Today, Business Insider dropped a pretty big bomb: Wall Street is talking about the eventuality of Apple investing $200 Billion to buy The Walt Disney Company.
The article states that at the moment Apple is literally sitting on that stockpile. The reason why Cupertino’s company is at the very least thinking about this move, can be found in Apple’ wanting to establish itself more as content provider. They are clearly looking into getting exclusive content, which would be somewhat guaranteed with a Disney buyout/merger.
Apple is a global company. It revenues much more than Disney, of course, and it wants to expand. With Disney buying Netflix, which is perhaps the first real global content provider, and with a potential sale of ESPN, a local brand who resents cord cutters (and with a costly NBA contract to respect), it just makes more sense if anything.
To me, though, is much more than that.
Apple products are facing lows in terms of sales and/or quality. They rely on a very strong brand but mostly very strong fan base to sell their overpriced hardware (which could see a surge soon if Trump will introduce taxes on import). But it’s just a matter of time that even the fan base will realise that competition, whether is Samsung or the born-again Nokia, offers better terminals, in some cases even at lower prices.
Of course, the Note 7 botch bought Apple some time, but even their Mac division is not doing well. While the Macbook somewhat sells despite poor technical performances, its direct competitor, Microsoft Surface Book, is offering a more powerful, more versatile machine with a potentially upgradeable dock (for the people who don’t know, the new MacBook Pros aren’t upgradeable), maintaining a very slick look. All at a better price, especially considering the device double usability.
With analysts talking about why Apple should kill the Mac division, and with pieces of hardware that keep falling short of expectations, the clock is ticking for Steve Jobs’ company.
On the other hand, Disney is literally on the top of Hollywood, and of the entertainment world in general. The Marvel Cinematic Universe is the best performing franchise at box office, with LucasFilm they own the most all-around lucrative franchise, Pixar is always a guarantee, and their own Animation and Live Action divisions are just printing dollar bills. On top of that, they’re a never-ending pop-culture sensation.
Arguably, while making less money, Disney is perhaps a more popular brand than Apple, broadly speaking.
With Apple slowly but inexorably (at the moment) falling to a time potentially as bad as the pre-1998 era, a potential Disney buyout would allow Cupertino’s own to stay relevant in some ways.
It would become like Sony, if we take Kyoto company as an example. Their divisions span from entertainment to hardware producers. While they don’t span as widely as in the mid-2000s, it still the example of the most widen company at the moment. And anyways, in a way or another, Sony brand manages for different reason to still be relevant.
If Apple buys Disney, Apple would become like Sony, but much, much bigger (it already is, but you get what I mean). And it would manage to stay relevant in case their primary division keeps falling short.
Featured picture credit: wccftech.com