Learn more about the company's big purchase. Will the deal work out?
It is common in the business world for large corporations to merge or simply break up and be sold to the highest bidder, and the entertainment industry is no exception.
Perhaps that’s why talk of Apple buying a streaming giant is resurfacing. Is this really possible, or is it just another rumor floating around? The answer to this question may be much more complex than a simple yes or no. This may be true when you consider the entertainment industry, which is undergoing a major shift in the way content is created and delivered to audiences. Read on to see which company Apple could buy.
Will Disney be sold?
The fall of the Mickey Mouse Empire is a hot topic. In an interview with CNBC, Walt Disney Company CEO Bob Iger spoke about the company's operations and, among other things, that Walt Disney's TV channels, such as FX and ABC, may no longer be part of the company's main channels.
The announcement, which may not seem like much, has raised concerns among some investors. They say it could signal a sale of Disney's entire TV division. Selling the channel and its assets could add significant value to the company, but not everyone believes that is possible.
Billion dollar business
According to a Hollywood executive who spoke to The Hollywood Reporter on condition of anonymity, Apple could buy Disney if it started selling shares. The company has said it has no interest in acquiring the studio, aside from the potential complications of a merger of that size, but it is the only one that can pull off such a deal. The only way out would be to dismantle the current Disney, completely changing the way it is today.
Apple, a company valued at $2.8 trillion, might be tempted to do so if it sells some of its businesses, such as the ABC, National Geographic and Freeform television networks, and the intellectual property that goes with them. The company already has the cash to make such an acquisition. Despite declining revenues in recent years, Disney still owns the largest collection of intellectual property in the entertainment industry. Perhaps that would be enough to get Apple’s attention, no longer a technology company but increasingly committed to the content creation for users.
According to sources at THR, Disney could sell the network's TV assets, which generate about $7 billion a year, for as much as $50 billion. If the deal includes Disney's corporate debt protection, the value could be reduced by as much as $20 billion.
So, is Apple going to buy Disney?
The answer to this question is a big maybe. The company still has a few steps to take to make this purchase. However, analysts believe that this could happen as long as Disney changes its current composition to make it more streamlined and attractive to Apple.
If this happens, it will be interesting to see how the technology company would manage an entertainment brand, which works with theme parks around the world, in addition to films and series. It is worth remembering that its business in football are already doing better than expected.
