When Steve Jobs passed away in 2011, he owned more shares of Disney (NYSE: DIS) than he did of Apple (NASDAQ: AAPL). He had gained that stake through his sale of Pixar to Disney in 2006. Since then, many people have dreamed of a merger between the two iconic American companies.

Disney CEO Bob Iger floated that idea in his 2019 memoir and even claimed in a 2021 interview that Jobs would have supported a merger if he had lived. Last November, an unnamed insider claimed Iger could sell Disney to Apple, but Iger denied those rumors. Needham analyst Laura Martin recently revived that idea in a research paper that claimed an acquisition of Disney could easily boost Apple's valuation by 15% to 25%.

Apple is one of the few companies in the world with the finances to pull off that massive deal, but would it actually make any sense? Let's review three reasons Apple might buy Disney and three reasons it would be a terrible idea.

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Source Fool.com