Ross Gerber, CEO of Gerber Kawasaki, stated that Apple Inc. should either acquire The Walt Disney Co. or cease its entertainment investments entirely. Gerber argued that the tech giant has reached a strategic crossroads and must decide if it wants to be a player in the entertainment sector. He suggested that acquiring Disney would transform Apple into the ultimate consumer company by combining its ecosystem with Disney's globally recognized brands.

In a post on X, Gerber wrote that the time has come for Apple to make a definitive move. He emphasized that a combination of the two companies would be powerful, but if Apple is unwilling to pursue such a deal, it should stop wasting resources on entertainment. The investor's remarks come as Disney's stock performance has lagged the broader market.

Disney shares closed Friday at $97.67, down 2.05% for the day. The stock has declined 12.17% over the past six months and 20.08% over the past year. Gerber also criticized Disney's management in an earlier post, stating that the company has failed to capitalize on its valuable franchises despite high executive compensation. He suggested that a shake-up or a breakup of the company might be necessary.

Disney and Apple Merger History

Former Disney CEO Bob Iger revealed in an interview with the Financial Times that the company held internal discussions and spoke with Apple about a potential merger. However, the talks never progressed. "We talked about it internally, and we had some conversations with Apple about it, but it never went anywhere," Iger said. He noted that Apple did not show significant interest. Iger also wrote in his memoir that a merger might have occurred if Apple co-founder Steve Jobs had still been alive.

Analyst and Company Perspectives

Wells Fargo & Co. recently argued that Disney could unlock roughly 40% upside in its stock by exiting the streaming business and refocusing on content creation and licensing. The bank cut its price target on Disney to $125 from $146 but reaffirmed its Overweight rating. Meanwhile, Apple CEO Tim Cook highlighted the company's entertainment progress during its second-quarter earnings call. He noted that Apple TV+ has secured over 800 awards and 3,400 nominations in six years. Cook also touted the platform's sports lineup, including Formula 1 coverage and Major League Soccer matches.

Recent Stock Performance

Apple Inc. has secured regulatory approval for its Apple Intelligence platform from China’s cyberspace regulator, marking a significant step in expanding its on-device generative AI features in one of its most critical markets. This clearance coincides with improved iPhone shipment trends, as the company reported a year-over-year increase in shipments during the second quarter. The development underscores Apple's strategic focus on integrating advanced AI capabilities to maintain competitiveness in the region.

Legal Escalation with OpenAI

Apple has intensified its legal dispute with OpenAI by formally instructing former employees to preserve documents and communications relevant to the ongoing litigation. The company alleges that the misappropriation of trade secrets was not limited to individual actions but was directed by senior leadership at OpenAI. This move aims to secure critical evidence as the legal battle progresses, highlighting the high stakes surrounding intellectual property in the AI sector.

Strategic Hardware Acquisitions

To accelerate its artificial intelligence ambitions, Apple is reportedly exploring the acquisition of chip companies. This strategy is intended to strengthen its AI hardware capabilities and custom silicon, allowing the tech giant to keep pace with rivals making heavy investments in AI infrastructure. The potential acquisitions reflect Apple's commitment to building a robust internal ecosystem to support its future AI-driven products and services.

Market and Analyst Sentiment

The new Siri AI, featured in the iOS 27 public beta, has drawn positive comparisons from industry analysts. Deepwater Asset Management managing partner Gene Munster likened the experience to "having a new phone," drawing parallels to the setup that fueled Google’s sharp rerating in April 2025. These developments have contributed to a stock rally, reinforcing investor confidence in Apple's ability to catch up in the rapidly evolving AI landscape.