This has done nothing but confuse me - so are they paying $8.61 this year and taking control of it this year and then doing the appraisal in 2024 to determine if anything else is owed? All the statements prior to this made it sound like it would all be completed this year...very confusing.
DIS Shareholders and Stock Info ONLY
- Thread starter hhisc16
- Start date
They have clearly said that a few times over the course of this year...why say it again in such an unclear way??
clarker99
DIS Veteran
- Joined
- May 15, 2019
- Messages
- 1,120
Disney already has full operational control and take on all the revenues and costs of Hulu. Comcast is essentially getting a free pay day and have not had to spend a dime on Hulu since buying their original stake pre-Disney (someone can correct me if I am wrong).
clarker99
DIS Veteran
- Joined
- May 15, 2019
- Messages
- 1,120
Ha. Iger never directly said but he did intimate on the last earnings call that Hulu is integral to their streaming strategy.
wabbott
DIS Veteran
- Joined
- Aug 4, 2021
- Messages
- 6,448
https://variety.com/2023/digital/news/disney-buys-hulu-stake-comcast-1235776557/
Nov 1, 2023 1:39pm PDT
Disney Expects to Pay Comcast $8.6 Billion to Buy Out Hulu Stake
Disney's ultimate payout to Comcast for the 33% stake in Hulu will depend on bankers' assessment of the streamer's fair equity value
Disney is on the cusp of becoming the 100% owner of Hulu.
The media conglomerate announced that it expects to pay $8.61 billion to Comcast to acquire the cable operator’s 33% stake in Hulu following Comcast’s Nov. 1 exercise of its right under the put/call arrangement between the two companies. Disney owns the other 66% stake in Hulu.
“The acquisition of Comcast’s stake in Hulu at fair market value will further Disney’s streaming objectives,” Disney said in a statement Wednesday.
Under the terms of the sale arrangement, by Dec. 1, Disney said, it anticipates it will pay Comcast approximately $8.61 billion, representing NBCUniversal’s one-third stake of the $27.5 billion guaranteed floor value for Hulu that was set when the companies entered into their agreement in 2019 minus the anticipated outstanding capital call contributions payable by NBCU to Disney of approximately $567 million.
But the deal is not officially done — and $8.61 billion might not be what Disney ultimately pays for the Comcast/NBCU stake in Hulu.
The two sides have been far apart on the question of Hulu’s market value. Comcast CEO Brian Roberts, at a Goldman Sachs conference on Sept. 6, touted Hulu as “a scarce, kingmaker asset” — and suggested an eyebrow-raising value. According to Roberts, the “synergies” Hulu would afford a 100% owner are worth $30 billion, even before accounting for the value of Hulu itself. “If you were selling all of this as is, there’d be a line of bidders around the block to actually buy all the content, all the bundling of Hulu,” Roberts claimed at the time.
Hulu’s equity fair value is being assessed as of Sept. 30, 2023, by bankers enlisted by each side in accordance with the parties’ agreed appraisal process. “If the equity fair value is finally determined to be greater than the guaranteed floor value, Disney will pay NBCU an amount equal to NBCU’s equity ownership percentage of the equity fair value net of the guaranteed purchase price within 45 days of such final determination,” Disney said in a filing with the SEC. “While the timing of the appraisal process is uncertain, we anticipate it should be completed during the 2024 calendar year.”
In addition, according to Disney, the company will share with NBCU 50% of Disney’s estimated U.S. tax savings resulting from the acquisition of the Hulu stake, with payments expected to be made primarily over a 15-year period.
The long-held theory on Wall Street is that Disney has not expanded Hulu outside the U.S. so as not to increase its value — and thus keep a lid on what it would have to shell out to Comcast. Once it owns Hulu outright, Disney will be poised to launch it as a general-entertainment service worldwide.
Nov 1, 2023 1:39pm PDT
Disney Expects to Pay Comcast $8.6 Billion to Buy Out Hulu Stake
Disney's ultimate payout to Comcast for the 33% stake in Hulu will depend on bankers' assessment of the streamer's fair equity value
Disney is on the cusp of becoming the 100% owner of Hulu.
The media conglomerate announced that it expects to pay $8.61 billion to Comcast to acquire the cable operator’s 33% stake in Hulu following Comcast’s Nov. 1 exercise of its right under the put/call arrangement between the two companies. Disney owns the other 66% stake in Hulu.
“The acquisition of Comcast’s stake in Hulu at fair market value will further Disney’s streaming objectives,” Disney said in a statement Wednesday.
Under the terms of the sale arrangement, by Dec. 1, Disney said, it anticipates it will pay Comcast approximately $8.61 billion, representing NBCUniversal’s one-third stake of the $27.5 billion guaranteed floor value for Hulu that was set when the companies entered into their agreement in 2019 minus the anticipated outstanding capital call contributions payable by NBCU to Disney of approximately $567 million.
But the deal is not officially done — and $8.61 billion might not be what Disney ultimately pays for the Comcast/NBCU stake in Hulu.
The two sides have been far apart on the question of Hulu’s market value. Comcast CEO Brian Roberts, at a Goldman Sachs conference on Sept. 6, touted Hulu as “a scarce, kingmaker asset” — and suggested an eyebrow-raising value. According to Roberts, the “synergies” Hulu would afford a 100% owner are worth $30 billion, even before accounting for the value of Hulu itself. “If you were selling all of this as is, there’d be a line of bidders around the block to actually buy all the content, all the bundling of Hulu,” Roberts claimed at the time.
Hulu’s equity fair value is being assessed as of Sept. 30, 2023, by bankers enlisted by each side in accordance with the parties’ agreed appraisal process. “If the equity fair value is finally determined to be greater than the guaranteed floor value, Disney will pay NBCU an amount equal to NBCU’s equity ownership percentage of the equity fair value net of the guaranteed purchase price within 45 days of such final determination,” Disney said in a filing with the SEC. “While the timing of the appraisal process is uncertain, we anticipate it should be completed during the 2024 calendar year.”
