The 27.5 Billion dollar time bomb Iger left Chapek

[networkpro]

Before everyone goes full out

, let's consider the problem that Robert Iger dropped in his lap: The remaining 33% ownership stake in Hulu is currently owned by Comcast. In order to close the Murdoc Fox deal, Iger agreed to allow Comcast to ask for the remaining interest in the joint venture to be purchased by Disney by January 2024. The valuation would be set by a reputable 3rd party at the closing date.

You now see how the lack of a cohesive streaming strategy can cause mayhem in the budgeting process when you're contractually obligated to spend 6 billion more than your yearly profit because the other Bob made the call.

Disney will more than pay for their competition's new Epic Universe parks a year and a half before it's scheduled to open.

 

[SoFloMagic]

Why not tank hulu and make it worthless at valuation

 

[networkpro]

Why not tank hulu and make it worthless at valuation

That would wipe about 10.5 Billion off of the asset sheet.

 

[SoFloMagic]

That would wipe about 10.5 Billion off of the asset sheet.

I guess the issue is that they own 2/3 now, so they'd take double the loss of any attempt. What a mess. Shouldn't they have known in 2019 that Disney plus and peacock were coming?

 

[JoeCamel]

Before everyone goes full out View attachment 651496, let's consider the problem that Robert Iger dropped in his lap: The remaining 33% ownership stake in Hulu is currently owned by Comcast. In order to close the Murdoc Fox deal, Iger agreed to allow Comcast to ask for the remaining interest in the joint venture to be purchased by Disney by January 2024. The valuation would be set by a reputable 3rd party at the closing date.

You now see how the lack of a cohesive streaming strategy can cause mayhem in the budgeting process when you're contractually obligated to spend 6 billion more than your yearly profit because the other Bob made the call.

Disney will more than pay for their competition's new Epic Universe parks a year and a half before it's scheduled to open.

Jeezzz, doom much?
Think Disney can borrow 6B? I do.
Think it will matter in the stock valuation? I do
Think it will matter one bit to the parks or the future of the company? I don't

 

[the.dreamfinder]

Why not tank hulu and make it worthless at valuation

That’s what they’re trying to do with Star+ and restricting Hulu to the US.

 

[HauntedPirate]

Jeezzz, doom much?
Think Disney can borrow 6B? I do.
Think it will matter in the stock valuation? I do
Think it will matter one bit to the parks or the future of the company? I don't

Not $6B. $6 billion beyond their current annual profit.

They already aren't delivering a dividend because of the Fox acquisition, are dropping $32 billion on content across their platforms this year, and you don't think an additional $27 billion of debt will matter. Okie dokie then.

 

[Anteater]

Not $6B. $6 billion beyond their current annual profit.

They already aren't delivering a dividend because of the Fox acquisition, are dropping $32 billion on content across their platforms this year, and you don't think an additional $27 billion of debt will matter. Okie dokie then.

lets see... Take the $20M from Chapek and apply it to Hulu... Are we getting somewhere?

 

[JoeCamel]

Not $6B. $6 billion beyond their current annual profit.

They already aren't delivering a dividend because of the Fox acquisition, are dropping $32 billion on content across their platforms this year, and you don't think an additional $27 billion of debt will matter. Okie dokie then.

Thought the 6B was to complete the purchase

 

[Sir_Cliff]

Not $6B. $6 billion beyond their current annual profit.

They already aren't delivering a dividend because of the Fox acquisition, are dropping $32 billion on content across their platforms this year, and you don't think an additional $27 billion of debt will matter. Okie dokie then.

You mean they will have to spend $27 billion to buy a third of Hulu, valuing Hulu at $81 billion? That... seems like a lot.

 

[CaptainAmerica]

Why not tank hulu and make it worthless at valuation

Why do you think the International product is called Star?

 

[HauntedPirate]

You mean they will have to spend $27 billion to buy a third of Hulu, valuing Hulu at $81 billion? That... seems like a lot.

Yeah, that was my mistake. I read DIS gross profits instead of net profits. I still don't know what 1/3 of Hulu would be valued at, though - $8 billion or $18 billion, depending on what year you look at net profits from, 2021 or 2019.

 

[larryz]

What's keeping DIS from a three-way split and then selling another half-a-billion shares to raise the money? I mean, how many people on the fence would jump at a chance to buy tons of DIS at anywhere below $50?

 

[Disstevefan1]

Before everyone goes full out View attachment 651496, let's consider the problem that Robert Iger dropped in his lap: The remaining 33% ownership stake in Hulu is currently owned by Comcast. In order to close the Murdoc Fox deal, Iger agreed to allow Comcast to ask for the remaining interest in the joint venture to be purchased by Disney by January 2024. The valuation would be set by a reputable 3rd party at the closing date.

You now see how the lack of a cohesive streaming strategy can cause mayhem in the budgeting process when you're contractually obligated to spend 6 billion more than your yearly profit because the other Bob made the call.

Disney will more than pay for their competition's new Epic Universe parks a year and a half before it's scheduled to open.

