Entertainment giant Disney (DIS) may have more trouble in the news division than it expected, as evidenced by a recent contract renewal with one of its biggest figures, George Stephanopoulos. The contract renewal came with a pay cut as Disney paid out $16 million to Trump’s foundations for a museum and the like. Investors were unfazed, and going into the final minutes of Friday’s trading session, shares were up fractionally.
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Word from the New York Post noted that Stephanopoulos got his contract renewed, because Disney did not want “his blood on their hands,” the report noted. Though his renewal did come with a pay cut, the report noted; he was originally getting $20 million a year, but now, it is less. The contract does run for several years, however, which at least provides him a note of job security that most people do not get these days.
Disney is apparently scared of Stephanopoulos, as one “longtime network executive” told the New York Post that no one “…wants an angry George Stephanopoulos loose in the world.” Further, no one “…wants to humiliate George by firing him or to have his blood on their hands.” However, the plan has irked Disney staffers, who blame Stephanopoulos himself for the “mistake” that cost Disney $16 million to begin with, and point out that that same $16 million “…could…have saved” a lot of jobs.
Hand Over Fist
But Disney may not be so concerned about cash right now. A Deadline report noted that Disney is the only studio in 2024 to clear $2 billion at the domestic box office, fueled by a wave of hits from Moana 2 to Deadpool & Wolverine, which stands as the “highest grossing R-rated movie of all time.” And with Disney still poised to release the Mufasa prequel this weekend, that number only goes up from there.
Plus, even as the Disney parks continue to cripple family budgets, families continue to show up. A Newsnation report notes that a Disney trip puts 45% of American families who go into debt. But of that 45%, a healthy 59% say that it’s “worth it,” and have no regrets about going into debt for such a trip. Some parents consider the experience “…an amazing memory that I’m creating with them (their children),” and thus call it worthwhile.
Is Disney Stock a Buy or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on DIS stock based on 16 Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 22.8% rally in its share price over the past year, the average DIS price target of $125.68 per share implies 12.48% upside potential.
