About 10 years ago, I came up with a rule regarding mergers and acquisitions that has proven to be consistently accurate.

Here it is: Will Apple buy [insert company of your choice here]? –> No.

Apple rarely acquires well-known companies. Its largest acquisition to date was the $3 billion purchase of Beats Electronics in 2014. Apple values its culture and focus, which is why M&A is not typically part of its strategy.

In contrast, Microsoft has pursued numerous acquisitions to expand its scale, including buying Activision Blizzard for $69 billion, LinkedIn for $26 billion, Nuance Communications for $20 billion, and five other companies for over $5 billion. However, Apple has a different approach.

There has been speculation for years that Apple might be interested in acquiring Disney, a company with a market valuation of nearly $150 billion. The connection between the two companies dates back to Apple co-founder Steve Jobs, who became Disney’s largest individual shareholder after Disney acquired Pixar, owned by Jobs, for $7.4 billion in 2006. Jobs also joined the Disney board and developed a close friendship with Disney CEO Bob Iger.

Despite Apple’s market capitalization nearing $3 trillion, buying Disney would not be a significant transaction for them. In his autobiography, Iger expressed his belief that if Jobs were still alive, the two companies might have merged.

While it may seem like a storybook ending for Iger to sell Disney to Apple, there are doubts about Apple’s interest in acquiring Disney. Apple’s core competencies lie in technology, not running theme parks or selling consumer products like Disney does. Additionally, Apple has shown little focus on its sports rights and scripted content businesses, which are small compared to its device sales.

Buying Disney could potentially boost Apple’s smaller businesses and help with device churn and subscription revenue. However, acquiring ESPN, which has declining subscribers, and a content business centered around streaming, currently operating at a loss, may not be Apple’s preferred choice for a major acquisition.

Regulatory and cultural issues further complicate the possibility of an Apple-Disney merger. The current regulatory environment, with Lina Khan leading the Federal Trade Commission, is unlikely to allow Apple to increase its dominance. Even if the regulatory landscape changes, merging two well-established and distinct corporate cultures like Apple and Disney’s could be challenging and potentially lead to value destruction.

So, while it is possible that Apple may one day acquire Disney, my rule remains unchanged.