News The Walt Disney Company Board of Directors Extends Robert A. Iger’s Contract as CEO Through 2026

BrianLo

BrianLo

Well-Known Member
monothingie said:
This dates back to before the Hulu buyout. This was during the bidding war for 21CF where Disney overpaid by close to $20+B.
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That’s what I’m referring to. Comcast bid Disney up 18B and then subsequently bought out Sky from them and paid at least 8.5B too much for it in the process. It’s kind of a wash for who overpaid more when they split the difference, but Roberts certainly doesn’t come off smart, with the better asset, nor laughing.
 
BrianLo

BrianLo

Well-Known Member
monothingie said:
Other than the 1/3 of Hulu from Fox can you let me know what they got that is currently profitable for them and justified the $71B spent?
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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.
 
MisterPenguin

MisterPenguin

President of Animal Kingdom
Premium Member
monothingie said:
So that Bob could overpay by $20B. This was personal for Bob and he was not going to let Brian steal the largest deal of his career. Brian knew that and played Bob to over pay.
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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.
 
monothingie

monothingie

Nakatomi Plaza Christmas Eve 1988. Never Forget.
Premium Member
MisterPenguin said:
Comcast did drive up the cost of Fox.

But Disney returned the favor and bid up the cost of Sky, which Comcast bought.
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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.
MisterPenguin said:
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.
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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.
MisterPenguin said:
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.
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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.)
MisterPenguin said:
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.
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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?
 
HauntedPirate

HauntedPirate

Park nostalgist
Premium Member
monothingie said:
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?
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Of course it is! Just ask Bob, he'll tell you so.
 
C

Comped

Well-Known Member
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.
 
Robbiem

Robbiem

Well-Known Member
He really is turning into the corporate villain from a 70s Disney movie, he needs to meet some children trying to save their home to teach him how to enjoy life.

Maybe they give him Herbie as his corporate car?
 
Doberge

Doberge

True Bayou Magic
Premium Member
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." 😏
 
D

DCBaker

Premium Member
Original Poster

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...
forums.wdwmagic.com forums.wdwmagic.com
 
BrianLo

BrianLo

Well-Known Member
monothingie said:
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.
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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.
 

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