The Disney Thread | Happy 90th to Donald Duck!

[dudalb]

And now Disneyworld beginning to shut down it's attractions due to the Hurricane heading for Florida.

[Jonwo]

11 hours ago, dudalb said:

True, but people love to be messengers of doom .

The way people go on, you'd think Disney is going to collapse but I imagine it'll bounce back like they always do.

[Deathlife]

18 hours ago, Sckathian said:

My Enron shares are available if you want. This is not how you invest. There are also other companies with much clearer financials and don’t own so many entities. Disney is a bloated fucking mess that every expansion ends in disaster. Clearly a leadership issue.

 

Wouldn’t be shocked if Disney lose this shareholder case. Their streaming decisions seem insanely expensive yet its still held up by significant free offers via other services (phone subs etc.). Their entire strategy seems insane. Basically expect everyone who saw End Game to sub,

Disney and Enron are two completely different types of companies. I'm not sure why you're even making the comparison. Enron was involved in illegality which is quite different to what's happening with Disney.

 

Disney isn't even making a loss and are still paying dividend. With their diversified cash flow, that stock will eventually bounce back. 

 

I remember people talking about Nike in the same breath some years ago because of the Colin Kapernick controversy and we all saw how that turned out.

 

 

Edited August 30, 2023 by Deathlife

[Deathlife]

16 hours ago, dudalb said:

True, but people love to be messengers of doom .

Yeah, you'd think Disney is making losses year after year.

They are having challenges for sure but it's still a profitable company with many ways of generating income. 

 

Iger might have put his foot in his mouth regarding the strike, but his cost-cutting measures make sense. The company grew too fast and expanded too much. 

[Bob Train]

Disney themselves basically admit they are losing money but some people still don't believe them. Why?

[Deathlife]

40 minutes ago, Bob Train said:

Disney themselves basically admit they are losing money but some people still don't believe them. Why?

 

Because their finances are public, and anyone can read them.

 

For Disney, Streaming Losses and TV’s Decline Are a One-Two Punch - The New York Times (nytimes.com)

 

Make no mistake, Disney is making losses on streaming (no surprises) and their income from cable tv (which has an uncertain future) but the overall company is still profitable and said profit increased year over year. The only issue was that said increase didn't increase as much as expected.

 

[Arlborn]

32 minutes ago, Deathlife said:

 

 The only issue was that said increase didn't increase as much as expected.

 

No infinite growth?! The horror!! Poor shareholders.

[ZeroHour]

Disney is profitable and obviously not going anywhere, but they do have a lot of issues that are going to be difficult to resolve. Linear TV is in serious decline but still makes a lot of money. They need to decide whether or not to keep or sell those assets but selling them will mean disentangling a lot of things. The content from their linear assets feeds Hulu and its a huge part of Disney's promotional power for the other parts of their business, but the longer they hold onto them, the less valuable they become. Whether or not they can turn ESPN into a successful streaming business is a huge question mark. They're going to have to write Comcast an $8-10 billion check in January for the rest of Hulu. They have to decide to what extent they're going to integrate Disney+ and Hulu. They're still losing money in streaming and it's an open question how many subscribers their Fall price hike will cost them. They've underperformed theatrically this year and that may be evidence that they've overleveraged their brands and let quality control get away from them in their efforts to boost Disney+. Their main theme park competitor in Florida is opening a major new theme park in 2025 and they currently have no plans for any major new attractions in that window which raises questions about whether or not they're underinvesting in their theme park business because they have to use the profits from that side to make up for their flagging Hollywood assets. And none of that takes into account how prolonged strikes will ultimately effect them. In the long run they'll probably be fine, but in the short term at least, they have a lot of fires to put out. I would not assume right now that their stock has hit its low point.

[ChipDerby]

2 hours ago, Bob Train said:

Disney themselves basically admit they are losing money but some people still don't believe them. Why?

 

Hmm interesting Disney is losing money yet the CEO increases his salary every year why is that

[Jonwo]

5 hours ago, Deathlife said:

Disney and Enron are two completely different types of companies. I'm not sure why you're even making the comparison. Enron was involved in illegality which is quite different to what's happening with Disney.

 

Disney isn't even making a loss and are still paying dividend. With their diversified cash flow, that stock will eventually bounce back. 

 

I remember people talking about Nike in the same breath some years ago because of the Colin Kapernick controversy and we all saw how that turned out.

 

 

When you consider that they paid $71bn for 20th Century Fox and are today only $48bn in debt shows how profitable Disney are as a company. Outside of movies and theme parks, things like the stage musical of The Lion King is generating big bucks every year.

[dudalb]

4 hours ago, Bob Train said:

Disney themselves basically admit they are losing money but some people still don't believe them. Why?

Every company has  a bad year now and then.

Problem is you insist that Disney is on death's door.

[dudalb]

39 minutes ago, Jonwo said:

When you consider that they paid $71bn for 20th Century Fox and are today only $48bn in debt shows how profitable Disney are as a company. Outside of movies and theme parks, things like the stage musical of The Lion King is generating big bucks every year.

