5 Biggest Broadcasting Companies in the World

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1. The Walt Disney Company (NYSE:DIS)

Market Cap: $158.15 billion

The Walt Disney Company (NYSE:DIS) is a global entertainment company that operates a wide range of entertainment outlets. The company is divided into two primary segments: Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences, and Products (DPEP). The DMED section includes the company’s global production and film and episodic television programs distribution. The DPEP division encompasses important lines of business, such as parks and experiences, as well as consumer products. The Walt Disney Company (NYSE:DIS) also creates and publishes novels, comic books, and periodicals and sells branded items through retail, online, and wholesale outlets.

The Walt Disney Company (NYSE:DIS) reported revenue of $67.4 billion in the fiscal year 2021, an increase of 3.1% from $65.3 billion in 2020.

Third Point commented on The Walt Disney Company (NYSE:DIS) in a Q3 2022 investor letter,

As disclosed in our Q2 letter, we reinitiated a significant position in The Walt Disney Company (NYSE:DIS) when the company retested its Covid lows earlier this year. At the current price, Disney is trading for little more than the stand-alone value of its Parks business and a mere 15x ’24 “street” consensus. The company remains early in its Direct to Consumer (“DTC”) transition with a leading market position, and yet the current stock price ascribes negligible value to the streaming business. We believe this is due to questions around the terminal economics of streaming, given large losses being generated today at Disney (>$1 billion dollars last quarter) and stagnating margins at peers such as Netflix. On the last earnings call, management highlighted three items that could lead to an inflection in DTC profitability over the next 12 months: a 38% price increase for Disney+ in the US; moderating growth in cash content expense; and an advertising tier for Disney+ launching in two months that can drive additional ARPU given high demand for the Disney brand amongst advertisers.

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