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Via Barrons:
According to Lightshed Partners' Analyst Richard Greenfield...
He also believes Disney should consider Roblox as a potential acquisition target.
Source: Barrons
According to Lightshed Partners' Analyst Richard Greenfield...
Selling the company’s 66% stake in Hulu could give Disney at least $18 billion in cash, and nix a business that is losing money as competition among streaming platforms intensifies, he said.
That money could then be reinvested into buying Netflix, Greenfield wrote.
“Disney and Netflix are truly complementary pieces in the streaming puzzle that would dominate the global war for time spent with video,” he wrote. “While linear TV is undoubtedly in secular decline as streaming TV takes over, this combination would be like entering warp speed on the transformation.”
The acquisition could help Netflix turn around its operations and shore up its subscriber loss problems, while giving Disney access to Netflix’s scale, visibility, and international content.
He also believes Disney should consider Roblox as a potential acquisition target.
Another strategic move for Disney would be to make a bid for Roblox (RBLX) — a more digestible asset with a market cap of $13.7 billion, compared with Netflix’s $78.9 billion, Greenfield added. Roblox could be an important stepping stone in helping Disney wade into gaming, and eventually, the metaverse.
Source: Barrons