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

[monothingie]

It began with the Fox acquisition. Big chunks of cable infrastructure were sold off or decommissioned for Disney and Comcast and Sky (mostly in Europe). If the new shiny things weren't applicable to streaming, it was trashed.

The difference is that the 21CF acquisition wasn't a fire sale. If anything they significantly overpaid for the whole only to have Disney give the various parts away later.

This is interesting because Comcast is lumping in well known assets (CNBC, USA, MSNBC, etc.) in. Yes they may be loosing money, like most of linear, but these are first tier properties, some of which are very tightly integrated into the flagship NBC.

Now that Comcast moved first with this, does Disney copy them? My gut is that this gives Iger the cover and framework to jettison ABC and related money loosing linear TV properties. But it seems like the whole mad rush to ditch linear TV is like throwing the baby out with the bathwater, especially considering the people pushing it are the same that never thought the streaming bubble popping could occur.

 

[BrianLo]

Now that Comcast moved first with this, does Disney copy them? My gut is that this gives Iger the cover and framework to jettison ABC and related money loosing linear TV properties. But it seems like the whole mad rush to ditch linear TV is like throwing the baby out with the bathwater, especially considering the people pushing it are the same that never thought the streaming bubble popping could occur.

As I mentioned Disney seems to lack a broad umbrella to dump (accounting for Comcast retaining NBC/Bravo). It’s really only A&E. But they’ve firmly swung around to ABC, FX, Disney Channel and Nat Geo being content and brand suppliers to streaming.

 

[Nevermore525]

As I mentioned Disney seems to lack a broad umbrella to dump (accounting for Comcast retaining NBC/Bravo). It’s really only A&E. But they’ve firmly swung around to ABC, FX, Disney Channel and Nat Geo being content and brand suppliers to streaming.

Yep, everything is basically providing content to their streaming services at the moment. ESPN could probably be spun off to its own thing if they wanted to, but there’s not a need to either.

 

[monothingie]

As I mentioned Disney seems to lack a broad umbrella to dump (accounting for Comcast retaining NBC/Bravo). It’s really only A&E. But they’ve firmly swung around to ABC, FX, Disney Channel and Nat Geo being content and brand suppliers to streaming.

NBCUniversal/Spinco apparently setup a framework to allow seamless content integration between the various properties even after they've left the NBCUniversal umbrella, so I'm sure Disney can figure out content creation and licensing rights post sale.

 

[Nevermore525]

Just a note TWDC just had its best 4Q OI since Fiscal 2018 at $15.6B. Peak OI for the company was from Q4FY15-Q3FY16 at $16.23B

 

[monothingie]

Just a note TWDC just had its best 4Q OI since Fiscal 2018 at $15.6B. Peak OI for the company was from Q4FY15-Q3FY16 at $16.23B

Achieved through price increases.

 

[BrianLo]

Just a note TWDC just had its best 4Q OI since Fiscal 2018 at $15.6B. Peak OI for the company was from Q4FY15-Q3FY16 at $16.23B

This aligns with my rapid fire flipping through the quarterlies when linear seemed to start its decline (15/16). DTC should start eclipsing its revenue shortly and OI within a year or two. 2015/16 is when peak handwringing was occurring over ESPN. Iger was frequently being peppered with questions about ESPN while trying to talk about Shanghai Disney.

It’s certainly a good explanation for why the stock is flat over a decade and technically deserves to be. It’s priced correctly. The Chapek streaming bubble was really the speculative nonsense.

I know everyone has their opinions, but if the current trends continue the company should finally start to climb again in the market decade on decade. But no denying it is absolutely a lost decade.

 

[Nevermore525]

This aligns with my rapid fire flipping through the quarterlies when linear seemed to start its decline (15/16). DTC should start eclipsing its revenue shortly and OI within a year or two. 2015/16 is when peak handwringing was occurring over ESPN. Iger was frequently being peppered with questions about ESPN while trying to talk about Shanghai Disney.

It’s certainly a good explanation for why the stock is flat over a decade and technically deserves to be. It’s priced correctly. The Chapek streaming bubble was really the speculative nonsense.

I know everyone has their opinions, but if the current trends continue the company should finally start to climb again in the market decade on decade. But no denying it is absolutely a lost decade.

It’s funny to go back through the comparison of stock price to their operating income. The stock price peaked when the company was at its lowest in decades in terms of profit while the parks and streaming were losing $$ at the time and linear was the only thing in the black.

 

[Stripes]

The difference is that the 21CF acquisition wasn't a fire sale. If anything they significantly overpaid for the whole only to have Disney give the various parts away later.

Having control of Hulu, 20th Century, and FX are, in my view, vital for the success of Disney’s streaming service.

