The Walt Disney Company Analysis

Walt Disney founded his namesake company in 1923, and since then the business has gone on to become one of the most iconic brands on earth. Today, Walt Disney (DIS) is a leading entertainment company with over $55 billion in revenue. The company is highly diversified and vertically integrated, with four major business segments:

- Media Networks (41% of sales, 30% of profits): TV programming (ABC TV and cable channels like A&E, History, Lifetime and ABC Family, ESPN network), radio (radio Disney, ESPN radio network), eight television stations. In total the company has about 100 Disney-branded television channels, which are broadcast in 34 languages and 162 countries.

- Parks & Resorts (34% of sales, 34% of profits): owns theme parks and resorts around the globe including Walt Disney World In Florida, Disneyland in California, Disney Land Paris, Shanghai, and Hong Kong. Also operates Disney Resort & Spa in Hawaii, the Disney Vacation Club, Adventures by Disney, and the Disney Cruise Line.

- Studio Entertainment (16% of sales, 21% of profits): produces live action and animated films under the Walt Disney Pictures, Walt Disney Animation, Pixar, Marvel, and Lucasfilm (Star Wars, Indiana Jones) studio banners. This segment’s profitability is volatile

  Consumer Products & Interactive Media (9% of sales, 15% of profits): licenses its trade names, characters, and visual and literary properties, develops and publishes mobile games, and sells its products through its own online stores and various retail outlets around the globe.

In December of 2017, Disney announced it was buying the majority of Twenty-First Century Fox (FOXA) in a $66 billion deal. Assuming the deal closes, Disney will be getting all of Fox’s assets (film and TV studios, cable networks, stakes in Hulu and other key assets) except for the Fox Broadcasting network and stations, Fox News Channel, Fox Business Network, FS1, FS2, and the Big Ten Network.

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