In addition, according to Disney, the company will share with NBCU 50% of Disney’s estimated U.S. tax savings resulting from the acquisition of the Hulu stake, with payments expected to be made primarily over a 15-year period.
The long-held theory on Wall Street is that Disney has not expanded Hulu outside the U.S. so as not to increase its value — and thus keep a lid on what it would have to shell out to Comcast. Once it owns Hulu outright, Disney will be poised to launch it as a general-entertainment service worldwide.
HokieRaven5
DIS Veteran
- Joined
- Mar 5, 2020
- Messages
- 7,820
Yeah the article in this thread from June kind of intimated that Comcast hadn’t really paid their share into Hulu and would thus reduce their overall ownership stake and payment as a part of this deal.
So I guess what I said above is how Variety is viewing it too - the asset officially changes hands with the "floor" payment on Dec. 1 and then they determine if anything else is due during 2024. This will be interesting because, if it does change hands on Dec. 1, Disney will have to accrue an estimated 2024 payment for the balance in that quarter - that would tip their hand on exactly what they think the full value is.
I think Iger clearly said they were buying it in that CNBC interview, that news was probably overshadowed by the "hey we might sell ABC" statement.
Also, he said they were looking to fully integrate it in the D+ app at one of the earnings calls earlier this year. And they announced the agreement with Comcast to accelerate the buyout months ago, that was a clear indication that the deal would be done this year.
clarker99
DIS Veteran
- Joined
- May 15, 2019
- Messages
- 1,120
It was definitely intimated
wabbott
DIS Veteran
- Joined
- Aug 4, 2021
- Messages
- 6,448
https://www.cnbc.com/2023/11/01/roku-q3-2023-earnings.html
Roku stock soars on third-quarter revenue beat, solid outlook
Published Wed, Nov 1 20234:42 PM EDT
Drew Richardson@john6andrew
Key Points
Shares of Roku soared in after-hours trading Wednesday after the company reported better-than-expected revenue for the third quarter.
Here’s how Roku performed for the quarter ending Sept. 30, compared to analysts’ estimates from LSEG, formerly known as Refinitiv:
But revenue was up 20% year over year, the company reported, largely driven by “strong performance in content distribution and video advertising, along with unit sales of Roku-branded TVs, which launched in March 2023,” Roku said in a shareholder letter.
Roku-branded smart TV’s come pre-installed with the Roku interface users would experience on an external plug-in Roku Streaming Player. The smart TVs were first made available at Best Buy earlier this year and drove a device segment revenue increase of 33% from the year-ago quarter, the company said during its earnings call Wednesday.
“Branded TVs also drove a higher portion of net adds in active accounts than the streaming players in international markets,” Roku Media President Charlie Collier said during Wednesday’s earnings call.
The company said it fared better during the quarter with advertisements, weathering an industry-wide ad slowdown.
“We had a solid rebound in video ads in the third quarter,” Collier said during the earnings call. “We expect year-over-year growth in the fourth quarter to be similar, but we remain cautious about the ad market recovery going forward.”
Active accounts also beat the Street’s estimates, coming in at 75.8 million for the quarter, compared to StreetAccount estimates of 75.33 million. That’s a net increase of 2.3 million active accounts from the previous quarter.
For the fourth quarter, Roku expects revenue of roughly $955 million, topping the $952 million expected by Wall Street, according to LSEG.
In September, Roku said it was laying off 200 employees in a bid to reduce the company’s year-over-year operating expense growth rate. The move followed rounds of layoffs earlier this year in March and November 2022. The company also committed to various cost-cutting measures including consolidating office space and slowing hiring, CNBC reported at the time.
Roku stock soars on third-quarter revenue beat, solid outlook
Published Wed, Nov 1 20234:42 PM EDT
Drew Richardson@john6andrew
Key Points
- Roku revenue grew 20% year over year in the third quarter and beat Wall Street expectations.
- Active accounts also beat, coming in at 75.8 million for the quarter.
- Roku said it experienced a rebound in video ads during the period.
Shares of Roku soared in after-hours trading Wednesday after the company reported better-than-expected revenue for the third quarter.
Here’s how Roku performed for the quarter ending Sept. 30, compared to analysts’ estimates from LSEG, formerly known as Refinitiv:
- Loss per share: $2.33 vs. $2.12 expected
- Revenue: $912 million vs. $855.2 million expected
But revenue was up 20% year over year, the company reported, largely driven by “strong performance in content distribution and video advertising, along with unit sales of Roku-branded TVs, which launched in March 2023,” Roku said in a shareholder letter.
Roku-branded smart TV’s come pre-installed with the Roku interface users would experience on an external plug-in Roku Streaming Player. The smart TVs were first made available at Best Buy earlier this year and drove a device segment revenue increase of 33% from the year-ago quarter, the company said during its earnings call Wednesday.
“Branded TVs also drove a higher portion of net adds in active accounts than the streaming players in international markets,” Roku Media President Charlie Collier said during Wednesday’s earnings call.
The company said it fared better during the quarter with advertisements, weathering an industry-wide ad slowdown.
“We had a solid rebound in video ads in the third quarter,” Collier said during the earnings call. “We expect year-over-year growth in the fourth quarter to be similar, but we remain cautious about the ad market recovery going forward.”
Active accounts also beat the Street’s estimates, coming in at 75.8 million for the quarter, compared to StreetAccount estimates of 75.33 million. That’s a net increase of 2.3 million active accounts from the previous quarter.
For the fourth quarter, Roku expects revenue of roughly $955 million, topping the $952 million expected by Wall Street, according to LSEG.