Disney bid up the price of Sky so Comcast would overpay for those assets, which have been terrible. Will Disney try to sell some of their cable channels to the Comcast spinoff? Perhaps. Consolidation will increase short-term profits but accelerate the rate of cord cutting.

 

[monothingie]

Having control of Hulu, 20th Century, and FX are, in my view, vital for the success of Disney’s streaming service.

Hulu is the only reason why Disney PVOD showed a $350M gain. The success sure isn't coming from D+ directly. The main problem Disney has, is that they can not control content cost and if Iger's hot mic moment comment at the last earning call is true, their AVOD numbers are disappointing at best.

Disney bid up the price of Sky so Comcast would overpay for those assets, which have been terrible.

Still not as bad as Disney overpaying for 21CF while Brian Roberts was laughing on side at Bob.

 

[Stripes]

Hulu is the only reason why Disney PVOD showed a $350M gain. The success sure isn't coming from D+ directly.

Evidence? I’m not sure how you can be so sure considering domestic Disney+ subscriptions grew by 6 million more than Hulu’s did in FY2024.

Still not as bad as Disney overpaying for 21CF while Brian Roberts was laughing on side at Bob.

The only assets that I’d be looking to dump ASAP are the Sky assets, which are exactly the ones Brian Roberts was suckered into paying a fortune for.

 

[BrianLo]

Still not as bad as Disney overpaying for 21CF while Brian Roberts was laughing on side at Bob.

I disagree. I really don’t feel like Comcast came out well, either. Disney was in the odd position where they clearly were bid up to overpay, but then offloaded half the assets for an equally elevated price. Comcast merely bought an asset for an elevated price and missed out on the one it probably needed (Hulu). Depending on final Hulu valuation, Disney may have walked away with Fox’s third for a relative steal.

Both companies were hurt by Roberts. There was nothing he has to gloat about.

 

[Nevermore525]

D+ annual Revenue per the 10-K approximately $10.6B, D+ production costs $5.5B

Hulu annual revenue approximately $12.3B, Hulu production costs $8.6B

 

[Nevermore525]

D+ annual Revenue per the 10-K approximately $10.6B, D+ production costs $5.5B

Hulu annual revenue approximately $12.3B, Hulu production costs $8.6B

Just to add comparison to fiscal 2023:

D+ Revenue $8.9B, production costs $5.7B

Hulu Revenue $11.4B, production costs $8.3B

 

[monothingie]

Evidence? I’m not sure how you can be so sure considering domestic Disney+ subscriptions grew by 6 million more than Hulu’s did in FY2024.

The carriage deal with Charter resulted in a higher number of subscribers to D+. (6M) Albeit as wholesale subscriber accounts with a much lower ARPU.

The only assets that I’d be looking to dump ASAP are the Sky assets, which are exactly the ones Brian Roberts was suckered into paying a fortune for.

How much more did Rupert get for 21CF because Brian played Iger’s ego?

 

[monothingie]

I disagree. I really don’t feel like Comcast came out well, either. Disney was in the odd position where they clearly were bid up to overpay, but then offloaded half the assets for an equally elevated price. Comcast merely bought an asset for an elevated price and missed out on the one it probably needed (Hulu). Depending on final Hulu valuation, Disney may have walked away with Fox’s third for a relative steal.

Both companies were hurt by Roberts. There was nothing he has to gloat about.

This dates back to before the Hulu buyout. This was during the bidding war for 21CF where Disney overpaid by close to $20+B.

 

[Stripes]

The carriage deal with Charter resulted in a higher number of subscribers to D+. (6M) Albeit as wholesale subscriber accounts with a much lower ARPU.

ARPU went up by 2.66% for domestic Disney+ in FY24.

How much more did Rupert get for 21CF because Brian played Iger’s ego?

Rupert got a lot more Disney stock and became Disney’s 2nd largest shareholder which could very well come in handy over the next 4 years.

 

[Stripes]

This dates back to before the Hulu buyout. This was during the bidding war for 21CF where Disney overpaid by close to $20+B.

Didn’t Comcast bid $65 billion? So you’re saying Comcast would have overpaid by $14 billion?

I think, in the end, Disney has gotten their money’s worth out of 21CF. And due to the strength of those assets they are uniquely well positioned in the future.

 

[monothingie]

Didn’t Comcast bid $65 billion? So you’re saying Comcast would have overpaid by $14 billion?

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.

I think, in the end, Disney has gotten their money’s worth out of 21CF. And due to the strength of those assets they are uniquely well positioned in the future.

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?

 

[BrianLo]

This dates back to before the Hulu buyout. This was during the bidding war for 21CF where Disney overpaid by close to $20+B.

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.