Core Viewpoint - Netflix is positioning itself as a competitive buyer against Warner Brothers Discovery (WBD) and is attempting to counter claims of monopolistic dominance in the streaming market [1][2]. Group 1: Netflix and Warner Brothers Discovery - A potential merger between Netflix and Warner Brothers would result in a combined TV viewing share of 9.2% in the US, with HBO and HBO Max contributing 1.2% of that share, which would still not surpass YouTube and Disney [1]. - WBD has recommended its shareholders reject Paramount Sky Dance's all-cash bid of $77.9 billion at $30 per share, indicating confidence in its current strategy [2]. Group 2: Streaming Market Dynamics - Netflix and HBO together account for over 50% of all monthly streaming subscribers globally, and their combined revenue and content budget exceed that of all other competitors [4]. - The only segment of the entertainment industry that is experiencing growth is streaming, highlighting its increasing importance [10]. Group 3: Regulatory Challenges - There is skepticism regarding the survival of a Netflix-WBD merger under regulatory scrutiny, with expectations that various regulatory bodies will block the deal [6][25]. - The political landscape, including potential involvement from figures like Donald Trump, may further complicate the merger's prospects [26][27]. Group 4: Competitive Landscape - Paramount's bid is seen as potentially viable due to its higher offer of $108 billion compared to WBD's valuation, despite WBD's rejection based on doubts about the bid's fulfillment [8][11]. - The competitive dynamics in Hollywood are shifting, with talent expressing concerns about Netflix's influence and the implications of a merger that would consolidate power in the streaming market [20][21].

Joining us now first on CNBC, Candle Media co-founder and co-CEO Kevin Mayer. Also former Disney chief strategy officer as well as the former CEO of Tik Tok. Kevin, it's great to have you here.Welcome. >> Always good to be here. Thank you for having me.>> So would you have done this deal with with Open AI if you were leading Disney. >> Well, I think there's an inevitability to Hollywood having to intersect with this technology for sure. I don't know the details other than that which was reported about about ...

Disney's $1 billion investment in Open AI and its move to let fans make AI videos with its characters opening the door for other studios to consider similar deals or risk potentially falling behind. Here's Disney's CEO Bob Iger on CNBC with David Faber yesterday. >> We've been extremely impressed with OpenAI's growth and what Sam and his team have been able to achieve.And of course on top of that was their uh appreciation for our content and their willingness to license it and their willingness to help us p ...

Disney has announced it's [music] making a $1 billion investment in Open AI. The deal includes a major [music] licensing agreement between the two companies, allowing Open AI access to some of Disney's most iconic [music] characters. NBC News business and economy reporter Emily Lorch joins us now.So Emily, Open AAI is calling [music] this a significant step when it comes to artificial intelligence and entertainment. What do we know. [music] >> Hey guys, we should cue a whole new world right now.That's what' ...

Disney is bringing its catalog of iconic characters, from Marvel to Star Wars and Pixar, to OpenAI's Sora AI social media app, the company announced on Thursday. That means Sora users will soon be able to generate AI videos featuring any of Disney's included characters, with no fear of copyright infringement.In a wide-reaching deal, Disney is making a $1 billion equity investment in OpenAI. Disney employees will have access to ChatGPT, and the entertainment company will use APIs to "build new products, tool ...

Good morning and welcome to Squawk on the Street. We're going to start our show this morning with some breaking news from the Walt Disney Company and Open AI. The two reaching what they're calling a landmark agreement to uh bring more than 200 characters to the Open AI Sora platform.The short-term uh short form, excuse me, video platform of course that is uh become so incredibly popular. in part so popular that OpenAI needs ever expanding amounts of compute which will get us a little later to Oracle of cour ...

Core Insights - Walt Disney Company and OpenAI have reached a landmark agreement to bring over 200 Disney characters to the OpenAI Sora platform, a short-form video platform that has gained significant popularity [1][2] - Disney will invest $1 billion in OpenAI as part of a three-year deal, which includes receiving warrants that could increase Disney's stake in OpenAI over time [4] - The deal allows for the creation of short user-prompted videos featuring Disney characters, which can also be used on Disney Plus, although these videos will not include the original voice actors [6] Disney's Strategic Moves - Disney's investment in OpenAI reflects its recognition of the importance of technology in the entertainment industry and a desire to remain competitive [5] - The agreement is seen as a way for Disney to leverage its extensive portfolio of characters, including iconic franchises like Marvel and Star Wars, for new content creation [7] Legal Actions - Concurrently, Disney has issued a cease and desist letter to Google regarding the unauthorized use of its characters on Google's short-form video platform, claiming copyright violations related to the training of generative AI models [8]

