Disney (DIS) – Miscellaneous – February 17, 2024
Nelson Peltz again sent a critical letter to Disney based on its planned ESPN streaming product and Epic Games investment. The more I learn about his opinion on Disney, the more confident I grow that Peltz is out of his lane. Maybe he should take a look at rapidly recovering profitability and expanding streaming margins before he says Disney can’t turn things around. Maybe he should back his opinions up with evidence rather than being the loudest (and least qualified board applicant) in the room. It was one thing to lash out before they showed signs of making better decisions… but now those better decisions are clearly being made. The company is clearly turning things around; leave them alone, Nelson.
Disney signed a 6 year, $7.8 billion extension to be the home of the 12 team College Football Playoff through 2032. Two things are true: First, these are necessary expenses to win the hearts and budgets of streamers in an increasingly competitive world. College football is second to only the NFL in terms of fandom in the U.S. We love our football (Go Blue). Secondly, the price tag tells us exactly why it needs to partner with the NFL, Warner Brothers and others for ESPN. These partnerships will help with distribution, diminish bidding competition and allow Disney to sustainably win more of these contracts over the long haul. Still, I’d love for them to partner with Amazon, Google, Apple or Verizon to offer more distribution fire power.
