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.

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— Scott Gustin (@ScottGustin) June 5, 2023

 

But Martin isn’t the only one who thinks Disney could be sold. In fact, Iger himself once believed it would have been possible.

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.

Click here to see the BIGGEST announcements from the Q3 earnings call for FY 2023

Do you think Iger will sell Disney to Apple (or another company) in the next few years? Tell us in the comments.