Should Apple buy Disney?

[Palendat]

Should Apple buy Disney? Discuss! I think they should. It would, in my opinion, create a lot of synergy and positive spin offs.

 

[mbrou24]

Should Apple buy Disney? Discuss! I think they should. It would, in my opinion, create a lot of synergy and positive spin offs.

Wouldn't it be the other way around... Should Disney buy apple? Disney as a business is way larger than apple

 

[Palendat]

Disney's market cap is about 95 billion. Apple has $137 billion just sitting there in cash. No borrowing, no issuing new shares. Easy, right! Except for the shenanigans a company can do to stop things.

 

[wiigirl]

I would think that would ge a bit of a train wreck myself. Should Apple invest in a Disney resort or ride....oh yeah. Should they combine and become a single company...no no no

 

[lockedoutlogic]

Wouldn't it be the other way around... Should Disney buy apple? Disney as a business is way larger than apple

yeah...you're backwards on that one.

its not how many parks, employees, or horrible announcers on ESPN you have...

it's how much cash you have or what you could be bought for...that's where you're power comes from

 

[bom_noite]

An interesting way for Apple to spend their $138 Billion war chest. They would have about $38 B after all is said and done.

But, I don't think the Disney board would ever approve an all cash deal.

The compelling part is that both Google and Apple have their eye's set on the next logical progression of TV: Via the Web. Content providers are expected to be the logical winners in the years to come. ABC, the Dis Channel and ESPN would be a very big weapon for one of the two to control. But, perhaps the Disney Board may believe they can do better remaining independent?

Some things that I think make this unlikely:

• Seems to me there is little synergy other then the "TV of the future" thing.
• I also wonder about the public's reaction to Disney no longer being a independent company?
• Would other Media Companies revolt and withhold content from the I-Store?

 

[mbrou24]

I would think that would ge a bit of a train wreck myself. Should Apple invest in a Disney resort or ride....oh yeah. Should they combine and become a single company...no no no

They should sponsor a ride in Epcot and call it a day. Or maybe Mae innoventions relevant

 

[bgraham34]

If anything you would want Disney to become private. Wont ever happen but if it did that is when you would see real magic happen. A better Disney would come out focusing more on the old Disney values.

 

[mm1971]

Should Apple buy Disney? Discuss! I think they should. It would, in my opinion, create a lot of synergy and positive spin offs.

I'm not sure what synergies you are thinking about, unless you are thinking the RFID technology. Disney is an entertainment/vacation destination service provider. The television networks provide diversification to a point. How does a consumer level smart phone/computer designer compare. Neither has a strong knowledge of the other and most of the benefits (reduced costs/product line extensions) do not match up.

They each could license technology/rights to content and be much better off without the difficulties that come with an acquisition. That would be a win-win and allow both to make more bottom line. Besides, do you really want an Apple store in MK?

Just my opinion.

 

[DizCaptain]

I really don't think this would or could happen. The two need eachother as separate entities. Economically, they each function well on their own turf and their pseudo partnership currently in place helps that even more. Combining these companies would cause more problems to arise than benefits.

 

[OKW Lover]

I think there was a similar thread a couple of months ago.

I'd still say that the answer is no. They are two different businesses in two different market segments. I don't see any significant overlap so no opportunities to wring costs out of the combined organization.

 

[lockedoutlogic]

Boy...somedays i think they should just shutdown the "rumors and news" board and replace it with "hypothetical without theoretical extrapolation"

Just kinda ruminating on something that has never been proposed. Apple shall not buy Disney nor shall Disney buy apple. It wouldn't make any sense from multiple angles until the FCC rules regarding content and how its delivered evolve/change to allow for more direct outleting (i.e. the ruthless execution of Comcast).

If only disney followed their old, boring "build something a year" plan that was pretty much normal from 1955 to 1998..then perhaps we'd keep our feet on the ground

 

[Horace Horsecollar]

Wouldn't it be the other way around... Should Disney buy apple? Disney as a business is way larger than apple

That's not true.

The Walt Disney Company (DIS) has a market cap (total value for the company's shares) of $99.15 billion

Apple Inc. (AAPL) has a market cap of $441.42 billion.

Also, as Palendat correctly noted, Apple is sitting on a pile of "cash" that's now around $137 billion. And Apple has no long-term debt. So Apple could buy Disney. If Apple offered significantly more than Disney's current market cap, Disney's board would have little choice but to put it to a shareholder vote.

But it's not going to happen.

The opportunities for synergy between the two companies are limited. Yes, digital delivery and playback of creative content from the "cloud" will continue to gain in importance, but the two companies are fundamentally in different businesses.

The investment community rewards "pure play" companies that do one thing very well, whether it's energy, pharmaceuticals, technology, or media. The heyday of conglomerates is over. Diversified companies have sold off business segments or have broken up into several more focused companies. Chances are that a combined Apple-Disney would have a lower market cap than the two companies separately; that's not what stockholders want.

 

[11290]

I can see it now:

Orlando Sentinel reports Breaking News: "Disney buses, working on their first day for new Apple supplied managers, full of anxious to get to the parks guests found themselves getting off the bus at the Kirkman Rd. entrance to Universal Studios this morning". "They told us they would not let us in. There must be some glitch in our Magic Band iOS that made them unreadable there", responded one of the wayward guests.