In September, Roku said it was laying off 200 employees in a bid to reduce the company’s year-over-year operating expense growth rate. The move followed rounds of layoffs earlier this year in March and November 2022. The company also committed to various cost-cutting measures including consolidating office space and slowing hiring, CNBC reported at the time.
wabbott
DIS Veteran
- Joined
- Aug 4, 2021
- Messages
- 6,448
https://www.nytimes.com/2023/11/01/business/media/disney-hulu-purchase.html
Disney Says It Will Take Full Control of Hulu
The company will pay at least $8.61 billion to Comcast, which owned a 33 percent stake of the popular streaming service.
By Brooks Barnes
Nov. 1, 2023
The tug of war over Hulu is over.
The Walt Disney Company said on Wednesday that it would take full control of Hulu, one of the world’s most popular streaming services, by paying at least $8.61 billion to buy out Comcast, which owned a 33 percent stake. Comcast triggered the deal as part of a “put-call” agreement between the companies in 2019. The ultimate price will be determined by an appraisal process that will drag into next year.
Comcast, which recently stopped supplying Hulu with shows like “Saturday Night Live” and “The Voice,” rerouting them instead to its Peacock streaming service, said in September that it had sped up negotiations to sell Hulu to Disney.
Previously, Comcast and Disney agreed that Comcast could force Disney to buy its stake early next year (the “put”). At the same time, Disney had the ability at that point to require Comcast to sell (the “call”).
“The acquisition of Comcast’s stake in Hulu at fair market value will further Disney’s streaming objectives,” Disney said in a statement. Hulu, which has roughly 48 million subscribers, offers programming from ABC, FX, Fox and other traditional networks, along with original shows like “Only Murders in the Building” and “The Kardashians.”
Comcast said in a statement that it “looked forward to the appraisal process,” which “we expect will reflect the extraordinary value of the business.”
As part of its push to make its flagship Disney+ streaming service profitable, Disney announced this year that content from Hulu would be made available on Disney+ to subscribers of both services in the United States. (Hulu does not operate overseas, while Disney+ does.) Disney plans to roll out this “one app experience” by the end of the year. Hulu will also continue as a stand-alone product, charging $18 for ad-free access and $8 for an ad-supported option.
Founded in 2007, Hulu was for many years the streaming equivalent of Frankenstein’s monster, an emerging start-up backed by 21st Century Fox, NBCUniversal, Disney and Time Warner. They hoped that the shared ownership would make Hulu the streaming equivalent of Switzerland, a communal hedge against the rising power of the internet, but it proved to be an impediment. Disney gained control over Hulu after it bought 21st Century Fox’s entertainment assets in 2019.
Like other big media companies, Disney has been struggling to address investor worries about streaming profitability and the decline of traditional television. Disney shares have been trading at about $81, down from $197 two years ago.
In July, Disney announced that it was exploring a once-unthinkable sale of a stake in ESPN, which has powered much of Disney’s growth over the past two decades. Disney is also selling holdings in India and weighing whether to part with assets like ABC, the Freeform cable channel and a chain of local TV stations.
Benjamin Mullin contributed reporting.
Disney Says It Will Take Full Control of Hulu
The company will pay at least $8.61 billion to Comcast, which owned a 33 percent stake of the popular streaming service.
By Brooks Barnes
Nov. 1, 2023
The tug of war over Hulu is over.
The Walt Disney Company said on Wednesday that it would take full control of Hulu, one of the world’s most popular streaming services, by paying at least $8.61 billion to buy out Comcast, which owned a 33 percent stake. Comcast triggered the deal as part of a “put-call” agreement between the companies in 2019. The ultimate price will be determined by an appraisal process that will drag into next year.
Comcast, which recently stopped supplying Hulu with shows like “Saturday Night Live” and “The Voice,” rerouting them instead to its Peacock streaming service, said in September that it had sped up negotiations to sell Hulu to Disney.
Previously, Comcast and Disney agreed that Comcast could force Disney to buy its stake early next year (the “put”). At the same time, Disney had the ability at that point to require Comcast to sell (the “call”).
“The acquisition of Comcast’s stake in Hulu at fair market value will further Disney’s streaming objectives,” Disney said in a statement. Hulu, which has roughly 48 million subscribers, offers programming from ABC, FX, Fox and other traditional networks, along with original shows like “Only Murders in the Building” and “The Kardashians.”
Comcast said in a statement that it “looked forward to the appraisal process,” which “we expect will reflect the extraordinary value of the business.”
As part of its push to make its flagship Disney+ streaming service profitable, Disney announced this year that content from Hulu would be made available on Disney+ to subscribers of both services in the United States. (Hulu does not operate overseas, while Disney+ does.) Disney plans to roll out this “one app experience” by the end of the year. Hulu will also continue as a stand-alone product, charging $18 for ad-free access and $8 for an ad-supported option.
Founded in 2007, Hulu was for many years the streaming equivalent of Frankenstein’s monster, an emerging start-up backed by 21st Century Fox, NBCUniversal, Disney and Time Warner. They hoped that the shared ownership would make Hulu the streaming equivalent of Switzerland, a communal hedge against the rising power of the internet, but it proved to be an impediment. Disney gained control over Hulu after it bought 21st Century Fox’s entertainment assets in 2019.
Like other big media companies, Disney has been struggling to address investor worries about streaming profitability and the decline of traditional television. Disney shares have been trading at about $81, down from $197 two years ago.
In July, Disney announced that it was exploring a once-unthinkable sale of a stake in ESPN, which has powered much of Disney’s growth over the past two decades. Disney is also selling holdings in India and weighing whether to part with assets like ABC, the Freeform cable channel and a chain of local TV stations.
Benjamin Mullin contributed reporting.
wabbott
DIS Veteran
- Joined
- Aug 4, 2021
- Messages
- 6,448
https://www.barrons.com/articles/di...6a2e6f3?st=utwd1cmvaup7b3h&mod=googlenewsfeed
Disney Is Buying Comcast’s Hulu Stake. The Price Is TBD.
By Eric J. Savitz
Updated Nov 01, 2023, 7:06 pm EDT / Original Nov 01, 2023, 5:56 pm EDT
How much is the streaming service Hulu worth? We’re about to find out.
