In a recent note to investors, Wall Street analyst Laura Martin has speculated that a merger between Apple and Disney could be worth 15-25% for the tech giant, prompting questions of whether such a deal could be on the horizon. The two companies have had strong links, and CEO of Disney, Bob Iger, was quoted saying that if Steve Jobs had lived, the merger of the two companies would likely have taken place. Both Apple and Disney are marketing giants, but Martin suggests that Disney is faced with a tougher marketing challenge, as all of its products compete in the “leisure category,” whereas Apple’s mobile products are seen as utilities. While Apple is valuable for the hardware it directly sells to consumers, Disney’s revenue stream is more widespread, leading to losses in value in adjacent industries.

Martin argues that the two companies are “better together,” with Apple being the better distributor and Disney being the better content creator, but a merger would come at a significant cost, expected to be upwards of $200 billion. Such a deal could also provide a definitive answer to the question of who will succeed Iger when he retires. With both Apple and Disney performing well in the current market, speculation over the possibility of a merger continues to intensify.