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News The Walt Disney Company Board of Directors Extends Robert A. Iger’s Contract as CEO Through 2026
- Thread starter DCBaker
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BrianLo
Well-Known Member
There was immediate divestments of 30.5 billion dollars for the bigger ticket items. Many of them contingent and occurred with the purchase. Sky before. Hotstar most recently.
I cannot find accessible numbers for True(X), Fox Next, TeleColombia, FoxSports Mexico, A&E Europe, Argentinian FoxSports.
So in essence Disney is saddled with a 30-35B end price. Not 71. Hulu is worth 8.9 (at least). As for the other 20-25B, that’s the rub.
FX, Searchlight, 20th century are the main keynotes. Along with their back catalogues and IP. They basically bought a general entertainment catalogue and production arm; which is not nothing. It’s actually a fairly strong general entertainment based arm.
I’m not disagreeing that Bob was about to get an actual good deal and Roberts drove it up.
Comcast did drive up the cost of Fox.
But Disney returned the favor and bid up the cost of Sky, which Comcast bought.
And now that Sky was overpriced, Disney sold their share of the overpriced Sky to Comcast.
In the end, after buying Fox, Disney got $40M out of divestitures, drastically reducing the cost of Fox.
Disney kept Fox out of competitors' hands. And transformed D+ content from "family" to "general audience" allowing them to set a new sub target after blowing through the first target in a manner of months. And Disney met their goal of when D+ would be profitable.
In a competitive market, you're not going to have fantastical win after win. Even Netflix, the front runner, had a live-action streaming debacle. But that's not going to sink Netflix. And Disney isn't going to sink with several minor setbacks.
They raised the bid by $3.2B. That's a big difference from the $20B that Comcast drove up the price for Disney to purchase 21CF.
You seem to gloss over the $20B premium paid on top of the original deal as it was insignificant. I'm not sure how you get $40B from divestitures when it seemed to only total $15B with the majority of that coming from the sale of the Fox RSNs.
This is misleading. The "General Audience" (Adult) programing is what Hulu brought to table and D+ was never intended to go down that route.
You keep going back to the timeline developed at launch that D+ would be profitable by 2024 but there is so much context missing from that assessment.
1. There was never consideration of relying on an ad supported model.
2. There was never consideration of complete HULU integration.
3. The expected profits were going to be many times what is being realized now or even being forecast.
4. There was no expectation that the losses would have been so large. (They were basically blowing up a fleet of DCL cruise ships a year at the height of their losses.)
D+ main challenge is going to be user churn and loss of retail subscribers via the constant price increases. If Bob's hot mic comment about ad-tier subscribers is accurate, then they are apparently underperforming in this subscriber segment.
The "success" of DTC for Disney has not come from putting out a good product with good content, but rather through acquisitions, price increases, password crackdowns, and introducing an ad-supported tier. Like the experiences segment which showed growth mostly through price increases, is that truly a sustainable path?
Of course it is! Just ask Bob, he'll tell you so.
Most divestures from the Fox purchase were forced by the EU or other governments to allow the deal to go through in the first place (except for A&E Europe which was a bad move on the EU's part IMO, as it was a rather useless divestiture). I'm sure Disney would have rather kept the lot (at least for a while). Disney owning Sky likely would have had very interesting ramifications for ESPN stateside (PL rights would have been nearly certain), but would have put a good amount of strain on Disney's profit margin.
Brian
Well-Known Member
Looks like Bob just cashed in.
blogmickey.com
Bob Iger Sells $42.7 Million Worth of Disney Stock
Disney CEO Bob Iger has exercised an option to sell roughly $42.7 million worth of Disney stock as part of a 2014 option
blogmickey.com
GhostHost1000
Premium Member
Black Friday is coming up. Bob needed to go shopping I guess. $42.7mil. Wow
JoeCamel
Well-Known Member
He had to or lose it, he gets a tax bill for the difference as ordinary income so in his bracket ~40% maybe. Hope he can find some offsets somewhereLooks like Bob just cashed in.
Bob Iger Sells $42.7 Million Worth of Disney Stock
Disney CEO Bob Iger has exercised an option to sell roughly $42.7 million worth of Disney stock as part of a 2014 option
Looks like his annual salary yearly bonus and his social security check he was earning wasn’t enough.
Magic Crush Drop
Active Member
Not being subtle at all.The interview with Good Morning America where Bob is asked if he's more Pua or Hei Hei and he answers, "I'm not sure... I'm more Maui, right? Demigod."
Allegedly this money is earmarked for the futbol club he and Willow bought.Looks like Bob just cashed in.
Bob Iger Sells $42.7 Million Worth of Disney Stock
Disney CEO Bob Iger has exercised an option to sell roughly $42.7 million worth of Disney stock as part of a 2014 option
News - The Walt Disney Company Declares Cash Dividend of $1.00 Per Share
From the press release: The Walt Disney Company (NYSE: DIS) Board of Directors today declared a cash dividend of $1.00 per share. This represents a 33% increase over the $0.75 per share paid to shareholders during fiscal year 2024. The dividend will be paid in two installments of $0.50 per...
BrianLo
Well-Known Member
I know this is a little old, but you didn’t get a response.
These are the major divestures;
Sky - 15
Fox Sports 10.6
YES - 3.5
Endemol - 2.2
Star - 3B Spinoff + 1.5B impairment
These are the ones I can’t find numbers on;
True(X), Fox Next, TeleColombia, FoxSports Mexico, A&E Europe, Argentinian FoxSports
Penguins number may have been a tad generous in the assumption, but yours is too low. It’s at least 35B and change.
Nevermore525
Well-Known Member
Last 4 Quarters of profit for the company overall was the best since 2018, so makes sense the dividend would see a bump for shareholders.
flynnibus
Premium Member
More significantly- they are delivering on the promised turnarounds - like reduced d+ spending and the return of the dividend. I assume the d+ margin is on track too (didn’t see news yet)
BrianLo
Well-Known Member
This is also incorrect. Sky’s value was bid up 14.75B by a back and forth between Fox, Comcast and Disney. The Fox acquisition was technically 18.9B bid up.
The original Sky agreement was for Fox to acquire the remainder of the shares at £10.75 per share. When all was said and done Comcast had bid up to £17.72; and was buying the whole thing, it wasn’t already sitting on Fox’s portion since it lost the other bidding war.
Unlike the Disney acquisition bidding war over Fox, Dis actually benefited from Comcast’s overpayment. Comcast has also already written down 8.6B, which is technically an admittance of having overpaid. Only the Indian sub arm of the Fox acquisition has yielded an impairment thus far for Dis and that was only 1.5B.
I won’t lie that Brian Robert’s successfully intervened with probably a steal Iger had negotiated. Not probably, I know it was worth more than 52.4B since they’ve divested 35+ and Hulu is worth at least 8.9… but Roberts was the far bigger loser in the matter thus far…
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