Walt Disney Company to Keep ESPN in Its Portfolio

July 8, 2022

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Disney Stock Intrinsic Value – As one of the most venerable and well-known media companies in the world, the Walt Disney Company ($NYSE:DIS) has a lot riding on its ability to keep up with the times and remain relevant in an ever-changing landscape. So when reports emerged last fall that Disney was considering spinning off its ESPN sports network, it sent shockwaves through the industry. Now, however, it seems those reports were premature, and Disney is no longer considering such a move. According to Dylan Byers of Puck News, sources close to the company say that Disney chief Bob Chapek has abandoned any effort to sell ESPN. This change of heart comes as traditional media companies are rethinking their strategies in the wake of Netflix’s 2022 fall.

When Netflix was zooming, the view on linear TV offerings like Disney and Warner Bros. Discovery were that their linear TV offerings were a drag on multiples that needed to be “more like Netflix.” However, with Netflix’s recent struggles, traditional media companies are starting to look more attractive again. Do you think this will affect WALT DISNEY COMPANY market and earnings in the long term? It’s hard to say for sure, but it seems like a smart move for Disney in the short-term. Only time will tell how it will affect the company’s bottom line in the long run.

Market Reaction

On Thursday, the Walt Disney Company’s stock opened at $96.9 and closed at $97.4, up by 1.4% from the previous day’s closing price of $96.1. This was likely due to investors reacting positively to the company’s recent announcement of its new streaming service, Disney+.

VI Analysis – Disney Stock Intrinsic Value

The Walt Disney Company is a global entertainment company with operations in various businesses, including media networks, parks and resorts, studio entertainment, and consumer products. The company’s fundamentals reflect its long term potential, below analysis on The Walt Disney Company are made simple by VI app. Disney Stock Intrinsic Value is around $160.6, calculated by VI Line. Now The Walt Disney Company stock is traded at $97.4, undervalued by39%.

disney stock intrinsic value


The news was met with a positive reaction from investors, with the stock price rising by 1.4% the following day. There are a number of reasons why Disney decided to keep ESPN. Firstly, the network still generates a huge amount of revenue, despite its recent struggles. Secondly, ESPN is one of the most valuable assets in Disney’s portfolio, and selling it would have been a major divestment. It is clear that investors are pleased with Disney’s decision to keep ESPN, and the stock price reflects this. It is likely that the network will continue to be a major part of Disney’s business in the years to come.

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