Main financial assets discussed: Netflix (NFLX), Paramount Global (PARA), Metro-Goldwyn-Mayer (MGM), Lions Gate Entertainment (LGF.A), Warner Bros. Discovery (WBD)
Top 3 key points:
1. Netflix has shown past interest in acquiring film assets from Paramount Global and the MGM library, indicating a potential strategy for the streamer.
2. The company's interest in Paramount suggests a desire to enter the theatrical-exhibition business and diversify its revenue streams.
3. Netflix could consider acquiring Lions Gate Entertainment after the spin-out of the Starz service, which would further enhance its position in the streaming wars.
Recommended actions: **Buy** Netflix on pullbacks, with a practical fair-value buy range between $360 and $405.
- Disney CEO Robert Iger has stated that the company's traditional television business, including ABC and ESPN, may not be core to its future.
- This aligns with the vision of former Disney CEO Bob Chapek, who emphasized putting consumers at the center of every decision and integrating digital and in-person entertainment.
- In September, Disney announced perks for Disney+ subscribers related to theme parks, merchandise, cruise lines, and theatrical movies.
- Chapek was ousted in favor of Iger's return just two months after announcing this ambitious vision.
- Selling the linear networks would leave Disney's future primarily focused on its parks and direct-to-consumer businesses.
Disney's stock is on course to reach its lowest level since 2014, showing a significant drop in market capitalization since Bob Iger returned as CEO, while AMC's stock is falling as investors anticipate its stock conversion.
Amazon is reportedly in talks with Disney to work on the streaming version of ESPN and potentially acquire a minority stake in the sports network.
Disney CEO Bob Iger's search for equity partners for ESPN could result in Amazon acquiring a minority stake in the network to aid in the development of a direct-to-consumer version, joining other potential partners such as the NFL, NBA, MLB, and Verizon.
Disney is in preliminary discussions with Amazon about partnering to stream ESPN and potentially taking a minority financial stake in the sports service, as ESPN considers launching a comprehensive and expensive streaming service costing $20-$35 per month.
Walt Disney has pulled its channels, including ABC stations and ESPN, from Charter Spectrum due to a distribution fee dispute, leaving nearly 15 million subscribers without access to popular programming such as "Jeopardy!" and "Wheel of Fortune."
Disney's TV channels, including ABC, ESPN, FX, and Freeform, have been blacked out on Charter Spectrum, the US's second-largest cable TV provider, impacting millions of subscribers and creating a significant carriage dispute between the two companies.
The battle between Charter Communications and Walt Disney Co. has resulted in Charter's TV subscribers losing access to Disney-owned channels, marking a significant moment in the future of pay TV.
Disney has urged Charter Communications customers to consider switching pay-TV services if they want access to ESPN and other networks, as the carriage dispute between the two companies continues. Disney also highlighted that customers have numerous options, including competing pay-TV providers and TV streaming services.
Over 15 million Charter and Spectrum TV customers were left without ESPN, Disney networks, and ABC due to carriage deal disputes, with Disney suggesting subscribers switch to another service and Charter considering fully removing itself from the pay-TV business.
KeyBanc analyst says that the upcoming disclosure of ESPN's financials by Walt Disney may disappoint investors, suggesting that Disney stock may not be a good buy.
Disney's Linear Networks division, which includes ESPN and other channels, has been struggling with declining viewership and revenue, prompting management to explore strategic alternatives and potential partnerships to transition into a more streaming-oriented business.
Disney stock is experiencing a decline, but it is still considered a good investment despite Charter Communications' request for Disney to reconsider its cable bundle.
Walt Disney Co. and Charter Communications have reached an agreement that restores Disney channels to Charter's pay-TV service, with Charter gaining the ability to offer Disney's ad-supported streaming apps and Disney programming having access to Charter's television service, preserving the cable bundle for now.
The new carriage agreement between Disney and Charter Communications is seen as a win for both parties, with Disney gaining additional revenue through new distribution channels and Charter saving on unwanted linear networks. However, there are concerns about the impact on the broader entertainment industry and the future of linear TV.
Walt Disney CEO Bob Iger is considering options for the company's traditional broadcast and cable businesses, including the potential sale of ABC, as streaming services and declining viewership threaten the future of linear TV.
Walt Disney Co is reportedly in talks with Nexstar Media Group Inc to sell its U.S. TV network ABC, as Disney looks to sell some of its traditional TV assets due to the rise of streaming services.
Byron Allen has submitted a $10 billion offer to Walt Disney Co. to acquire its ABC TV network, local stations, as well as the FX and National Geographic cable channels.
Speculation surrounding the potential sale of ABC by Disney has caused concern among ABC News staffers and raises questions about the future of network TV news.
Disney and Warner stocks receive a bullish boost.
