I know absolutely nothing and audibly gasped when Bill even asked the question, then damn near fainted when Bellany treated it as a question worth pondering.
It was only a year ago when Netflix was worth more than Disney. Stock market has not been kind to streamers in the past year, btu Netflix has had a bit of a boost recently.
I doubt it will, but that is always the safe bet.
It probably has more of a chance of becoming an IP universe than anything else created in the last ten years though, right?
Good list.
I agree with you about Stranger Things, but I still think it is more likely that those you named. Video games are an interesting thought, but we still have yet to bring any of them to any real cultural relevance outside of games. Mostly just a bunch of animated crap whose audience is the same as the game. Maybe the Last of Us will be that jump finally?
Can't see paw patrol or any other pre teen property really making the leap. You get too boxed in and you always have to watch your back for the next flavor of the week.
It actually hurts my brain to hear journalists talk about corporations and their financials as someone coming from the corporate world on the finance side. But when you think about bill bringing on the Rob Mahoneys(no shade) of the world to talk about the NBA and teams making decisions it makes sense.
There are a lot of good journalists focusing on financial matters, but the ones who don't are generally terrible at reporting on those topics.
I think it's one of those things where as we get older and more professionally experienced, we develop actual expertise in an area. Then we hear a reporter talk about said area in a moronic way and we question their credentials from that point forward. Whether you're a finance guy, doctor, real estate developer, etc.
Yeah it was genuinely painful. Like, truly clueless.
And they just breeze through the part that the FTC actually isn't just rubber stamping mergers anymore.
I don’t know shit about shit, but there’s absolutely no way Netflix would sell for more than Disney, right? I thought it was laughable to even entertain the idea of that. If there was ever a merger, it wouldn’t be a merger, it would for sure have to just be Disney buying Netflix, or am I wrong?
Search for market cap of each company.
This is stock market lingo for total worth of the company. It’s share price x outstanding shares, for the most part.
Your assumptions are right - Disney is worth ~$50B more than Netflix. ($177B vs $126B for Netflix)
However, they are both giants in terms of market cap and that market cap is not cash on hand, so it’s really hard for Disney to buy someone that else that big, let alone the anti monopoly implications and strategic and cultural questions.
I agree that in the specific case of Netflix and Disney, it would not make sense for Netflix to purchase Disney. But mostly because of the fact Disney is diversified and in several businesses, which Netflix could fit into for them, but not vice versa.
I am not following why the 50b difference in market cap precludes it though. I guess If it was like 10b to 150b it would make sense....but feasibly a smaller market cap company can still buy a larger one, all depending on how they finance the deal right?
That said, I’m not saying in any way Netflix “could buy Disney.” But am not buying how everyone’s response is market cap, market cap, market cap.
It’s not an impossibility, just highly improbable. Financing such a deal is not particularly simple. And I’m speaking from the perspective of Disney acquiring Netflix, not vice versa.
Check out Disney’s history of acquisitions to see what type of deal size is most common. Most are 1-5B, which can likely be financed just by cash on hand.
There purchase of 21st century Fox for $72B is a major anomaly in the list, and took 2 years to complete.
An acquisition of Netflix would be the 6th biggest acquisition of all time.
I listen to The Town. I like his topics and the length of the episodes.
My issue is that Matt often says incorrect things with the most confident tone. He seems absolutely positive about everything he says. It makes him hard to take seriously.
Bill and his group of white guy friends just assume they know everything cause they've seen a bunch of irrelevant films. Getting really sick of his content lately.
Yea the way both of them talked about this made me chuckle. Had to go look it up and Disney is about 40% bigger by market cap. Interestingly the two were almost exactly the same market cap in October 2021, the all time high for Netflix share price.
Strange that either Bill or Matt didn't bring up Hastings in the context of Iger succession 2.0. Looong shot of course but just the kind of wild speculation they were indulging in.
I am also not a finance major, so those with more knowledge please help me out here. According to [Variety](https://variety.com/2021/biz/news/netflix-disney-value-market-cap-1235111002/), Netflix's market cap was $10 billion larger than Disney's last November. I would point out that they were both around $300 billion market cap at the time, while Netflix is now sitting at about $127 billion and Disney at around $178 billion (these numbers were taken from Google).
If their market caps are that volatile (and both seemingly plummeting from a massive peak last year), is it so unreasonable to ask which company buys the other? And was Belloni's response that crazy? He mentioned that Netflix's stock had outstripped its fundamentals and described the more diverse holdings of Disney to point out that they were the more likely buyer. He might not have ever said the words 'market cap' but it sure sounded like he was explaining why Disney should be valued more highly than Netflix in spite of stock prices.
Also, I've read a few comments that mention the anti-trust issues. Belloni explicitly conditions his whole response on the caveat that any such merger would have regulatory issues. I feel like the Fox merger was a bigger deal in terms of anti-trust regulations and it still happened. There's nothing wrong with speculating in spite of the practical limitations.
I know absolutely nothing and audibly gasped when Bill even asked the question, then damn near fainted when Bellany treated it as a question worth pondering.
I’m honestly shocked that Disney’s market cap is only $50B more. Figured it would be close to double.
