Why Disney Buying Build-A-Bear Would Be a Brilliant Move

With the new Donald Trump administration taking over the government on January 20, most businesspeople believe that it will spur a boom in mergers and acquisitions. However, what’s left for The Walt Disney Company to buy?

During Bob Iger’s first tenure as CEO, Disney went on a spending spree, gobbling up Pixar, Marvel, ESPN, 20th Century Fox, and LucasFilm. At this point, everyone in the television and film industry wants to merge to copy the Disney model, but very few suitors would be interested in Disney.

Disney is also looking to unload some of its underperforming assets, like its linear television networks, but has had trouble working with a buyer. So, what’s left for Disney to buy?

The theme park industry has already consolidated, with Cedar Fair and Six Flags merging to create North America’s largest theme park company. Few companies and locations could match Disney’s quality and experience.

However, a new company has emerged as the perfect acquisition partner for The Walt Disney Company. It would expand its reach and complement what it already does in its theme parks.

Stock analyst The Motley Fool thinks that Disney should purchase Build-a-Bear. This would allow Disney to move its intellectual properties into the stores and recreate the stores in its theme parks.

The Motley Fool wrote: 

I think Build-a-Bear offers Disney a new way to engage with consumers and drive loyalty. Build-a-Bear’s interactive experience is a unique way for Disney to bring its storytelling to a new level by leveraging its intellectual property (IP) portfolio and introducing an entire new line of characters to the Build-a-Bear lineup.

Another reason why I like the idea of Disney acquiring Build-a-Bear relates to the theme park and movie businesses. Simply put, going to Disney World or even the movies nowadays is increasingly expensive — especially for families.

After years of struggling during the pandemic, Build-a-Bear has emerged more potent than ever. Its CEO recently said that the company plans to build another 30 stores this year. Plus, it would be reasonably cheap compared to Disney’s previous purchases.

In 2023, Disney made just over $5 billion on merchandise, while Build-a-Bear spent just under $500. However, combining the two could supercharge both companies.

It strangely just makes sense. So, imagine next time you head to Walt Disney World, you’ll have to get a Lightning Lane for the Magic Kingdom’s Build-a-Bear workshop. It could be coming soon.