There’s one major move Disney CEO Bob Iger could make that would change Disney forever.
During Iger’s first term as CEO at Disney, he made some big acquisitions of other companies, like Marvel, Pixar, and Lucasfilm. But might it be time for Iger’s legacy to be a different one — not of buying other companies, but of selling the one he’s in charge of? It’s possible and perhaps inevitable, according to one analyst.
Analyst Prediction
According to The Hollywood Reporter, one analyst — Laura Martin from Needham & Co. — has anticipated “for some time” that Disney could be sold to Apple. Martin’s prediction is that Disney “will be purchased during the next three years.”
On July 14th, Martin wrote, “If they don’t sell, Disney will be competing against those [tech] companies in an industry with deteriorating economics (because they never need to make money from content), we believe.”
In a separate note from June, Martin noted that a Disney merger could help Apple convince buyers to invest in the Vision Pro virtual reality headset Apple has showcased. We did previously see Iger promoting the technology and announcing Disney’s collaboration with Apple on parts of it. Apple is working to develop Disney, National Geographic, Marvel, and ESPN experiences for the headset. And from day one of its release, Disney+ will be available with the device.
Martin wrote, “The fact that Disney CEO Bob Iger was on stage touting Apple’s Vision Pro goggles demonstrates the compelling strategic fit between Disney’s content and Apple’s wearable technology.”
NEW: Full video showing Disney+ on Apple Vision Pro. Disney+ will be available on Day 1.
— Scott Gustin (@ScottGustin) June 5, 2023
The Rumors
In a Vanity Fair article from 2019 (adapted from Iger’s book The Ride of A Lifetime: Lessons Learned from 15 Years as CEO of the Walt Disney Company) Iger noted: “I believe that if Steve [Jobs] were still alive, we would have combined our companies, or at least discussed the possibility very seriously.”
So even Iger himself could see value in merging Apple and Disney a number of years ago. Whether he still sees that value and thinks it best to sell Disney to Apple is a different story though.
The rumors of Disney being sold have been around for a while and at times have been so prominent that Iger himself has had to address them. That happened back in 2022 after Iger returned to the CEO position when Bob Chapek was removed.
When Iger first returned to the Company, some theorized that Iger could sell Disney potentially to Apple. In a Town Hall meeting with Cast Members, Iger called those rumors “nothing more than speculation.”
Iger’s own statements about Jobs and the possibility of combining their companies, along with his special relationship with Jobs (both from a friendship and business perspective) could be greatly fueling these rumors.
And while some argue that Apple doesn’t want to buy a studio, The Hollywood Reporter points out that Disney is no ordinary studio. With its “vault full of priceless IP” and its status as one of the most valuable brands in entertainment, Disney could be an interesting acquisition.
Some actions Iger has taken recently may only be encouraging the rumors. One observer quoted in The Hollywood Reporter said that Apple might not buy Disney as it presently exists, but if Disney were to start selling off parts of the Disney company — slimming it down — that could feel like a preparation for a sale.
Not long after that observation was made, Iger made some interesting comments on CNBC about Disney’s linear TV networks. In an interview with David Faber, Iger was asked about ABC, Disney’s cable networks, things like FX, and Nat Geo and whether he would be looking to sell them. Iger said that Disney would be “expansive” and “objective” about the future of those businesses.
He went so far as to say that those business “may not be core to Disney.” He also said that the business model for those businesses is “broken.” For many, that was seen essentially as a signal that Iger is interested in selling those linear networks.
Following this, Iger reportedly met with some executives within the TV business at Disney to calm some of their fears and “quell” some of the unease caused by his comments. Iger still appears to be closely evaluating ABC and linear networks though, as he has brought on 2 former Disney executives to give him some advice on the matter.
According to The Hollywood Reporter, some executives anticipate that the number of studios/platforms in the future will decrease dramatically. If Iger feels the same way, could he be trying to get ahead of the curve and sell Disney off now to help put the Company in a better position later?
