn't happy.


To Create an Enriching Work Environment, Leaders Need to Try This Approach

Let's explore the transformative power of fierce compassion: an approach that blends strength with empathy to foster a purpose-driven, trustful and caring workplace environment.

Science & Technology

A Father Decided to Change When He Was in Prison on His Son's Birthday. Now His Nonprofit Helps Formerly Incarcerated Applicants Land 6-Figure Jobs.

Sean Hosman, founder of the nonprofit Persevere, sees technology as "the great equalizer" — and is harnessing its power to lower recidivism rates.

Business News

Dam Destruction in Ukraine Sends Global Prices of 2 Common Food Crops Back Up

The flooding threatened hundreds of thousands of residents and a large nuclear power plant.