Walt Disney on Wednesday said that Comcast has exercised its right to sell its one-third stake in the streaming service to Disney, which holds the other two thirds.
But this is a complicated situation, and the precise price of the transaction remains to be determined. Disney said it expects to pay Comcast $8.61 billion by Dec. 1.
Under an agreement signed by the two companies five years ago, both sides had the right to trigger a transaction in which Comcast would sell Disney its minority stake in Hulu. The agreement set a floor valuation for Hulu of $27.5 billion.
Terms of the deal call for Disney to pay Comcast one-third of the floor valuation—less a capital call contribution to Hulu—within 30 days of the exercise of the put.
But that isn’t the end of the story. Under an appraisal process agreed to by both sides, Hulu’s equity fair value will be assessed as of Sept. 30, 2023. And as Disney notes, if that figure is determined to be above the floor value, Disney will have to pay its share of the difference, which could mean billions of dollars more flowing from Disney to Comcast. Disney said it expects the process to be completed in 2024.
The process is convoluted. As disclosed by Comcast in a securities filing in September, both sides will hire bankers to estimate Hulu’s fair value. If the two estimates are within 10% of each other, fair value is calculated as the average of the two figures. If those estimates are farther apart—which seems likely—then the bankers from the two sides together pick a third banker to value the business, and then the fair value will be an average of the two estimates that are closest together.
For months now, Comcast CEO Brian Roberts has made the case that Hulu is worth much more than the negotiated floor value. Speaking at a Goldman Sachs conference in September, Roberts said the business is “way more valuable” than $27.5 billion.
Using Netflix per-subscriber values as a comparable, Hulu would be worth $40 billion, as Barron’s recently wrote, which would mean about $13 billion for Comcast. Hulu, meanwhile, had $10.7 billion in 2022 revenue, a third of Netflix’s. On a comparable revenue basis, Hulu would be worth $65 billion, putting the value of Comcast’s stake above $20 billion.
Comcast has said it would use proceeds from the sale of its Hulu stake to accelerate its stock repurchase program.
“We look forward to the appraisal process and the determination of Hulu’s fair market value which we expect will reflect the extraordinary value of the business,” a Comcast spokesperson said in response to a request for comment on Disney’s press release.
Shares of Comcast and Disney were up 0.1% and 0.5%, respectively, in after-hours trading Wednesday after the announcement.
Write to Eric J. Savitz at eric.savitz@barrons.com
Disney Is Buying Comcast’s Hulu Stake. The Price Is TBD.
By Eric J. Savitz
Updated Nov 01, 2023, 7:06 pm EDT / Original Nov 01, 2023, 5:56 pm EDT
How much is the streaming service Hulu worth? We’re about to find out.
Walt Disney on Wednesday said that Comcast has exercised its right to sell its one-third stake in the streaming service to Disney, which holds the other two thirds.
But this is a complicated situation, and the precise price of the transaction remains to be determined. Disney said it expects to pay Comcast $8.61 billion by Dec. 1.
Under an agreement signed by the two companies five years ago, both sides had the right to trigger a transaction in which Comcast would sell Disney its minority stake in Hulu. The agreement set a floor valuation for Hulu of $27.5 billion.
Terms of the deal call for Disney to pay Comcast one-third of the floor valuation—less a capital call contribution to Hulu—within 30 days of the exercise of the put.
But that isn’t the end of the story. Under an appraisal process agreed to by both sides, Hulu’s equity fair value will be assessed as of Sept. 30, 2023. And as Disney notes, if that figure is determined to be above the floor value, Disney will have to pay its share of the difference, which could mean billions of dollars more flowing from Disney to Comcast. Disney said it expects the process to be completed in 2024.
The process is convoluted. As disclosed by Comcast in a securities filing in September, both sides will hire bankers to estimate Hulu’s fair value. If the two estimates are within 10% of each other, fair value is calculated as the average of the two figures. If those estimates are farther apart—which seems likely—then the bankers from the two sides together pick a third banker to value the business, and then the fair value will be an average of the two estimates that are closest together.
For months now, Comcast CEO Brian Roberts has made the case that Hulu is worth much more than the negotiated floor value. Speaking at a Goldman Sachs conference in September, Roberts said the business is “way more valuable” than $27.5 billion.
Using Netflix per-subscriber values as a comparable, Hulu would be worth $40 billion, as Barron’s recently wrote, which would mean about $13 billion for Comcast. Hulu, meanwhile, had $10.7 billion in 2022 revenue, a third of Netflix’s. On a comparable revenue basis, Hulu would be worth $65 billion, putting the value of Comcast’s stake above $20 billion.
Comcast has said it would use proceeds from the sale of its Hulu stake to accelerate its stock repurchase program.
“We look forward to the appraisal process and the determination of Hulu’s fair market value which we expect will reflect the extraordinary value of the business,” a Comcast spokesperson said in response to a request for comment on Disney’s press release.
Shares of Comcast and Disney were up 0.1% and 0.5%, respectively, in after-hours trading Wednesday after the announcement.
Write to Eric J. Savitz at eric.savitz@barrons.com
Iger needs to solve and finalize all issues on the table So he can retire with respectability and new book deal.
Please Do Not sell Disney .
Bring back the First Class Hospitality Business it was known for 20 years ago.
Walt Disney used this corporate sponsorship, but kept the respectability . It’s out of control now.
They want to keep ESPN and keep the profit but find somebody to do the work . And control the publicity to make it sound like Disney is a winner
Fix it all tomorrow! And announce a great new leader / successor
SOON !
Too simple ? Haha
Anyway thank you for the stock updates and lengthy but interesting very technical information for all to understand.
Please Do Not sell Disney .
Bring back the First Class Hospitality Business it was known for 20 years ago.
Walt Disney used this corporate sponsorship, but kept the respectability . It’s out of control now.
