Too much money in the bank for that, but everyone rooting against them could happily accept it as the true beginning of the end for Disney.
Is there? The last quarter's figure was better but the quarter before disclosed a shockingly low figure for working capital (money in the bank). It's a standard refrain that Disney is too big too fail and / or has so much wealth it can't fail but what actually is this wealth?
The movies/IPs are high profile but loss making so far as revenue goes and dramatically reduced in asset value. Would anyone now buy Lucasfilm, Pixar, Marvel or Fox for anything close to what Disney paid? There's a genuine argument to be had as to whether or not Disney and its sub brands are actually reasons for people to buy as opposed to reasons for people to not buy for a significant part of the market that Disney needs to sell to. Although high profile the movies aren't that significant to Disney's overall financial position but the IP situation has knock on consequences.
The parks have been the cash cow but even they, particularly the US ones, are in decline. The genius strategy of milking the remaining attendees til there udders run dry has failed. This is one of those things that is affected by the failing of the IPs. If people are dissuaded by the brand why would they pay top dollar to visit a theme park based on that brand. The Star Cruiser hotel which failed because (enough) people weren't prepared to pay it's inflated prices "because it's Star Wars" is a microcosm of this but the issue is of wider application. Also the land associated with the parks is vast but is it really worth its current use book value? What is all that Florida land really worth in the open market to a buyer who would not be able to use it as a Disney themed park.
The cruise ships are doing fine (all cruise operations are on the up given that they were all but shut down for a couple of years) but are also vulnerable to the wider IP failings of Disney. Why would someone pay a premium for a Disney cruise experience is the Disney brand is seen as a negative?
The streaming services that Iger banked the future of the company on are still losing vast sums (and subscribers) though Disney claim it will move to operating profit soon. Wonder if that will include the servicing of the massive debts they have built up? Am guessing not. We are also seeing significant price increases here which may be a replication of the parks experience of trying to milk your reducing customer base. Didn't work there. Not obvious why it would work here but maybe it will.
ESPN is something of a jewel in the crown but remember even that relies on winning very expensive auctions for sporting rights. Lose a few of those and everything changes. And there are developments here!
Disney also has some rather chunky current risks.
They need to realise probably well in excess of $10bn for Hulu (maybe more than twice that amount). They don't have the money sitting around for that so it's going to be more loans and/or Disney shares. I don't doubt the extent of Disney's ability to get credit but financial institutions expect their capital back and a significant return on top. What's going to fund that. Issuing shares is an option but the number they need to issue depends on the then current share price (currently low and sinking) and both gives a degree of control to the recipient of that vast shareholding and dilutes the value of the existing shares which is not likely to go down well with the exiting and already antsy shareholders.
The recently started litigation concerning Disney's alleged "Hollywood accounting" to screw over financiers of the Fox projects Disney inherited has the potential (but not certainty) to hurt Disney. Not just in the direct consequences of a judgement or settlement but consequential damage. If you are looking to finance a film are you more or less likely to contract with a Disney that has been exposed as f'ing financiers like you over? And if you are is it going to be on terms more onerous to Disney because you can't rely on good faith from them?
Then there's Reedy Creek which has the investigators in. The current litigation could end up badly for Disney but if there's been decades of fraud that's a whole different ball game. Maybe there's been no fraud (press X to doubt) and maybe Disney can cover it up or, if they can't the Florida authorities won't take action. However you look at it; not good for Disney.
And let's not forget... our glorious global overlords, the ones Disney is so supportive of, are trying to wind up Covid 2 Electric Boogaloo. What's the impact of another lockdown going to be on Disney. I'm guessing, not positive.
Maybe this is why Disney is :
"Aug 24 (Reuters) - Amazon.com (AMZN.O) is in early talks with Walt Disney Co (DIS.N) about working on the streaming version of ESPN it is developing, while possibly also taking a minority stake in the sports network, the Information reported on Thursday, citing people familiar with the matter.
Disney and ESPN are still in the midst of determining an appropriate price for the new service, the report said.
ESPN is considering charging between $20 and $35 a month for the new streaming service, which could make it the most expensive streaming service in the U.S, the report added.
Amazon.com, Walt Disney and ESPN did not immediately respond to Reuters requests for comment.
In July, Disney CEO Robert Iger told CNBC that his company wants to keep ESPN and look for strategic partners to form a joint venture or buy a stake in the sports network to help take it directly to consumers."
and the stock is lower than it has been for many many years.
TLDR: The Mouse don't shit gold no more.