Next they will be saying that DIsneyworld  will have a dissapointing Labor Day weekend thanks to Hurricane  Idelia is proof Disney is doomed.

[keysersoze123]

49 minutes ago, Jonwo said:

When you consider that they paid $71bn for 20th Century Fox and are today only $48bn in debt shows how profitable Disney are as a company. Outside of movies and theme parks, things like the stage musical of The Lion King is generating big bucks every year.

That is not how it works. It was combo of cash and stock. So its not as if they took 71B in debt to acquire it. That said its Long Term Debt is down from ~53m in 2020 to whatever its now but its still sizable considering its market cap and FCF. 

 

Quote

The overall mix of consideration paid to 21st Century Fox shareholders will be approximately 50% cash and 50% stock. The stock consideration is subject to a collar (described below under ‘Transaction Details’) and is expected to be tax-free to 21st Century Fox shareholders.

https://thewaltdisneycompany.com/the-walt-disney-company-signs-amended-acquisition-agreement-to-acquire-twenty-first-century-fox-inc-for-71-3-billion-in-cash-and-stock/

[Sckathian]

5 hours ago, Bob Train said:

Disney themselves basically admit they are losing money but some people still don't believe them. Why?

Its a binary issue.

People believe good and bad only exist.

We see this constantly with stock prices.

 

Stock rises 10% on the back of a single project. Project actually only returns 5% as planned. Stock falls 6%. 

Internet? "OMG THE MARKET MAKES NO SENSE THEY ARE UP BUT THE STOCK IS DOWN"

 

Just ignore this fucking gibberish. You don't win engaging with them and the eventually lose their money investing in crypro anyay.

[keysersoze123]

6 hours ago, Deathlife said:

Disney isn't even making a loss and are still paying dividend. With their diversified cash flow, that stock will eventually bounce back. 

 

FYI dividend was "paused" since COVID started. it will probabaly come back in 2024 Jan but it wont be anything like what it was pre COVID. At least that is what market thinks. 

 

Quote

On Disney's first-quarter earnings call, CEO Bob Iger stated that management intends to ask the Board of Directors to reinstate the dividend before the end of the current year. If approved, then it's possible that the next dividend could come in January 2024, following a similar schedule to what Disney executed in the past.

The caveat, however, is that it likely won't be as big as the dividend that the company was paying in the past. Chief Financial Officer Christine McCarthy says that the payout "will likely be a small fraction of our pre-COVID dividend with the intention to increase it over time as our earnings power grows."

 

https://www.fool.com/investing/2023/04/26/will-walt-disney-stock-reinstate-its-dividend/

[Jonwo]

It's amusing how people are declaring Disney a dying company. It clearly isn't. 

[Deathlife]

That's the thing about "late-stage capitalism", if a company's profit declines (note profit, not revenue), people aren't happy.  People shouldn't be colored by the endless greed that's somehow become the norm over the last few years, a lot of people these days lose their jobs even when companies are profitable because they "didn't grow profits as expected". This has become the norm in the tech sector (another reason why those guys need to unionize). Disney is clearly have struggles but they are still profitable which suggests they are a long way from "death". Seriously, even if the Florida Disney World closes for a hurricane, Disneyland in California is still open as well as their locations across the globe (I know they don't own all of them but they are still making money from them), these guys are generating tons of cash.

 

Like I mentioned earlier, it looked like Nike was about to collapse due to the "massive boycott" (LOL) of their shoes but Nike is booming today. No one should be surprised if Anheuser-Busch and Target bounce back in a few months' time. Huge companies like these experience ups and downs but do tend to recover eventually.

 

Frankly, due to the rise of digital media there's an uncomfortable mix of news and opinions floating around and it's difficult to understand what's really happening these days. Even with box office, it's only on sites like these that you can get the full picture and even at that, we still don't get an accurate picture because we don't have all the facts (case in point with Pixar saying that Elemental will make a profit despite it's "weak performance"). It's like the whole "go woke, go broke thing", TLDR on YouTube did a pretty detailed financial analysis on this and how it was completely false that wokeness has affected the box office negatively.

 

Again, no one is saying Disney is in great health, just that they are a long way from any collapse or death or anything of that sort.

 

[cannastop]

I wonder if Disney would be in a better financial state now if it didn't buy Fox. That seemed like an unforced error.

[ZeroHour]

21 minutes ago, cannastop said:

I wonder if Disney would be in a better financial state now if it didn't buy Fox. That seemed like an unforced error.

They definitely would be without the extra debt, but whether it will be worth it in the long run is more difficult to say. It doesn’t seem like they’ve done the best job leveraging those assets. At the same time though, it’s given them Avatar and Deadpool is likely to be their biggest film next year (if it comes out next year). They got FX and Jon Landgraf which are pretty good assets to have in the streaming wars. Searchlight and 20th Century Studios also means they’re more diversified than they were prior. They paid too much for all of that, though Comcast did force their hand. 

[cannastop]

9 minutes ago, ZeroHour said:

Searchlight and 20th Century Studios also means they’re more diversified than they were prior.

seems to me they were determined to totally piss those away but I might be wrong.