They want to keep ESPN and keep the profit but find somebody to do the work . And control the publicity to make it sound like Disney is a winner
Fix it all tomorrow! And announce a great new leader / successor
SOON !
Too simple ? Haha
Anyway thank you for the stock updates and lengthy but interesting very technical information for all to understand.
Last edited:
Cedar Fair and Six Flags will merge to create a playtime powerhouse in North America
https://finance.yahoo.com/news/cedar-fair-six-flags-merge-111545184.html
Cedar Fair and Six Flags are merging to create an expansive amusement park operator with operations spread across 17 U.S. states and three countries.
The combined company, worth more than $3.5 billion, will boast 27 amusement parks, 15 water parks and nine resort properties in the U.S., Canada, and Mexico. It will also have entertainment partnerships and a portfolio of intellectual property including Looney Tunes, DC Comics and Peanuts.
Amusement parks have seen an uptick in revenue but have struggled to raise attendance since the pandemic, even as other entertainment sectors have bounced back. A tie-up between two huge players is expected to at least lower costs.
Cedar Fair reported an attendance of 12.4 million guests in its third quarter, a 1% increase from a year earlier. Six Flags announced a 16% rise in its third-quarter attendance, which totaled 9.3 million guests.
Six Flags and Cedar Fair, which have little geographical overlap, anticipate $120 million in cost savings within two years of closing the deal.
Under the agreement announced Thursday, Cedar Fair unitholders will receive one share of common stock in the combined company for each unit owned, while Six Flags shareholders will receive 0.5800 shares of stock in the combined company for each share owned.
Cedar Fair unitholders will own approximately 51.2% of the combined company, while Six Flags shareholders will own about 48.8%.
“Our merger with Six Flags will bring together two of North America’s iconic amusement park companies to establish a highly diversified footprint and a more robust operating model to enhance park offerings and performance,” Cedar Fair CEO Richard Zimmerman said in a prepared statement.
Zimmerman will be president and CEO of the combined company. Selim Bassoul, president and CEO of Six Flags, will become executive chairman.
The companies said that given their broader geographic footprint as a single company, seasonal volatility should moderate.
The company's newly formed board will include six directors from Cedar Fair and six directors from Six Flags.
The company will be headquartered in Charlotte, North Carolina, and will keep significant finance and administrative operations in Sandusky, Ohio, where Cedar Fair is based.
Six Flags is now based in Arlington, Texas.
Once the deal closes, the combined company will operate under the name Six Flags and trade under the ticker symbol “FUN” on the New York Stock Exchange.
The transaction, which was approved by both companies' boards, is targeted to close in the first half of next year. It still needs approval from Six Flags shareholders.
Shares of Six Flags Entertainment Corp. and Cedar Fair LP were essentially flat before the opening bell Thursday, but both are up more than 9% this week after rumors of a deal began to spread.
Universal Studios follows Disney World in raising prices
https://www.thestreet.com/travel/un...ove-visitors-will-hate?puc=yahoo&cm_ven=YAHOO
wabbott
DIS Veteran
- Joined
- Aug 4, 2021
- Messages
- 6,448
https://deadline.com/2023/11/box-office-wish-napoleon-projection-1235591106/
Disney’s ‘Wish’ Eyes $50M Debut, Apple & Sony’s ‘Napoleon’ To Gallop To $24M Over Thanksgiving 5-Day: Box Office Early Look
by Anthony D'Alessandro
Editorial Director/Box Office Editor
November 2, 2023 10:13am PDT
Let the feast begin: Thanksgiving releases and awards season contenders, Disney‘s Wish and Apple Original Films and Sony‘s Napoleon are set to open over the Wednesday to Sunday holiday stretch with respective grosses of $50M+ and $24M+. Both movies open on Thanksgiving eve, Nov. 22.
Wish, if it hits its projection, would rep the biggest original animated opening in the past six years since 2017’s Coco which did $72.9M over five days; also a Thanksgiving Disney release. Families and females are showing the best support at the moment. The song “This is the Thanks I Get” performed by Chris Pine dropped recently last week and has been spurring interest for the movie that stars Oscar winner Ariana DeBose.
Other notable Disney original animated pics that launched over the Turkey holiday include 2016’s Moana ($82M), 2010’s Tangled ($68.7M) and Encanto during the 2021 pandemic ($40.5M).
Directed by Chris Buck and Fawn Veerasunthorn, Wish follows a young girl named Asha who wishes on a star and gets a more direct answer than she bargained for when a trouble-making star comes down from the sky to join her.
Ridley Scott’s Napoleon is of course tracking with older and younger guys, and its 5-day opening is in the range of the helmer’s previous Thanksgiving 2021 launch, House of Gucci, which did $22M over 5-days as well as Prime Video’s Ben Affleck directed title Air which minted $20.2M in a 5-day launch this past Easter.
Napoleon reps Apple’s second mega wide theatrical release on a long window after Martin Scorsese’s Killers of the Flower Moon which Paramount distributed. That pic opened to a solid $23.2M in the middle of an actors strike where performers aren’t permitted to promote struck work. Napoleon begins media previews next Wednesday. The movie starring Oscar winner Joaquin Phoenix in the title role has a 2 hour 38 minute running time which is significantly shorter than Martin Scorsese’s Killers of the Flower Moon at 3 1/2 hours. Deadline first told you about Apple financing the $130M epic back in January 2021.
“Napoleon is a man I’ve always been fascinated by,” Scott told Deadline. “He came out of nowhere to rule everything — but all the while he was waging a romantic war with his adulterous wife Josephine. He conquered the world to try to win her love, and when he couldn’t, he conquered it to destroy her, and destroyed himself in the process.”
Opening the weekend before Thanksgiving is Lionsgate’s highly anticipated The Hunger Games: Ballad of Songbirds & Snakes which is forecasted at a $50M+ 3-day.
