Walt Disney’s ESPN Loses Grip on Sports Media Rights

August 25, 2022

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Walt Disney Intrinsic Value – Walt Disney($NYSE:DIS)’s ESPN has been the dominant player in the sports media landscape for decades, but that is changing. Increasing costs for sports rights and commentators are pricing traditional media companies out of the market. Instead, mega-cap tech companies like Apple are poised to take over. This could have a significant impact on Disney’s market share and earnings in the long term. This could lead to fewer viewers and less advertising revenue. While Disney has other businesses that will continue to be profitable, ESPN is a major source of income for the company. Only time will tell how this shift will affect Disney, but it is certainly something to keep an eye on.

Price History

On Wednesday, Walt Disney’s ESPN lost its grip on sports media rights, as the company’s stock opened at $114.7 and closed at $116.4, up by 1.3% from prior closing price of 114.9. This event could have long-term implications for the sports media landscape, as ESPN has been the dominant player in the space for many years. The company has been facing increased competition from digital upstarts in recent years, and this latest development could signal a shift in the balance of power.

VI Analysis – Walt Disney Intrinsic Value

The Walt Disney Company is an American diversified multinational mass media and entertainment conglomerate, headquartered in Burbank, California. It is the largest media conglomerate in the world in terms of revenue, ahead of Comcast and The Walt Disney Company is known for its film and television studios, as well as its theme parks. The company’s fundamentals reflect its long-term potential. The intrinsic value of a Walt Disney share is around $170.5, calculated by VI Line. Now, the stock is traded at $116.4, undervalued by 32%.

Summary

The Walt Disney Company’s ESPN has been the dominant force in sports media for decades, but it is now facing increased competition for sports rights. ESPN is losing its grip on sports media rights, as other companies are willing to pay more for these rights. This is a major concern for Disney, as ESPN is one of its most profitable businesses. ESPN has been losing major sports rights contracts to other companies in recent years. These losses are a direct result of other companies willingness to pay more for these rights. Disney is now faced with the difficult decision of whether to invest more money in ESPN to keep up with the competition, or whether to focus on other areas of its business. This is a major concern for Disney, as ESPN is one of its most profitable businesses. Only time will tell how this situation will play out, but it is clear that Disney is facing a major challenge with its ESPN business.

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