Iger Slams The Brakes On New M&A
General News | Nov 15, 2024 | EIN
Bob Iger, CEO of Walt Disney Co., announced that Disney will not pursue further mergers and acquisitions, highlighting that the company does not require more assets to compete in the current media landscape. This announcement comes amidst Comcast's plans to spin off its NBCU Cable Networks. Iger referenced Disney's previous successful acquisition of 20th Century Fox assets, driven by streaming needs, which has now led Disney to secure approximately 174 million global subscribers. Disney's CFO, Hugh Johnston, also indicated no intentions for divestitures, asserting no value-creation seen in such moves. Disney's Q4 earnings were uplifted by gains in streaming, box office, and parks, showing a 6% YoY revenue growth to $22.57 billion, slightly above analyst forecasts. Meanwhile, Comcast revealed a revenue decline but beat analyst predictions, and announced its spin-off intentions during their earnings call. Disney's shares saw a rise following the earnings release, while Comcast's shares fell slightly.
Sectors
- Media & Entertainment
- Telecommunications
Geography
- United States – Both Disney and Comcast are major American companies and the developments discussed pertain to their operations in the U.S.
Industry
- Media & Entertainment – The article discusses companies involved in media, entertainment, and broadcasting, particularly highlighting Disney's streaming and media assets strategy.
- Telecommunications – Comcast's involvement in cable networks and their spinoff plan indicates the relevance of the telecommunications industry.
Financials
- $22.57 billion – Disney's reported Q4 revenue, which represents a 6% YoY growth.
- $32.07 billion – Comcast's reported revenue at the time, showing a 6.5% YoY decline.
- $109.12 – Disney's stock closing price on Thursday, which was a 6.23% gain.
- $108.50 – Disney's stock price in after-hours trading.
- $43.48 – Comcast's stock closing price on Thursday, which declined by 0.98%.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Walt Disney Co. | Target Company | Company | An American diversified multinational mass media and entertainment conglomerate. |
| Comcast Corp. | Company with Potential Divestment | Company | An American telecommunications conglomerate planning to spin off its NBCU Cable Networks. |
| Robert A. Iger | CEO of Disney | People | CEO of Walt Disney Co., who stated Disney does not need further M&A. |
| Hugh Johnston | CFO of Disney | People | Disney's Senior Executive Vice President and CFO, who rejected divestiture ideas. |
| John Hodulik | Analyst | People | UBS analyst who questioned Disney's M&A strategy during the earnings call. |
| Mike Cavanagh | President of Comcast | People | President of Comcast who announced the spinoff plans for NBCU Cable Networks. |