As Bob Iger returns for his second term at Disney helm, some insiders believe he’s poised to become the company’s final CEO by facilitating a blockbuster sale to tech giant Apple.
The company’s board of directors on Sunday night appointed Iger as a “replacement” for former CEO Bob Chapek.
Iger has a long history of acquisitions and deals, beginning with the purchase of Steve Jobs-led animation studio Pixar in 2006, followed by Marvel in 2009 and Lucasfilm – owner of Star Wars – in 2012.
“He’s going to sell the company,” predicted a Disney source who has previously worked with Iger.
“This is the pinnacle of the deal for the ultimate dealmaker,” they added.
While Disney would be a behemoth likely costing around $200 billion, Apple is one of the few companies in the world with that money ready to spend.
New Disney CEO Bob Iger, who previously served as the company’s head, is reportedly considering a merger with Apple
Iger was a good friend of the late Apple visionary Steve Jobs and developed a personal and professional relationship with him beginning with Disney’s deal to acquire Pixar under Jobs’ leadership
Former Disney CEO Bob Chapek said he initially chose not to oppose Florida’s Don’t Say Gay bill in order to balance the needs of customers and employees
The California tech titans currently have about $48 billion in cash on hand, and when you add in investments, the total is over $200 billion.
Apple already seems interested in the kind of product Disney would sell them — they’ve stepped up efforts to make a claim in the streaming world with Apple TV shows like Ted Lasso and Severance.
“I think he would appreciate it — he would be Disney’s last CEO,” a former top Disney executive told TheWrap.
They also noted that the two companies could mutually benefit from sharing a similar “brand identity.”
Meanwhile, the company’s poor performance under the outgoing Chapek has been blamed on a variety of factors — disappointing financial results, big losses in the streaming business, and Chapek’s mishandling of the company’s response to Ron DeSantis’ Don’t Say Gay Bill.
The bill restricts LGBTQ discussions in Florida schools to third-grade students and under.
Susan Arnold, chief executive officer, announced the change in a statement Sunday night, thanking Chapek, 62.
“We thank Bob Chapek for his service to Disney throughout his long career, including navigating the company through the unprecedented challenges of the pandemic,” the statement said.
Iger also shared a statement of his own about his excitement about the return – but didn’t mention a word to Chapek, fueling rumors of a bitter rift between the former friends.
However, rather than bailing out the company’s sluggish earnings, Chapek’s not-so-glamorous tenure as CEO caused the company’s earnings to fall even further last year — when many pundits thought it would bounce back.
Since losing more than $10 billion during the pandemic, shares of the company are down about 41 percent this year through Friday’s close.
The stock hit a 52-week low on Nov. 9, less than two weeks before the company’s shock announcement, as Messing claimed that Iger “is in a unique position to lead the company through this pivotal phase.”
Iger has been with Disney for more than four decades, including 15 years as the company’s CEO.
But given how strict the federal government has been in appealing antitrust laws lately, a deal between the two companies could be deemed illegal.
A federal judge recently blocked a bid by publishing giant Penguin Random House to buy rival Simon & Schuster in a $2.175 billion deal that would have seen the two mammoth companies merge into one.
The judge agreed with the Justice Department that the merger of two of the world’s largest publishers could “weaken” competition for “best-selling books.”
A similar conclusion could be drawn from this proposed deal as Disney and all of its acquisitions being taken over by one of the largest tech companies in the world could reduce competition.
Apple’s recent stock price – considering how strict the federal government has been in invoking antitrust laws, a deal between the two companies could be considered illegal
Disney’s poor performance under the outgoing Chapek has been attributed to a variety of factors, including losses from streaming
Aerial view of Apple’s headquarters in Cupertino, California – Apple already seems interested in the kind of product Disney would sell them and is investing more resources in streaming
But the government hasn’t won every antitrust battle it’s fought to date, and has faced losses in several different industries.
The DOJ lost its bid to block a major US sugar maker, US Sugar, from acquiring its rival Imperial Sugar Co., one of the country’s largest sugar refiners. Prosecutors signaled that they intended to appeal the decision.
They have also been hampered in their efforts to block the roughly $8 billion acquisition of Change Healthcare, a health technology company, by UnitedHealth Group, which operates the largest US health insurer.
The DOJ has also fought American Airlines and JetBlue in an antitrust case in federal court in Boston, challenging their regional partnership in the Northeast, which the government is describing as a de facto merger.
Iger’s relationship with Apple dates back even further than a streaming opportunity. He was close friends with the late Apple visionary Steve Jobs and developed a personal and professional relationship with him.
Jobs and Iger worked together to complete the merger of Pixar and Disney, and Iger wrote that it was the start of a successful relationship in Vanity Fair.
“Steve was blown away by the ease and speed with which we closed the deal, coupled with the fact that he showed an admiration for Apple and its products,” he said.
“He told me he’s never met anyone in the entertainment industry who was willing to try something that might disrupt his own company’s business model.