Don't know what the problem was said one bus driver, we were just following Apple Maps on our new Company issued iPhones and we ended up here. Apple CEO Tim Cook had no comment for the Sentinel reporter, but a spokesman for Walt Disney World did confirm that a call has been made to Google to see about using their map and direction Applications in the future.

In other Park news, it has been reported that Prince Charming was none too happy this morning when he found out he would now have to wear a black turtleneck in the Florida summer heat and humidity. In addition, it has been announced that "until further notice, all 2nd performances of the Main St. Electrical Parade have been cancelled until further notice". It seems that the upgrade to iOS 6.1 has shortened battery life and a second parade is not feasible as the floats had to be converted to "non-replaceable batteries" and sufficient capacity is not available to have 2 performances.

Stay tuned for further updates on these and other news items.

 

[caisland]

And then you have the point that the recently widowed Mrs. Jobs is the LARGEST shareholder in Disney.

 

[Faldred]

I actually suggested this a few years ago, and I still think it's a good idea.

Apple wouldn't need to buy Disney outright, all they need is controlling interest (50% + 1 share), so the cost is roughly half of what is being bantered here. I'm not sure how much of the Apple cash reserve is accessible, though -- Apple has tons of foreign profits that they can't bring back to the US without punitive taxes (which they are lobbying to change, of course).

And while, long-term, it would be a boon to the parks to replace the current Disney bean counters with Apple-inspired execs, the move for Apple would be primarily for the media side of operations -- a major broadcast network (ABC), the most-watched cable network (ESPN), a slew of other cable channels, a radio network, music labels, publishing labels, movie and television production.distribution companies, etc. Apple certainly seems to be looking hard at not just being the medium for consuming content, but influencing/controlling the mechanism for how the content is provided -- having major media players in its portfolio would help.

Getting back to the parks, I like the Apple synergy. The company vision of focus on the end-user experience is far closer to the original Disney philosophy than the "how can we nickle and dime our customers to death" attitude that seems to permeate the current organization.

All that said, I don't think it's going to happen, but I wish that it would.

 

[chartle]

Getting back to the parks, I like the Apple synergy. The company vision of focus on the end-user experience is far closer to the original Disney philosophy than the "how can we nickle and dime our customers to death" attitude that seems to permeate the current organization.

Would you be willing to pay extra for that end-user experience and there is no telling whether or not they can translate the experience they create for small consumer electronics into anything dealing with a theme park.

 

[tjkraz]

Getting back to the parks, I like the Apple synergy. The company vision of focus on the end-user experience is far closer to the original Disney philosophy than the "how can we nickle and dime our customers to death" attitude that seems to permeate the current organization.

I'm an Apple fan but not necessarily sure I agree with that. Yes they do place a high priority on the user experience, but they unquestionably make you pay for what you get.

There's a reason you can get a decent Windows laptop for $300 while an entry level Macbook will set you back $1000. Prices on phones, tablets, MP3 players...pretty much everything across the board is higher than the competition. I can't see Apple pushing a philosophy of improved guest benefits for equal ticket prices.

That said, after thinking about it I'm not even sure what sort of "nickel and diming" you are specifically referring to. A Disney parks visit isn't cheap, but you pretty much pay for the elements you wish to purchase: room, tickets, food, souvenirs.

There are some extra experiences which cost more--like the Animal Kingdom safari experience or fireworks dessert parties. But those items have such low capacity that there is no practical way they could be offered to 30,000 park guests each day.

Personally I wouldn't want to be forced to pay higher prices if it meant my park ticket came bundled with a set of Mickey ears and a "free" round of golf.

 

[Lewisc]

Getting back to the parks, I like the Apple synergy. The company vision of focus on the end-user experience is far closer to the original Disney philosophy than the "how can we nickle and dime our customers to death" attitude that seems to permeate the current organization.

All that said, I don't think it's going to happen, but I wish that it would.

Apple is about charging top dollar, maybe for a superior user experience. Other posters gave you information regarding the pricing of Apple laptops vs available Windows.

Is the battery in the iPhone designed to be replaced by the consumer? Can the consumer add a microSD memory card? Are the new lighting cables intended to be an Apple only product?

I don't agree with your nickle and dimming comment. Apple is not different then Disney.

Out of all the different companies Apple could buy Disney makes the least sense. Expensive. Not a fit.

 

[skier_pete]

Apple prior to Steve Jobs death...maybe.

Apple now - I hope not. I don't think this would be better for Disney fans.

What I've always thought is Disney should approach Apple about fixing the Imagination Pavillion. Disney could make that ride a star attraction again (for the first time) and then there could be an "Apple labs" showcasing all of Apple's forthcoming products, a window into getting people to try their Apple TV.

Full disclosure: Personally not a big fan of Apple. Anyone else find the irony in the fact that a company that first rose to fame on the back of advertising toting it as "breaking away from Big Brother" has now essentially BECOME Big Brother?Once you get hooked on Apple products, you can't get away, they only work with eachother. And I've yet to see any evidence that their products are superior to less expensive products. Sure, sleeker and sexier, but superior?