Disney Counters Apple And Amazon In Sports Rights With NFL's ESPN Stake Deal, Analyst Predicts
Portfolio Pulse from Anusuya Lahiri
Walt Disney Co (DIS) is in talks with the NFL to give the league a minority stake in ESPN. Needham analyst Laura Martin believes this could add value to both parties but emphasizes the final deal terms are crucial. Martin maintains a Hold rating on Disney and predicts the deal could help Disney compete with Amazon (AMZN) and Apple (AAPL) for sports rights by offering equity instead of just cash. She maintains her Q1 2024 revenue estimate for Disney at $24.2 billion but lowers adjusted EPS estimates by 16% to $1.02. DIS shares saw a slight increase of 0.64% to $90.94.
January 16, 2024 | 5:54 pm
News sentiment analysis
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NEUTRAL IMPACT
Apple, similar to Amazon, could be indirectly impacted by Disney's ESPN stake deal with the NFL, potentially influencing the market for sports rights.
Apple's position in the sports rights acquisition market could be affected by Disney's negotiations with the NFL, but the indirect nature of this impact and the absence of specific details regarding Apple's response result in a neutral score.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Amazon, a competitor in sports rights acquisition, is indirectly affected by Disney's potential deal with the NFL, which could alter the competitive landscape.
While Amazon is not directly involved in the deal, any changes in the sports broadcasting rights landscape could impact Amazon's strategy and position. However, the lack of specific details regarding Amazon's involvement leads to a neutral score.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Disney is negotiating a deal with the NFL for a minority stake in ESPN, which could save cash and secure sports rights, aligning with NFL interests. Analyst maintains a Hold rating with mixed financial projections.
The potential deal with the NFL could be seen as a strategic move to enhance Disney's competitive position in sports broadcasting, which may be viewed positively by investors. The Hold rating by the analyst suggests a cautious outlook, but the slight uptick in stock price indicates a modest positive market reaction.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90