Core Viewpoint - Citi Research has issued a "Buy" rating for The Walt Disney Company (DIS.US) with a target price of $145, indicating a potential upside of 27% from the current stock price of $114.57, along with an expected total return of 28% including a 0.9% dividend yield [1] Entertainment Business - Disney has completed the acquisition of Fubo, expected to contribute approximately 50% of its earnings in the first quarter of fiscal year 2026. However, the CSL&O (Content Sales and Licensing) department is projected to face a year-over-year EBIT pressure of about $400 million due to comparisons with several films and an increase in general entertainment film releases [1] - The earnings of "Avatar" and "Zootopia 2" will be compared with "Moana 2" and "The Lion King: Mufasa," with the economic benefits of "Avatar" not being typical due to its terms inherited from the acquisition of 21st Century Fox [1] Sports Business - Disney's management remains optimistic that the ESPN Unlimited product will not trigger an incremental "cord-cutting" trend, believing sports fans prefer a linear package for all sports content rather than multiple direct-to-consumer apps. Disney plans to continue collaborating with pay-TV companies to offer streamlined sports-focused packages [2] - ESPN Unlimited and ESPN Select reportedly have around 3 million subscribers, but Disney's management did not comment on this figure [2] Theme Parks and Experiences - Domestic parks are expected to benefit from increased attendance in the first quarter of fiscal year 2026 due to two days of closures caused by a hurricane in the same period of 2025. However, a decrease in international visitors and competition from Epic Universe will pose challenges [2] - The cruise business maintains a healthy occupancy rate of over 90%, despite new ships being launched. Disney plans to continue expanding its cruise fleet until 2031, although recent profit margins may be impacted by the costs associated with new ship launches [2] Other Business Developments - Disney has terminated its gaming partnership with Penn Entertainment and established a new fixed-payment agreement with DraftKings, which does not include equity components. Additionally, Disney has strategically invested in OpenAI, similar to its collaboration with Epic, aiming to invest in areas with significant consumer engagement and control over intellectual property [3]

It is time for the lightning round by the course and then the lightning round is over. Are you ready. Ski D for the light round over Stephanie in Rhode Island. Stephanie, >> hey Jim, this is Stephanie in Rhode Island.>> How are you. >> Oh, I'm fine, thank you. Merry Christmas.>> See, >> I have owned Network Appliance for over 25 years, and I'm just curious whether I should continue to hold on to it. >> Well, you know, I think it's an okay company. It's storage management.That's a good business. Not a good y ...

Core Viewpoint - The ongoing carriage dispute between NBCUniversal and Fubo has resulted in NBCU networks going dark on Fubo, highlighting tensions in the industry regarding content distribution agreements [1][3]. Group 1: NBCUniversal's Position - NBCUniversal claims that Fubo has chosen to drop its programming despite being offered the same terms accepted by other distributors, indicating a pattern of Fubo dropping networks [2]. - NBCUniversal emphasizes its successful history of completing carriage agreements without dropping networks, contrasting this with Fubo's record of dropping partners [2]. Group 2: Fubo's Response - Fubo asserts that it has been negotiating in good faith to renew its content agreement with NBCUniversal, but NBCU's demands were deemed harmful to Fubo's consumers, leading to NBCU pulling its networks after the contract expired [3]. - Fubo criticized NBCUniversal's parent company, Comcast, for its planned spinoff of linear television networks into a new company called Versant, arguing that NBCU's multi-year deal request is unreasonable given the impending separation [4]. Group 3: Fubo's Service Strategy - Fubo claims that NBCUniversal is obstructing its efforts to offer a cost-effective sports bundle, insisting that NBCU's demands for expensive non-sports channels would increase costs for Fubo subscribers [5].

Core Insights - Fubo surpassed Wall Street expectations in its last quarter before being acquired by Disney, achieving 1.63 million North American subscribers [1] - Disney completed its acquisition of 70% of Fubo, resulting in a combined total of 6 million subscribers across Fubo and Hulu + Live TV [2] - The acquisition was part of a settlement of Fubo's antitrust lawsuit against Disney and other media companies, which was resolved before trial [3] Financial Performance - Fubo's revenue for the July-to-September quarter decreased by 2% year-over-year to $368.6 million, while adjusted earnings per share improved to 2 cents, reversing a loss of 8 cents from the previous year [4] - The subscriber count reached an all-time high for Fubo during the third quarter, exceeding analyst expectations of a loss of 4 cents per share and revenue of $361.3 million [4] Product Developments - Fubo launched a sports-focused bundle in 100 U.S. markets during the quarter, aiming to enhance its market offering after previous challenges with major programmers [5] - The company introduced a channel store that allows subscribers to access various subscription services, including Hallmark+, DAZN1, and others, integrating regional sports networks into its platform [6] Strategic Outlook - The CEO of Fubo highlighted the significance of the acquisition by Disney, emphasizing the potential for increased programming flexibility and consumer choice [7]

Fubo and Disney have officially completed the transaction to combine the live sports platform with Hulu Live TV. https://t.co/RAovLdLcJ0 ...

Corporate Action - Fubo shareholders approved the deal to combine the streaming service with Hulu Live TV [1]

Core Viewpoint - Fubo's shareholders have approved the merger with Disney, combining Fubo with Hulu Live TV, which is expected to disrupt the streaming industry and enhance Hulu's competitive position against YouTube [1][2]. Group 1: Merger Details - The merger was initially announced in January and aims to close the competitive gap between Hulu Live TV and YouTube TV, which has around 10 million subscribers, while Hulu Live TV and Fubo together have about 6 million subscribers [2]. - If executed effectively, the merger could provide sports fans with more flexible viewing options, including a potential new Hulu-branded package that offers access to Disney's streaming services (Disney+, Hulu, and ESPN) at no additional cost [3]. Group 2: Regulatory and Ownership Aspects - The approval from Fubo's shareholders is still subject to regulatory approvals, as the merger will create a larger entity and affect market competition by reducing the number of independent streaming players [4]. - Once finalized, Disney will own approximately 70% of Fubo, but Fubo will continue to operate as an independent offering, with David Gandler, co-founder and CEO of Fubo, overseeing the merged operations [5].

Core Insights - Magnite has announced the introduction of Pause Ads across major streaming platforms, enhancing its high-impact ad solutions to meet the increasing demand for performance-driven advertising experiences [1][2] - Pause Ads are designed to engage viewers during natural breaks in content, particularly effective in live viewing scenarios, thereby creating a new class of high-value ad inventory without disrupting the viewer experience [2][3] Company Overview - Magnite is the largest independent sell-side advertising company, providing technology for publishers to monetize content across various formats including CTV, online video, display, and audio [4] - The company operates globally with offices in key locations such as New York City, Los Angeles, London, Singapore, and Sydney, facilitating billions of advertising transactions each month [4] Industry Context - The introduction of Pause Ads is expected to unlock significant revenue opportunities for media owners as the connected TV (CTV) ecosystem continues to mature, reflecting a shift towards more effective engagement strategies for streaming audiences [3] - The integration of Pause Ads into programmatic buying is seen as a way to enhance the value for both traditional TV and digital advertisers in a fragmented streaming marketplace [3]