Disney’s ‘Wish’ Eyes $50M Debut, Apple & Sony’s ‘Napoleon’ To Gallop To $24M Over Thanksgiving 5-Day: Box Office Early Look
by Anthony D'Alessandro
Editorial Director/Box Office Editor
November 2, 2023 10:13am PDT
Let the feast begin: Thanksgiving releases and awards season contenders, Disney‘s Wish and Apple Original Films and Sony‘s Napoleon are set to open over the Wednesday to Sunday holiday stretch with respective grosses of $50M+ and $24M+. Both movies open on Thanksgiving eve, Nov. 22.
Wish, if it hits its projection, would rep the biggest original animated opening in the past six years since 2017’s Coco which did $72.9M over five days; also a Thanksgiving Disney release. Families and females are showing the best support at the moment. The song “This is the Thanks I Get” performed by Chris Pine dropped recently last week and has been spurring interest for the movie that stars Oscar winner Ariana DeBose.
Other notable Disney original animated pics that launched over the Turkey holiday include 2016’s Moana ($82M), 2010’s Tangled ($68.7M) and Encanto during the 2021 pandemic ($40.5M).
Directed by Chris Buck and Fawn Veerasunthorn, Wish follows a young girl named Asha who wishes on a star and gets a more direct answer than she bargained for when a trouble-making star comes down from the sky to join her.
Ridley Scott’s Napoleon is of course tracking with older and younger guys, and its 5-day opening is in the range of the helmer’s previous Thanksgiving 2021 launch, House of Gucci, which did $22M over 5-days as well as Prime Video’s Ben Affleck directed title Air which minted $20.2M in a 5-day launch this past Easter.
Napoleon reps Apple’s second mega wide theatrical release on a long window after Martin Scorsese’s Killers of the Flower Moon which Paramount distributed. That pic opened to a solid $23.2M in the middle of an actors strike where performers aren’t permitted to promote struck work. Napoleon begins media previews next Wednesday. The movie starring Oscar winner Joaquin Phoenix in the title role has a 2 hour 38 minute running time which is significantly shorter than Martin Scorsese’s Killers of the Flower Moon at 3 1/2 hours. Deadline first told you about Apple financing the $130M epic back in January 2021.
“Napoleon is a man I’ve always been fascinated by,” Scott told Deadline. “He came out of nowhere to rule everything — but all the while he was waging a romantic war with his adulterous wife Josephine. He conquered the world to try to win her love, and when he couldn’t, he conquered it to destroy her, and destroyed himself in the process.”
Opening the weekend before Thanksgiving is Lionsgate’s highly anticipated The Hunger Games: Ballad of Songbirds & Snakes which is forecasted at a $50M+ 3-day.
wabbott
DIS Veteran
- Joined
- Aug 4, 2021
- Messages
- 6,448
https://www.hollywoodreporter.com/business/business-news/paramount-q3-2023-earnings-1235635151/
Paramount Cuts Streaming Losses to $238M as Subscribers Grow to 63M
The Bob Bakish-led conglomerate saw its filmed entertainment unit swing to a $49 million loss amid production shutdowns while content licensing revenue fell amid dual labor strikes.
by Eric Hayden
November 2, 2023 1:02pm PDT
Amid its quest to slim down its asset portfolio to scale up its core entertainment ambitions, Paramount Global hit 63 million global streaming subscribers in the latest quarter (up from 61 million as of the end of June) and kept narrowing losses in its direct-to-consumer segment to $238 million, a possibly encouraging sign for Wall Street.
The Bob Bakish-led conglomerate, home to Paramount Studios, CBS, Showtime, MTV, Comedy Central, BET and Nickelodeon, has battled the perception that it’s too small to compete at scale in streaming with giants like Netflix (247 million subscribers) or Disney+ (105 million core subs). Overall, Paramount reported $621 million in operating income profit for the third-quarter, up 10 percent from the same frame a year ago.
Its flagship streaming service Paramount+ is powered by Taylor Sheridan-universe shows like 1883 and Special Ops: Lioness, NFL games, Star Trek spinoffs and its new Fraiser update, but the direct-to-consumer division lost $424 million and $511 million in its last two quarters. In an effort to cut costs, the company has sunset its standalone Showtime app, raised prices and integrated the premium cable brand’s shows like Yellowjackets and Billions into Paramount+.
“We continue to execute our strategy and prioritize prudent investment in streaming while maximizing the earnings of our traditional business,” Bakish stated on Thursday, highlighting that he expects streaming losses this year “will be lower than in 2022 – meaning streaming investment peaked ahead of plan.”
Before issuing its earnings report, the company unveiled the timeline for the final episodes of its biggest show, Sheridan’s Yellowstone, which will bow on the Paramount Network in November next year. (The series, which streams on rival platform Peacock due to an early deal that leadership likely would do over, also is getting two more spinoffs, titled 2024 and 1924.)
Meanwhile, Paramount’s sale of Simon & Schuster (for $1.62 billion, to private equity firm KKR, which closed on Oct. 30) as well as shedding real estate assets like CBS’ New York BlackRock headquarters (sold for $760 million) and CBS’ Studio City (gone for $1.85 billion) have fueled speculation in some corners that it is a takeover target. Another asset that Paramount had been debating the future of: BET Media, which includes the BET channel, streamer BET+ as well as VH1 and BET Studios. In August, company took down a “for sale” sign for a majority stake in the unit after hearing bids for several months.
During its latest quarter, its filmed entertainment theatrical studio unit also swung to a loss of $49 million, compared to a gain of $5 million in Q2. Paramount cited “incremental costs incurred during production shutdowns and lower revenue from studio rentals and production services,” for the loss.
The quarter saw Tom Cruise’s Mission: Impossible – Dead Reckoning Part One find middling box office results ($567 million globally) and Teenage Mutant Ninja Turtles: Mutant Mayhem ($180 million) successfully reviving the franchise. The filmed entertainment division saw revenue rise to $891 million, up from $831 million the prior quarter when Transformers: Rise of the Beasts bowed at the box office en route to $438 million in theatrical receipts. The studio also singled out the PAW Patrol library “serving as a top engagement driver on Paramount+,” without citing figures.
