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A quick digression


Guest

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Jumping back to the animation industry for a second... the rumor of the day is that Apple will buy Disney.

Umm... no. Not gonna happen.

Why? Apple has no reason to, or more to the point, Steve Jobs has no reason to. With the Disney buyout of Pixar (or more accurately - the Pixar takeover of Disney), Steve is already in the position he needs to be in, to get whatever he needs from Disney for Apple, and what he's after is content for the iTunes video store, or more to the point - content for the iPod (and for the likely forthcoming Apple home media center).

The big plus in the way the deal is setup now, is that Steve gets all of this without all of the headaches involved in actually owning and running Disney. Disney is a huge, bloated, monster of a company, with far more going on than Apple really has any interest in running. Apple is really only after the content, and Disney is already providing that content (on an ever-increasing basis) for iTunes. Apple has nothing to gain (and everything to lose) by buying Disney. There's just too much risk involved for what they want to get out of it. For one thing, Apple owning Disney would hurt their relationships with other studios, severely limiting their access to non-Disney content. For another, if Disney stock tanks (box-office flops, poor theme park attendance, etc.), it's going to take down Apple with it.

At the most, there might be some sort of partnership between the two companies, giving Apple exclusive online distribution of Disney content, and maybe some sort of Disney endorsement of Apple's products. But I wouldn't expect it to go beyond that.

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Yep. Nothing in the Disney portfolio that I'm aware of which Apple (the hardware/software company) would want other than content which they can license easily enough.

 

Mergers of any kind are also always more difficult and less successful than predicted. What looks good on a balance sheet seldom translates well when you get down to the nitty gritty details.

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