Unrealistic expectations.
1) Comcast has to want to sell their 33% equity in Hulu before being forced to in Jan 2024. It's a two way street and according to execs at Comcast they are happy to wait. According to the trades Comcast currently values their 33% equity at 15B where according to their 10K Disney values that equity at 8.4B. That's almost a 7B gap. How do you reach an amicable agreement with that? That's the reason they are rumored to be in arbitration
2) Expanding parks and resorts. Maybe at D23 this year since by then most of the previously announced new attractions will have launched or being closed to launch. They would then need some new announcements to give people on this forum something to complain about for the next few years.
3) Buying a movie theater chain. I think this is a horrible idea and use of capital. Even before COVID the writing was on the wall and it's only been exacerbated since then. Iger himself mentioned theatrical will probably see fewer movies, but a more premium experience going forward. Owning multiplexes is not in Disney's best interest. If they do want that vertical integration then owning some premium locations in major markets that can be transformed to a unique experience is something they could look into (i.e. Batman is out? Make that location look like Gotham. Avatar? Make it look like Pandora and so on). Even then I'm not sure it would be worth it, but that's the only way I could see them getting in the theater business and it'd be much cheaper than the capital required to buy an existing chain. Buying a theater chain in 2022 is like buying RSNs in 2019 like Sinclair did.
4) Buying Cedar, Six Flags, or Seaworld. Also pretty bad idea and use of capital IMO. A lot of those places would need major refurbishments to bring it up to the standard of Disney's other resorts. They would also need to change the name from Cedar, Six Flags, or Seaworld to Disneyland XYZ. So basically Disney would be buying some premium land including in places where they may not want to have a resort in. Some of those parks also do not own the whole area they are in, so Disney cannot build a whole resort. They'd be better off buying a few hundred acres next to DLR in California for a third park and buying a few thousand acres in TX and building from scratch. Or if the intention is expanding overseas then doing that. Much cheaper too. And btw Six Flags loses the DC and HB license if they get bought out, so that makes them even less desirable.
The main goal for the company should be to deleverage, pay off Short Term Debt that just went up this past Quarter, get Long Term Debt down to historical lower levels, reintroduce dividends and stock buybacks. However, I do agree that Chapek and the board should look into M&A as consolidation is constantly happening and some desirable companies will not be available in 5 years or 10 years down the road. Looking at it now makes sense as they start lowering their ratio and LTD. They are BIG on metaverse and NFTs and IMHO the obvious move here would be game publishers for a multitude of reasons as I mentioned in the other thread.
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