On Thursday, the Walt Disney Company (NYSE:DIS) made it clear that it has no plans to join the industry's intensifying merger-and-acquisition chatter.
Disney Confident In Its IP Portfolio As Rivals Explore Options
During the company's fourth-quarter earnings call, BofA Securities analyst Jessica Reif Cohen asked whether Disney saw a role for itself in the expected round of media consolidation — especially as competitors face breakups and strategic overhauls.
CFO Hugh Johnston pushed back on the idea, noting that Disney's content strategy over the past decade has already given the company one of the strongest intellectual property libraries in entertainment.
He pointed to past acquisitions such as 21st Century Fox, Lucasfilm and Pixar as the foundation of its current strength.
"We actually feel like we’ve got a great portfolio and we don’t need to do anything," Johnston said, adding that the company does not see a need to pursue additional large-scale deals.
He also said that Disney plans to watch the industry shifts unfold but does not expect to take part in major transactions. "We like the hand that we have right now. So I wouldn’t expect us to participate in making any significant moves."
Paramount, Netflix Also Pump The Brakes On Mega-Deals
Disney's stance comes as several major players across Hollywood temper expectations for large-scale consolidation.
Earlier this week, David Ellison, CEO of the newly combined Paramount Skydance (NASDAQ:PSKY), used his first earnings call to shut down speculation linking the company to potential mergers.
While the studio will remain opportunistic if a deal clearly accelerates its goals, Ellison said there are "no must-haves" on its M&A list.
Netflix Inc. (NASDAQ:NFLX) Co-CEO Ted Sarandos voiced a similar position during the streamer's third-quarter call in October. Sarandos said the company remains focused on building rather than buying.
Disney Posts Mixed Q4 Results
For the quarter, Disney reported adjusted earnings of $1.11 per share, beating expectations of $1.04. Revenue came in at $22.5 billion, flat year over year and slightly below analysts' forecasts of $22.7 billion.
Price Action: Walt Disney Co. closed at $107.61 on Thursday, down 7.77% for the day, with shares dipping another 0.11% to $107.49 in after-hours trading, according to Benzinga Pro.
Benzinga’s Edge Stock Rankings place Disney in the 91st percentile for Growth, reflecting a strong upward trend across short, medium and long-term periods. Click here to learn more about Disney and its peers.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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