It seems the Walt Disney Company is having a terrible, horrible, no good, very bad year as their stock keeps dropping. It’s finally dipped below $80 a share, hitting $79.75 as of this morning. Currently is trending upwards again and will likely go back up over $80.
This comes after news that Disney and Comcast have moved up the timetable for Disney’s buyout of Hulu. The valuation will likely be higher than the floor price of $27.5 billion set in 2019. It will cost the Walt Disney Company at least $9 billion and likely more at a time when they are seeing shrinking returns on movies, streaming, and theme parks.
Disney is also under fire for the fiasco with Charter Spectrum and the removal of services during major sporting events.
Then, yesterday, an article came out from CNBC spilling the tea about what allegedly happened behind the scenes of the CEO shift between Bob Iger and Bob Chapek. If true it paints a picture of Bob Iger trying to keep control and former Disney Board Chairman Susan Arnold as being a reason Disney went against the state of Florida and landed them the loss of the Reedy Creek Improvement District. All of this was blamed solely on Bob Chapek before the article was released.
Two lawsuits have already been filed by investors against Disney executives, past and present, over the alleged shuffling of finances to make the Disney+ streaming service appear more successful. They are also upset that Disney leadership has bundled services to attract more subscribers but at lower revenue per subscriber.
As the stock plummets and more stories about leadership struggles behind the scenes come out, it’s very probable that more investor lawsuits will follow.
The stock could go back up above $79 if people buy the dip, but the fact that it dropped below $80 is not good for the House of Mouse. But it is important to note that the market has seen a drop overall and other stocks are also declining.
Still not a good look for the Walt Disney Company
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