Apple should buy Disney now…..here’s why…..

5 11 2012

First my disclaimer……(in my best Sgt. Schultz voice) I know nothing…nothing….nor do I have any insider info. This Opinion is mine and only mine. You decide what to do or what not to do with it.

After reading about Disney buying Lucasfilm for $4 billion dollars this past week it got me thinking if this isn’t part of something bigger. Disney has been buying up Heroes one by one with Pixar and Marvel and now Star Wars and Raiders of the Lost Arc among others. Now that they own a HUGE chunk of the most popular films out there who would it benefit the most to control that much popular content besides Disney. Granted Disney’s market cap is somewhere around $88 Billion dollars right now. Hardly a little chunk of money for anyone these days. But think about how much cash Apple has on hand and then think about this…….For roughly 1/3 of the cash they have on hand they could own;

Movies – Disney catalog of films, Pixar, Touchstone, LucasFilm, Marvel and others
Music – Disney and Hollywood records (think animated and broadway soundtracks, Taylor Swift on HollyWood, Rascal Flatts on Hollywood, Selena Gomez, Miley Cyrus, Demi Lavato, Plain White T’s…..and more

TV – ABC, ABC Family, ESPN and all the ESPN network, and more

Hyperion studios books, Disney books, Marvel Comics

Disney theme parks and travel outlets they own, not to mention Marvel licensing with Universal Studios for their theme parks.

Disney Interactive, Marvel Interactive,plus the technology R&D of Disney along with their advertising wing for their web properties (something that would give iAD more cred)

Then think about all of this and what Apple would be like if every time a new release came out on one of the above mentioned it was an iTunes exclusive. Now thing about every time a TV episode or movie or record or book is downloaded there is no profit sharing….it all goes into Apple’s pocket.Now think about that fact that since Apple sold Pixar to Disney they are already one of the largest shareholders of Disney stock. Think about the possibilities of Apple TV’s in hotel rooms, checking in on your iPhone, Disney park maps on your Apple only device,and the other possibilities for tie ins and expanded exposure are enormous!

The down sides I see are……..well look at SONY. We know Apple already likes to emulate Sony’s strategy to own the ecosystem surrounding their products. This would be much more difficult with so many more divisions. Sony could not tie it all together and get the divisions working together on synergies and between divisions to maximize opportunity. Why would we believe Apple and Disney could pull it off (hint I do have an answer for this)? The other downside would be the competition and iTunes. This would certainly strain relations with the rest of the entertainment companies out there. Would it affect future releases coming from the studios? I think most need iTunes huge audience more than Apple needs them. But it is still better to have variety on both sides, for distribution for the studios, and titles for Apple.

This is just a gut feeling. But it would bring Pixar back home which has sentimental value for Apple, and a great big business case behind it as well, which would help take some of the focus off Apple’s latest earnings, fulfillment and software hiccups.But then it’s just a gut feeling.

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