Mar 1, 2024
Hot Stocks 🔥

Disney Stock Rises As Company Announces Merger In India With Reliance Industries

Name of opportunity: 👀

The Walt Disney Company

Joining forces: 🤝

The new media entity formed by Disney and Reliance could gain increased market share by combining both company’s audiences and assets. The Walt Disney Company press release says that the joint venture “will be one of the leading TV and digital streaming platforms for entertainment and sports content in India”. 

It will have cricket tournament streaming rights to the Indian Premier League (IPL), something that could turn things around for Disney. The company has struggled with its operations in India, especially when it lost IPL streaming rights in 2022. 

You can see that over the last month, the value of DIS has spiked! It is predicted to maintain its value and perhaps continue to rise - analysts think it could rise by a modest 4.17% over the next 12 months. 

How hot is this investment opportunity? 🔥🔥🔥

This new merger could lead to growth opportunities for both Disney and Reliance - some analysts predict that it will dominate the entertainment landscape in India. 

Outside of this recent news, there are other reasons why buying DIS could be a good idea. The company’s streaming platform grew 15% last quarter, and its Parks and Experiences arm earned US$33.1 billion in revenue over the last 12 months. Apparently, the company plans to invest US$60 billion into its parks over the next 10 years, suggesting they expect this part of their business to continue to be a major earner. 

One of the media industry’s most iconic brands: 🎥

Last year Disney ranked 87 in the Forbes Global 2000 - the company’s revenue last year was US$88.898 billion. Founded in 1923, this American media giant is perhaps most famous for its film and TV productions, followed by its parks. Also under the Parks and Experiences banner are the company’s hotel resorts and cruise lines. What you might not know is just how many other companies are owned by Disney: it owns the television channels Disney Channel, FX, ESPN, Freeform, and National Geographic. Its film studios division, Walt Disney Studios, also owns Walt Disney Pictures, Walt Disney Animation Studios, Pixar, 20th Century Studios, 20th Century Animation, Searchlight Pictures, Marvel Studios and Lucasfilm. Try listing all of them without taking a breath! 

Which neme?: 🔍

You can find DIS under ‘Travel’ and ‘Gaming’.

Han Tan

Han Tan is a seasoned financial journalist and news presenter renowned for his expertise in global markets. With a career highlighted by interviews with prominent figures and recognition from major media outlets like CNN and Reuters, he delivers insightful analysis on market news and macroeconomic trends to clients and international audiences. Han's sharp commentary on currencies, stocks, and commodities is familiar to viewers of Bloomberg TV Malaysia, BFM 89.9, and NTV7, cementing his sterling reputation in the industry.