Only by someone who hasn't been affected by this oncoming recession.
Which is no one.
Also, if Disney is showing itself to be this vulnerable, who wants to buy a vulnerable company?
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Disney’s Q2 (Jan/Feb/Mar) FY 2020 Earnings Results Webcast on Tuesday, May 5, 4:30ET
- Thread starter MisterPenguin
- Start date
Only by someone who hasn't been affected by this oncoming recession.
Which is no one.
Also, if Disney is showing itself to be this vulnerable, who wants to buy a vulnerable company?
Sirwalterraleigh
Premium Member
That sarcasm rocket penetrated your shields!!
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I believe the question was asked sincerely.
HauntedMansionFLA
Well-Known Member
It was. A lot of the ultra rich billionaires are making a fortune off of this event. Disney will probably (maybe) eventually bounce back. Why not make a bid? It’s happened in the past.
HauntedMansionFLA
Well-Known Member
I thought he had made around 30 billion off of this crisis. I didn’t realize Disney’s worth had gone up to that level. Thanks
No Name
Well-Known Member
Rosso11
Well-Known Member
Disney is worth over $190B as of today. However you would have to offer a lot more than that to be taken seriously, probably $250B+ There are a few companies that could afford it. But I doubt there is a single person who could realistically try.
Bezos could have been worth more but had to give his ex, $35 billion for the divorce settlement. It could have been worse. She didn't get half...
bartholomr4
Well-Known Member
CNBC just reported from Shanghai, that Disney started selling tickets to the park this morning. Tickets for the first day sold out in 3 minutes, and for the first week in less than an hour. The park is now sold out for the next month. Looks like the pent-up demand there is overwhelming the need to shelter.
Its now up to Disney to execute, and make sure the virus doesn't spread to these visitors.
finance.yahoo.com
Its now up to Disney to execute, and make sure the virus doesn't spread to these visitors.
Shanghai Disneyland tickets sell out as park prepares to re-open
Tickets for the earliest days of Shanghai Disneyland's re-opening in China sold out rapidly on Friday, according to the park's website, as it prepares to next week end a three-month shutdown because of the coronavirus outbreak. Shanghai Disneyland first shut down on Jan 25, as public venues...
SourcererMark79
Well-Known Member
- In the Parks
- No
If this is any indication of what could potentially happen here, it's going to be a wild ride.CNBC just reported from Shanghai, that Disney started selling tickets to the park this morning. Tickets for the first day sold out in 3 minutes, and for the first week in less than an hour. The park is now sold out for the next month. Looks like the pent-up demand there is overwhelming the need to shelter.
Its now up to Disney to execute, and make sure the virus doesn't spread to these visitors.
Shanghai Disneyland tickets sell out as park prepares to re-open
Tickets for the earliest days of Shanghai Disneyland's re-opening in China sold out rapidly on Friday, according to the park's website, as it prepares to next week end a three-month shutdown because of the coronavirus outbreak. Shanghai Disneyland first shut down on Jan 25, as public venues...
The Shanghai Disneyland website doesn't show they are sold out for the next month, at least as of now.
bartholomr4
Well-Known Member
Disney is tapping the bond market again with a six-part deal
Published: May 11, 2020 at 12:37 p.m. ET
By
Ciara Linnane
The Walt Disney Co. DIS, -0.56% is back in the bond market with plans for a six-part deal, according to a filing with the Securities and Exchange Commission. The move comes after the entertainment giant sold $6 billion of bonds in March. The company did not offer details on tranche size or maturities, but said the proceeds will be used for general corporate purposes, including repayment of commercial paper and other debt. The deal is being underwritten by BNP Paribas, Credit Suisse, Deutsche Bank, Goldman Sachs and Morgan Stanley, said the filing. Disney posted first-quarter earnings last week that showed profit down 90% as the coronavirus pandemic pressured everything from theme parks to film production to television advertisements. COVID-19 cost Disney at least $1 billion in profit just for its theme-park unit, executives said. Shares were down 1.3% Monday and have fallen 26% in the year to date, while the Dow Jones Industrial Average DJIA, -0.06% has fallen 15%.
www.marketwatch.com
It looks like Disney is taking advantage of really low rate and refinancing the remaining 21CF Debt.