Business Strategy & Market Position - Disney controls valuable IP and distribution channels, generating over $90 billion annually [2] - Disney's flywheel system translates entertainment IP into experiences and products, driving revenue across the company [11] - Disney aims to integrate its television business, serving fans across streaming and linear channels [12][13] - Disney is developing a super app to personalize the Disney Plus experience and reduce friction for users [33][34] Streaming & Content - Disney Plus launched with 10 million subscribers in the first 24 hours [9] - Disney's streaming business turned a profit for the first time in 2024, but remains behind Netflix [23] - Disney focuses on curating content rather than creating a "fire hose" of content [25] - FX's Shogun had 70% Japanese dialogue and became FX's biggest hit ever, signaling a move towards global and localized content [29][31] Leadership & Challenges - Declining revenues from traditional TV and movie theaters pose challenges as studios compete in the streaming market [4] - Political challenges have put Disney and its subsidiaries like ABC in the spotlight [4] - Disney is navigating succession planning, with Dana Walden as a potential candidate for CEO [5][46] - Disney is approaching AI in storytelling with actors, writers, and directors to protect human contributions [39]

Core Viewpoint - Paramount Sky Dance is actively involved in the bidding for Warner Brothers Discovery, despite Netflix being announced as the winner in the bidding race, indicating ongoing competitive dynamics in the media sector [1][2]. Company Performance - Paramount Sky Dance shares are trading up more than 7% on the day, reflecting positive market sentiment [2]. - Year-to-date, Paramount Sky has outperformed both the communication sector (up 17.6%) and the S&P 500 (up 28%) [3]. Market Context - The streaming sector is complex, with Paramount Sky being a standout performer compared to competitors like Comcast and Disney, which have diversified business models beyond streaming [4][5]. - Warner Brothers Discovery has gained attention due to acquisition news, impacting the overall market dynamics in the streaming space [5]. Technical Analysis - Paramount Sky has experienced a downward sloping channel, with recent highs at 20.86 and lows around 13.30, indicating potential support and resistance levels [6][7]. - Current trading is around 14.30, with significant moving averages indicating short-term boundaries [9][12]. Options Activity - Today's options volume is heavily skewed towards calls, with 88% of the volume being call options, suggesting bullish sentiment [13]. - Expected volatility for upcoming expirations indicates a potential move of 8.4% by December 19 and 16.8% by January 16 [14].

Summary of The Walt Disney Company FY Conference Call (November 19, 2025) Company Overview - **Company**: The Walt Disney Company (NYSE: DIS) - **Fiscal Year**: 2025 - **Key Speaker**: Hugh Johnston, Chief Financial Officer Key Points and Arguments Financial Performance - **Earnings Growth**: Full year EPS increased by 19%, with a CAGR of 19% over the last three years [4][5][6] - **Future Guidance**: Expected double-digit EPS growth for fiscal 2026 and 2027, excluding the 53rd week [3][4] Film and Content Strategy - **Strong Film Slate**: Upcoming films include Zootopia 2, Avatar, Devil Wears Prada 2, and a Moana movie [4] - **DTC Business Growth**: Aiming for double-digit growth in Direct-to-Consumer (DTC) business, with a focus on achieving double-digit margins by 2026 [5][28] Parks and Experiences - **Parks Performance**: Domestic parks saw an 8% increase in operating income, reaching $10 billion for the first time [8] - **Attendance Trends**: Domestic parks attendance declined by 1% for the year, with a 2% decline in Q4, but bookings are up by 3% [8][10][12] - **Yield-Based Approach**: Focus on generating incremental revenue through ticket prices, food, beverage, and merchandise [17] Cruise Operations - **Expansion Plans**: Two new cruise ships are set to launch, with significant investments in the parks and attractions [21][22] - **Market Share**: Currently low market share in cruises, with plans to expand capacity to 13 ships by 2031 [26] Direct-to-Consumer (DTC) Strategy - **Subscriber Growth**: Currently at 195 million global subscribers, with plans for further expansion [28] - **Content Strategy**: Focus on local content to enhance engagement and retention, while maintaining a balance between sports and entertainment content [38][39] Capital Allocation and Cash Flow - **Strong Cash Flow**: Projected cash flow of $10 billion for fiscal 2026, with a 50% increase in dividends and a doubling of share repurchase to $7 billion [6][58][60] - **Investment Priorities**: Focus on business investments, dividend increases, and potential tuck-in acquisitions [61] M&A Strategy - **No Major M&A Plans**: The company is satisfied with its current portfolio and does not see the need for significant mergers or acquisitions [64] Additional Important Insights - **Technological Integration**: Ongoing efforts to unify the app experience for consumers, enhancing engagement and retention [34][36] - **Content Spend**: Content budget for the year is $24 billion, with a focus on quality over quantity [37][39] - **NFL Deal**: The acquisition of a 10% stake in ESPN and the NFL network is expected to enhance content offerings and financial performance [53][54] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting the company's focus on growth, innovation, and capital management.