Good, I am looking forward to Epic Universe. Don’t worry about TWDC. They are invincible

 

[Sorcerer Mickey]

What's keeping DIS from a three-way split and then selling another half-a-billion shares to raise the money? I mean, how many people on the fence would jump at a chance to buy tons of DIS at anywhere below $50?

I wouldn't. I think after Thor 4, MCU fatigue will start to settle in. The Mouse has run Star Wars dry. Streaming is not the hot market it once was. A potential recession will shake up their theme park/cruise biz. The TV market is slowly eroding. Too much potential risk for me.

 

[Touchdown]

I wouldn't. I think after Thor 4, MCU fatigue will start to settle in. The Mouse has run Star Wars dry. Streaming is not the hot market it once was. A potential recession will shake up their theme park/cruise biz. The TV market is slowly eroding. Too much potential risk for me.

Let’s see the next movie after Thor 4 is, Wakanda Forever that has everyone on the creative and acting side coming back with one horrible tragic exception. Yup sounds like a recipe for that movie to flop .

The Marvels may be shaky but then we get (checking the list) Guardians of at the Galaxy Vol 3 which again has everyone returning and the early buzz on that script is that it is a perfect end to that trilogy.

I think superhero fatigue is going to take a little longer to seep in, we’ve already made it through the riskiest movies financially from phase 4 (Shang-Chi, Eternals) and now we are getting sequels to films that range from record breaking commercialy successful to very good. The only “new” franchises left are the OG Marvel team Fantastic 4 and Blade, who are far more widely known then the properties mentioned above.

 

[larryz]

Let’s see the next movie after Thor 4 is, Wakanda Forever that has everyone on the creative and acting side coming back with one horrible tragic exception. Yup sounds like a recipe for that movie to flop .

The Marvels may be shaky but then we get (checking the list) Guardians of at the Galaxy Vol 3 which again has everyone returning and the early buzz on that script is that it is a perfect end to that trilogy.

I think superhero fatigue is going to take a little longer to seep in, we’ve already made it through the riskiest movies financially from phase 4 (Shang-Chi, Eternals) and now we are getting sequels to films that range from record breaking commercialy successful to very good. The only “new” franchises left are the OG Marvel team Fantastic 4 and Blade, who are far more widely known then the properties mentioned above.

Yep. You've had serious super hero action (Avengers) and you've had comedic super hero action (Guardians).

I'd expect we'll see much more comedic as Marvel matures into theme park fodder for new IP-stoked rides.

 

[Sorcerer Mickey]

Let’s see the next movie after Thor 4 is, Wakanda Forever that has everyone on the creative and acting side coming back with one horrible tragic exception. Yup sounds like a recipe for that movie to flop .

The Marvels may be shaky but then we get (checking the list) Guardians of at the Galaxy Vol 3 which again has everyone returning and the early buzz on that script is that it is a perfect end to that trilogy.

I think superhero fatigue is going to take a little longer to seep in, we’ve already made it through the riskiest movies financially from phase 4 (Shang-Chi, Eternals) and now we are getting sequels to films that range from record breaking commercialy successful to very good. The only “new” franchises left are the OG Marvel team Fantastic 4 and Blade, who are far more widely known then the properties mentioned above.

You might be right but nothing is a sure bet. Wakanda Forever is tragically missing its lead and the production has been troubled, to say the least.

My concern with the MCU is 1) oversatuation, 2) no current high-stakes, overarching story, and 3) a copy-and-paste story formula particularly for the Disney+ shows.

 

[Touchdown]

You might be right but nothing is a sure bet. Wakanda Forever is tragically missing its lead and the production has been troubled, to say the least.

My concern with the MCU is 1) oversatuation, 2) no current high-stakes, overarching story, and 3) a copy-and-paste story formula particularly for the Disney+ shows.

You must not be super familiar with comics, there is an overarching story/threat but much like phase 1 it hasn’t been telographed yet. Multiverses, the sacred timeline getting destroyed and incursions happening mean only one thing: Secret Wars. Our heroes and villains are going to battle another universe’s heroes and villains in order to save their reality. I doubt we are going to get doppelgängers fighting doppelgängers like in the comics especially when there is (litterally) a near universe of characters that have not been folded into the MCU: the X-Men. Having the mutant world get destroyed but having those residents become part of 616 Earth would be a very easy way to bring them in. It also allows Secret Wars to borrow elements of X-Men vs Avengers. Of course it took 20+ movies to build to Infinity War so it’s hard to forget how slow things started. Thanos doesn’t appear until the end of the first Avengers Movie.

Edited to add, this scenario would also give a very good reason why X-men are hated by the public and heroes loved, they would be universe aliens/immigrants.

 

[doctornick]

Just to clarify... the valuation of Hulu will be set by an arbitrator. But Disney guaranteed the minimum value would be $27.5B for the whole of Hulu. So, Disney would owe Comcast at least $9.17B for the remainder of the company.

That being said, Hulu does have some value and it seems possible if not even likely that Disney will roll it into Disney+ in the US the way they use Star in other countries. Or they may leave it as it. Or something in between (possible leaving Hulu as a "live TV" option but rolling the streaming content into D+).

Or heck if they have financial issues with the extra cost, nothing saying they couldn't just sell Hulu to another company.