In its linear TV media segment, home to the company’s collection of broadcast and cable networks, advertising sales fell 14 percent in the quarter, following a 10 percent decline the prior quarter. Lower political advertising was cited for the drop for the TV networks. Additionally, amid the dual Writers Guild of America and SAG-AFTRA strikes, licensing and other revenue fell 12 percent “driven by lower revenue from original content produced for third parties,” the company said.
On Wednesday, CBS revealed its new host, Taylor Tomlinson, and creative team for its next late night show, After Midnight. Meanwhile, Comedy Central’s marquee anchor’s chair at The Daily Show has yet to be filled while the series has leaned on guest hosts since Trevor Noah’s final show in December of last year.
Paramount Cuts Streaming Losses to $238M as Subscribers Grow to 63M
The Bob Bakish-led conglomerate saw its filmed entertainment unit swing to a $49 million loss amid production shutdowns while content licensing revenue fell amid dual labor strikes.
by Eric Hayden
November 2, 2023 1:02pm PDT
Amid its quest to slim down its asset portfolio to scale up its core entertainment ambitions, Paramount Global hit 63 million global streaming subscribers in the latest quarter (up from 61 million as of the end of June) and kept narrowing losses in its direct-to-consumer segment to $238 million, a possibly encouraging sign for Wall Street.
The Bob Bakish-led conglomerate, home to Paramount Studios, CBS, Showtime, MTV, Comedy Central, BET and Nickelodeon, has battled the perception that it’s too small to compete at scale in streaming with giants like Netflix (247 million subscribers) or Disney+ (105 million core subs). Overall, Paramount reported $621 million in operating income profit for the third-quarter, up 10 percent from the same frame a year ago.
Its flagship streaming service Paramount+ is powered by Taylor Sheridan-universe shows like 1883 and Special Ops: Lioness, NFL games, Star Trek spinoffs and its new Fraiser update, but the direct-to-consumer division lost $424 million and $511 million in its last two quarters. In an effort to cut costs, the company has sunset its standalone Showtime app, raised prices and integrated the premium cable brand’s shows like Yellowjackets and Billions into Paramount+.
“We continue to execute our strategy and prioritize prudent investment in streaming while maximizing the earnings of our traditional business,” Bakish stated on Thursday, highlighting that he expects streaming losses this year “will be lower than in 2022 – meaning streaming investment peaked ahead of plan.”
Before issuing its earnings report, the company unveiled the timeline for the final episodes of its biggest show, Sheridan’s Yellowstone, which will bow on the Paramount Network in November next year. (The series, which streams on rival platform Peacock due to an early deal that leadership likely would do over, also is getting two more spinoffs, titled 2024 and 1924.)
Meanwhile, Paramount’s sale of Simon & Schuster (for $1.62 billion, to private equity firm KKR, which closed on Oct. 30) as well as shedding real estate assets like CBS’ New York BlackRock headquarters (sold for $760 million) and CBS’ Studio City (gone for $1.85 billion) have fueled speculation in some corners that it is a takeover target. Another asset that Paramount had been debating the future of: BET Media, which includes the BET channel, streamer BET+ as well as VH1 and BET Studios. In August, company took down a “for sale” sign for a majority stake in the unit after hearing bids for several months.
During its latest quarter, its filmed entertainment theatrical studio unit also swung to a loss of $49 million, compared to a gain of $5 million in Q2. Paramount cited “incremental costs incurred during production shutdowns and lower revenue from studio rentals and production services,” for the loss.
The quarter saw Tom Cruise’s Mission: Impossible – Dead Reckoning Part One find middling box office results ($567 million globally) and Teenage Mutant Ninja Turtles: Mutant Mayhem ($180 million) successfully reviving the franchise. The filmed entertainment division saw revenue rise to $891 million, up from $831 million the prior quarter when Transformers: Rise of the Beasts bowed at the box office en route to $438 million in theatrical receipts. The studio also singled out the PAW Patrol library “serving as a top engagement driver on Paramount+,” without citing figures.
In its linear TV media segment, home to the company’s collection of broadcast and cable networks, advertising sales fell 14 percent in the quarter, following a 10 percent decline the prior quarter. Lower political advertising was cited for the drop for the TV networks. Additionally, amid the dual Writers Guild of America and SAG-AFTRA strikes, licensing and other revenue fell 12 percent “driven by lower revenue from original content produced for third parties,” the company said.
On Wednesday, CBS revealed its new host, Taylor Tomlinson, and creative team for its next late night show, After Midnight. Meanwhile, Comedy Central’s marquee anchor’s chair at The Daily Show has yet to be filled while the series has leaned on guest hosts since Trevor Noah’s final show in December of last year.
wabbott
DIS Veteran
- Joined
- Aug 4, 2021
- Messages
- 6,448
https://finance.yahoo.com/news/para...ities-to-hike-streaming-prices-221513378.html
Paramount says there will be 'continued opportunities' to hike streaming prices
Alexandra Canal · Senior Reporter
Thu, November 2, 2023 at 5:15 PM CDT
Paramount (PARA) said streaming subscribers will see even more price increases moving forward — a trend that's permeated throughout the entire media industry.
"We see a very compelling pricing opportunity longer term which is to say this won't be the last price increase that we do," CFO Naveen Chopra said on the company's third-quarter earnings call on Thursday.
"We think there is a continued opportunity for pricing to play a role in growing both revenue and earnings in our streaming business," he added.
In June, Paramount (PARA) launched its ad-free Paramount+ with Showtime streaming offering for $11.99 a month — $2 more than the previous price for a Paramount+ subscription. It also raised the prices of its ad-supported tier by $1 to $5.99.
