|Disney stock drops with big quarterly losses in unexpected sectors.|
Posted by: LateForLunch ® |
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The infamous leftist-infested Disney corporation is trying to cap on $71 billion acquisition of Fox Entertainment from Newscorp, and the Star Wars acquisition from George Lucas.
They failed in both cases. Record-setting BO for Star Wars and other films were offset by failures of huge investments in Star Wars themed Disneyland Anaheim park and Florida Disney World park fell far short. Also one of the big budget movies they released simply lost money internationally.
With all of that the stock lost about a $0.35 per share which is seen as a lot because it was so far below estimates.
It's starting to look like both Newscorp and Lucasfilms were smart to divest when they did.
What is not in the Fox acquisition figures for Disney is of course that the massive annual expenditure Newscorp made (multi-billion dollar) in production and related costs for movies, etc., left them cash rich (to say the least).
Meanwhile Disney has the capital outlay of payments to Newscorp, PLUS the additional costs of production for their new film division, PLUS they had to absorb the losses in projected revenue from the theme-parks/failed big-budget films.
Their stock was still up but WAAAAY short of estimates by enough that Wall Street will be watching them as the next quarter rolls around. heh
Buy low, sell high. That's the way to do it, Bob.
Modified by LateForLunch at Wed, Aug 07, 2019, 20:01:25
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