Could a slimmer Disney company — one that has already sold off its linear TV networks — be a more desirable company for Apple to acquire? Might Iger be looking to solidify his legacy at Disney with a major move that would change things forever?
What Iger Has to Say
Iger recently addressed the sale rumors during the financial earnings call for Disney’s third quarter of fiscal year 2023. During that call, one analyst asked whether it would make sense to create 2 Disney companies — one focused on Disney+, studio intellectual property, consumer products, and the Disney Parks, and another with everything else.
Iger said that he wouldn’t comment “on the future structure of the company or the asset makeup of the company.” But he said they are looking at all of their “strategic options” when it comes to things like linear networks and ESPN.
The real kicker came at the end of the call though, when Michael Morris of Guggenheim Partners asked if Iger could see a “plausible scenario where the entire company would be sold.” Iger responded by saying, “I just am not going to speculate about the potential for Disney to be acquired by any company, whether a technology company or not.”
He cautioned that anyone speculating on such a topic “would have to immediately consider the global regulatory environment.” Then he wrapped things up by noting, “I’ll say no more than that. It’s just — it’s not something that we obsess about.”
So it seems Iger didn’t completely shut down the acquisition rumors. He didn’t say that he doesn’t see a world where Disney could be acquired but instead said he wouldn’t speculate on the matter, that regulatory matters would have to be considered, and that it’s not something Disney “obsess[es]” over. Interesting…
For now, it seems this is all a waiting game. If Iger does sell off ABC or other linear networks, we could start seeing other actions taking place that might be aimed at getting the Company ready for a potential sale. At the same time, Iger’s continued contract at Disney through 2026, the changes he’s already making, and the search for the next CEO could be enough to keep him busy for now. And changes in the streaming world, an improvement on that end, and other developments might discourage a Disney sale. The future remains uncertain.
We’ll continue to look for updates and let you know what we find. Stay tuned for more big Disney news.
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Do you think Iger will sell Disney to Apple (or another company) in the next few years? Tell us in the comments.
It could happen, but it is just a prediction and someone’s personal opinion. But If it did happen, I believe it would be good for both companies. The parks would have more money to build new attractions (maybe even new additional parks), and refurbish and update older rides and attractions. And if little Ronnie the wanna-be Dictator keeps harassing them, they would have enough money to pack up and leave Florida for a more business-friendly, open-minded, and tolerant state. I’m just saying.
Disney is in in a tough business environment facing many challenges. And its woke policies just make things more difficult for them.
I hope they keep Natgeo. 2/3 of what I watch on Disney + is Natgeo shows. It makes the platform much more appealing.
So far Apple has shown interest in it. We shall see.
How exactly are Disney’s supposed “woke” policies making things more difficult for them? Do you really think that there’s a successful boycott of Disney happening ? And IF a handful of bigots no longer go to the parks or watch the movies – do you honestly think this is making a noticeable dent in their bottom line? I think the problems are the rising costs of the parks and the poor quality of the movies. Elemental was not good and I don’t know anyone who is asking for more cartoon classics to be turned into live action movies.
By the way, the only reason the word “woke” keeps getting thrown about is because the word has been appropriated, weaponized and turned into a pejorative by the far right. They weren’t getting enough traction from CRT bashing so this was the next manufactured outrage to keep Fox news consumers in a state of hate and fear. Woke – which originated in the 1940s – is defined by the Oxford dictionary as “alert to injustice and discrimination in society, especially racism.” But now it’s simply a word you throw at anyone who doesn’t agree with bigoted and racist policies.
It is ludicrous to call Disney “woke” or to accuse them of being pedophiles and I hope they win all their lawsuits against Dictator Ronnie.
I could see a partnership between Apple and Disney for the streaming service, but I doubt that Disney itself will ever be sold or merged with a single entity. There is more to Disney than the Disney streaming service. I do believe the parks will be spun off into a separate entity in the future, with Disney merely licensing its IP to the separate entity. Disney has already been slowing moving the management of its hotels and restaurants to third parties, and Disney holds no direct ownership interest in Disney Tokyo.