Paramount+ added 2.7 million subscribers in the third quarter, beating expectations of a 1.8 million increase. In total, Paramount+ has reached more than 63 million subscribers.
Subscription revenue also grew 46% in the quarter to reach $1.3 billion, driven by subscriber growth and pricing increases for Paramount+, coupled with revenue from pay-per-view events. Overall direct-to-consumer revenue totaled $1.69 billion in the quarter, compared to the expected $1.64 billion.
"Paramount+ is still positioned at a very compelling price point, and that's true both on our ad-supported tier and our ad-free tiers," Chopra said.
"Relative to competitors, Paramount+ is still positioned at a very compelling price point," the executive continued, adding the June price increases "actually performed better than we expected" with the impact on churn, or consumers cancelling the service, coming in less than expected.
"The price increase is actually more accretive to earnings than we originally anticipated, so that gives us some confidence," he said, doubling down on the streamer's value proposition with sports, films, franchises, and kids' content at the cornerstone of its pipeline.
"The data we've seen coming out of our first price increase suggests that, that value proposition and the stickiness of the content does give us additional room for growing price over time," he said.
Paramount reported a direct-to-consumer (DTC) loss of $238 million, narrower than analyst expectations of $438 million and the $343 million loss seen in the year-earlier period.
The company now forecasts full-year direct-to-consumer losses in 2023 will be lower than in 2022, with anticipated fourth-quarter DTC losses similar to the year-ago period.
Streaming prices have ballooned across the board as profitability becomes top of mind for media companies — and even tech giants like Apple (AAPL) and Alphabet (GOOGL).
Last week, Apple became the latest platform to raise prices after announcing the monthly cost of streaming service Apple TV+ will go up by $3 to $9.99 for new subscribers. Netflix (NFLX), Disney (DIS), and Hulu also raised streaming prices last month.
Added up, the cost of these services now rival the dreaded cable TV bundle of years past — the very thing that streaming set out to undo.
Consumers are taking notice with subscribers canceling more of their plans to combat rising costs. According to a new report from Antenna, US subscribers are canceling streaming services at record rates with 6% of overall subscribers cancelling plans in September — the highest recorded rate.
Paramount says there will be 'continued opportunities' to hike streaming prices
Alexandra Canal · Senior Reporter
Thu, November 2, 2023 at 5:15 PM CDT
Paramount (PARA) said streaming subscribers will see even more price increases moving forward — a trend that's permeated throughout the entire media industry.
"We see a very compelling pricing opportunity longer term which is to say this won't be the last price increase that we do," CFO Naveen Chopra said on the company's third-quarter earnings call on Thursday.
"We think there is a continued opportunity for pricing to play a role in growing both revenue and earnings in our streaming business," he added.
In June, Paramount (PARA) launched its ad-free Paramount+ with Showtime streaming offering for $11.99 a month — $2 more than the previous price for a Paramount+ subscription. It also raised the prices of its ad-supported tier by $1 to $5.99.
Paramount+ added 2.7 million subscribers in the third quarter, beating expectations of a 1.8 million increase. In total, Paramount+ has reached more than 63 million subscribers.
Subscription revenue also grew 46% in the quarter to reach $1.3 billion, driven by subscriber growth and pricing increases for Paramount+, coupled with revenue from pay-per-view events. Overall direct-to-consumer revenue totaled $1.69 billion in the quarter, compared to the expected $1.64 billion.
"Paramount+ is still positioned at a very compelling price point, and that's true both on our ad-supported tier and our ad-free tiers," Chopra said.
"Relative to competitors, Paramount+ is still positioned at a very compelling price point," the executive continued, adding the June price increases "actually performed better than we expected" with the impact on churn, or consumers cancelling the service, coming in less than expected.
"The price increase is actually more accretive to earnings than we originally anticipated, so that gives us some confidence," he said, doubling down on the streamer's value proposition with sports, films, franchises, and kids' content at the cornerstone of its pipeline.
"The data we've seen coming out of our first price increase suggests that, that value proposition and the stickiness of the content does give us additional room for growing price over time," he said.
Paramount reported a direct-to-consumer (DTC) loss of $238 million, narrower than analyst expectations of $438 million and the $343 million loss seen in the year-earlier period.
The company now forecasts full-year direct-to-consumer losses in 2023 will be lower than in 2022, with anticipated fourth-quarter DTC losses similar to the year-ago period.
Streaming prices have ballooned across the board as profitability becomes top of mind for media companies — and even tech giants like Apple (AAPL) and Alphabet (GOOGL).
Last week, Apple became the latest platform to raise prices after announcing the monthly cost of streaming service Apple TV+ will go up by $3 to $9.99 for new subscribers. Netflix (NFLX), Disney (DIS), and Hulu also raised streaming prices last month.
Added up, the cost of these services now rival the dreaded cable TV bundle of years past — the very thing that streaming set out to undo.
Consumers are taking notice with subscribers canceling more of their plans to combat rising costs. According to a new report from Antenna, US subscribers are canceling streaming services at record rates with 6% of overall subscribers cancelling plans in September — the highest recorded rate.
-
WHEN Should You Ride Monsters Unchained at Epic Universe?
-
Five Secrets to Better Kids Disney Character Moments
-
The Manor Storehouse Merchandise Inside Dark Universe at Epic Universe
-
Visiting The Land Pavilion in EPCOT is a MUST
-
New Disney World Passholder Tumbler Featuring Joey Chou Art
-
Every Restaurant & Menu in HTTYD - Isle of Berk at Epic Universe
-
New Loungefly: 'Alice in Wonderland' & 'Sleeping Beauty'
Save Up to 30% on Rooms at Walt Disney World!
Save up to 30% on rooms at select Disney Resorts Collection hotels when you stay 5 consecutive nights or longer in late summer and early fall. Plus, enjoy other savings for shorter stays.This offer is valid for stays most nights from August 1 to October 11, 2025.
CLICK HERE