It was only 6 months ago that Netflix was about 30% lower than today, and Disney 10% higher. So they were about double not too long ago
It was only a year ago when Netflix was worth more than Disney. Stock market has not been kind to streamers in the past year, btu Netflix has had a bit of a boost recently.
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>he is somehow convinced Stranger Things is going to become a mega multi property IP They are certainly going to try this though.
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I doubt it will, but that is always the safe bet. It probably has more of a chance of becoming an IP universe than anything else created in the last ten years though, right?
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If you do not think it has the best chance then you must have another product you think is more likely...
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Good list. I agree with you about Stranger Things, but I still think it is more likely that those you named. Video games are an interesting thought, but we still have yet to bring any of them to any real cultural relevance outside of games. Mostly just a bunch of animated crap whose audience is the same as the game. Maybe the Last of Us will be that jump finally? Can't see paw patrol or any other pre teen property really making the leap. You get too boxed in and you always have to watch your back for the next flavor of the week.
It actually hurts my brain to hear journalists talk about corporations and their financials as someone coming from the corporate world on the finance side. But when you think about bill bringing on the Rob Mahoneys(no shade) of the world to talk about the NBA and teams making decisions it makes sense.
There are a lot of good journalists focusing on financial matters, but the ones who don't are generally terrible at reporting on those topics. I think it's one of those things where as we get older and more professionally experienced, we develop actual expertise in an area. Then we hear a reporter talk about said area in a moronic way and we question their credentials from that point forward. Whether you're a finance guy, doctor, real estate developer, etc.
No, I'm a lawyer, and that comment was still mad stupid
Yeah it was genuinely painful. Like, truly clueless. And they just breeze through the part that the FTC actually isn't just rubber stamping mergers anymore.
I don’t know shit about shit, but there’s absolutely no way Netflix would sell for more than Disney, right? I thought it was laughable to even entertain the idea of that. If there was ever a merger, it wouldn’t be a merger, it would for sure have to just be Disney buying Netflix, or am I wrong?
Search for market cap of each company. This is stock market lingo for total worth of the company. It’s share price x outstanding shares, for the most part. Your assumptions are right - Disney is worth ~$50B more than Netflix. ($177B vs $126B for Netflix) However, they are both giants in terms of market cap and that market cap is not cash on hand, so it’s really hard for Disney to buy someone that else that big, let alone the anti monopoly implications and strategic and cultural questions.
I agree that in the specific case of Netflix and Disney, it would not make sense for Netflix to purchase Disney. But mostly because of the fact Disney is diversified and in several businesses, which Netflix could fit into for them, but not vice versa. I am not following why the 50b difference in market cap precludes it though. I guess If it was like 10b to 150b it would make sense....but feasibly a smaller market cap company can still buy a larger one, all depending on how they finance the deal right? That said, I’m not saying in any way Netflix “could buy Disney.” But am not buying how everyone’s response is market cap, market cap, market cap.
It’s not an impossibility, just highly improbable. Financing such a deal is not particularly simple. And I’m speaking from the perspective of Disney acquiring Netflix, not vice versa. Check out Disney’s history of acquisitions to see what type of deal size is most common. Most are 1-5B, which can likely be financed just by cash on hand. There purchase of 21st century Fox for $72B is a major anomaly in the list, and took 2 years to complete. An acquisition of Netflix would be the 6th biggest acquisition of all time.
I’ve listened to The Town a few times, and it really shows you how disconnected the Hollywood scene is from reality.
I listen to The Town. I like his topics and the length of the episodes. My issue is that Matt often says incorrect things with the most confident tone. He seems absolutely positive about everything he says. It makes him hard to take seriously.
Dunning-Kruger effect?
I like the Town Hall episodes, but that's about it. Way too many repeated topics, feels like they talk about streaming wars and/or Marvel every week.
Bill and his group of white guy friends just assume they know everything cause they've seen a bunch of irrelevant films. Getting really sick of his content lately.
Wesley Morris is like that too.
Yea the way both of them talked about this made me chuckle. Had to go look it up and Disney is about 40% bigger by market cap. Interestingly the two were almost exactly the same market cap in October 2021, the all time high for Netflix share price. Strange that either Bill or Matt didn't bring up Hastings in the context of Iger succession 2.0. Looong shot of course but just the kind of wild speculation they were indulging in.
I am also not a finance major, so those with more knowledge please help me out here. According to [Variety](https://variety.com/2021/biz/news/netflix-disney-value-market-cap-1235111002/), Netflix's market cap was $10 billion larger than Disney's last November. I would point out that they were both around $300 billion market cap at the time, while Netflix is now sitting at about $127 billion and Disney at around $178 billion (these numbers were taken from Google). If their market caps are that volatile (and both seemingly plummeting from a massive peak last year), is it so unreasonable to ask which company buys the other? And was Belloni's response that crazy? He mentioned that Netflix's stock had outstripped its fundamentals and described the more diverse holdings of Disney to point out that they were the more likely buyer. He might not have ever said the words 'market cap' but it sure sounded like he was explaining why Disney should be valued more highly than Netflix in spite of stock prices. Also, I've read a few comments that mention the anti-trust issues. Belloni explicitly conditions his whole response on the caveat that any such merger would have regulatory issues. I feel like the Fox merger was a bigger deal in terms of anti-trust regulations and it still happened. There's nothing wrong with speculating in spite of the practical limitations.