Disney(US:DIS) New York Post·2025-11-13 16:58Core Viewpoint - The Walt Disney Company is facing a prolonged dispute with Google-owned YouTube TV over carriage fees, negatively impacting its TV business and leading to a significant drop in stock value by over 9% [1][5]. Financial Performance - Disney's fiscal fourth-quarter earnings report revealed a 21% year-over-year decline in profits from its linear TV division, totaling $391 million [2]. - Total revenues for Disney were reported at $22.46 billion, which fell short of Wall Street expectations, while operating income decreased by 5% to $3.48 billion [5]. - The company's streaming business showed an operating income of $352 million, marking a 39% increase, nearly matching the profits from its linear TV division [11]. Ratings and Viewership - The ongoing contract dispute has resulted in ABC's ratings suffering, particularly in the 25-54 age demographic, where ABC's "World News Tonight" was outperformed by NBC's "Nightly News" for the first time since July [5][6]. - The blackout of ABC and ESPN on YouTube TV has affected approximately 10 million subscribers, costing Disney an estimated $30 million per week [8][11]. Management and Strategic Outlook - Disney's CFO, Hugh Johnston, indicated that the company has prepared for a lengthy negotiation process with Google, stating they are ready to continue as long as necessary [4]. - The company has reiterated its guidance for double-digit earnings growth in fiscal years 2026 and 2027, despite current challenges [12]. Stock Performance and Market Sentiment - Disney's stock has fluctuated between $80 and $125 per share since early 2022, down from a peak of nearly $200 in 2021, reflecting investor caution regarding the company's transition to streaming [12]. - Following the news of the ongoing dispute and financial performance, Disney shares fell more than 4% in premarket trading and over 8% after the market opened [18].