Subject: ESPN Value
A key headwind for Disney is figuring out what to do with the broadcast assets - and ESPN is the crown jewel there. Iger is on record as saying that he wants some new partners - which could even mean selling off the asset (Apple and Amazon are typically pointed to as potential buyers).
What is ESPN worth?
$50B is thrown around as a potential number, but this article from Baron's - referencing Disney Bear Brandon Nispel suggests it might only be worth $30B.
Revenue : $16B
Operating Margin : low 20s
Earnings : $3.8B
Putting a multiple of 8x earnings on ESPN seems like a pretty bearish position IMO even considering the challenges with cord-cutting.
tecmo
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