Disney’s streaming services seem to be going well for the company as they believed to be worth over $100B alone.
According to a new estimate by Barclay’s, the company is currently worth over $320B and nearly a third of that is thanks to Disney+, Hulu, and ESPN+. Barclay got this number by calculating Disney’s Enterprise value from its core businesses and then subtracting that from its entire worth. Enterprise, in this case, is a value measure that combines market cap with short and long term debt.
According to this calculation, Disney’s core businesses made up over $213B of its value. This value comes from Disney’s more traditional sources such as the films it produces, theme parks and so on. This, however, leaves over $107B-$108B to be accounted for which seems to come from Disney’s streaming services.
This means that Disney’s streaming services are now a major rival to that of the streaming titan, Netflix. The company took well over twelve years to reach the value that Disney’s streaming services have achieved in a matter of months. Netflix itself is currently worth $144B and it is not inconceivable that Disney’s streaming services could eventually catch up.
This has no doubt helped contribute to Disney’s current high stock prices. The price of a single piece of Disney stock has raised by 30% since last year with the stock value taking a huge jump since Disney+ launched late last year. Whether or not it will be able to maintain this level of growth, however, has yet to be determined.
What do you all make of this news? Do you think Disney’s streaming services worth over $100B? What could this possibly mean for other streaming services? Let us know what you think in the comments below!
Source: CNBC