Published: May 11, 2020 at 12:37 p.m. ET
By
Ciara Linnane
The Walt Disney Co. DIS, -0.56% is back in the bond market with plans for a six-part deal, according to a filing with the Securities and Exchange Commission. The move comes after the entertainment giant sold $6 billion of bonds in March. The company did not offer details on tranche size or maturities, but said the proceeds will be used for general corporate purposes, including repayment of commercial paper and other debt. The deal is being underwritten by BNP Paribas, Credit Suisse, Deutsche Bank, Goldman Sachs and Morgan Stanley, said the filing. Disney posted first-quarter earnings last week that showed profit down 90% as the coronavirus pandemic pressured everything from theme parks to film production to television advertisements. COVID-19 cost Disney at least $1 billion in profit just for its theme-park unit, executives said. Shares were down 1.3% Monday and have fallen 26% in the year to date, while the Dow Jones Industrial Average DJIA, -0.06% has fallen 15%.
Disney is tapping the bond market again with a six-part deal
The Walt Disney Co. undefined is back in the bond market with plans for a six-part deal, according to a filing with the Securities and Exchange Commission....
www.marketwatch.com
It looks like Disney is taking advantage of really low rate and refinancing the remaining 21CF Debt.
What are they going to do with this extra money? Is it just to pay off prior debt with lower interest? To pay for their current expansion plans? Or to buy something like Sony's Spiderman and family movies and rights or something else? Given the depressed values of so many assets there are many possibilities. I am always looking for undervalued assets and there are quite a few out there that Disney could take advantage of.Disney is tapping the bond market again with a six-part deal
Published: May 11, 2020 at 12:37 p.m. ET
By
Ciara Linnane
The Walt Disney Co. DIS, -0.56% is back in the bond market with plans for a six-part deal, according to a filing with the Securities and Exchange Commission. The move comes after the entertainment giant sold $6 billion of bonds in March. The company did not offer details on tranche size or maturities, but said the proceeds will be used for general corporate purposes, including repayment of commercial paper and other debt. The deal is being underwritten by BNP Paribas, Credit Suisse, Deutsche Bank, Goldman Sachs and Morgan Stanley, said the filing. Disney posted first-quarter earnings last week that showed profit down 90% as the coronavirus pandemic pressured everything from theme parks to film production to television advertisements. COVID-19 cost Disney at least $1 billion in profit just for its theme-park unit, executives said. Shares were down 1.3% Monday and have fallen 26% in the year to date, while the Dow Jones Industrial Average DJIA, -0.06% has fallen 15%.
Disney is tapping the bond market again with a six-part deal
The Walt Disney Co. undefined is back in the bond market with plans for a six-part deal, according to a filing with the Securities and Exchange Commission....
It looks like Disney is taking advantage of really low rate and refinancing the remaining 21CF Debt.
DisneyOutsider
Well-Known Member
They're hemorrhaging millions upon millions of dollars every day. That's why they need the cash infusion, to pay for their enormous cost burdens. I wouldn't look for them to make any Fox-like acquisitions in the near term.
denyuntilcaught
Well-Known Member
One thing to remember is that while Netflix pulls in a ton of revenue, it has never recorded a profit. Streaming services are notorious financial pits.
The are losing millions on the parks and not receiving money from the box office. However, Disney+ is positive for the cash flow and the studios. The Disney+ service is still losing money but they are paying the studio much more than they are losing. Accounting is a very interesting profession and allocating revenues and expenses fascinate. If Mandalorian was owned by Disney+ and not Lucasfilm the accounting would be completely different as the money Disney+ paid for the show would not be 100% expense since they would still own an asset but since Lucasfilm owns the show it is 100% expense for Disney+ while Lucasfilm made a profit on production and still has an asset. Bottom line, Disney does not need as much money as they borrowed. So they will either pay off more expensive debt or build or buy something else.
bartholomr4
Well-Known Member
They are going to payoff existing higher interest rate bonds, and replace them with lower priced bonds.
DVCakaCarlF
Well-Known Member
Makes the B/S look good and why not in this low interest market. The money is practically free.
Imagineer45
Active Member
That is just not true. They had an operating profit of $2.6 billion in 2019.
The only large metric where they are negative is cash flow, which is projected to be positive sometime between 2021-23.