Disney: spin-off scenario boosts stock

(CercleFinance.com) - Disney shares are up on Tuesday, boosted by speculation that the company may split off its ESPN and ABC television networks.


The speculation was prompted by comments made by analysts at Wells Fargo, who, in their 2023 media sector forecast, believe the US group could begin the process of spinning off both these assets next year.

According to the Californian bank, Disney could - in preparation - launch an "a la carte" streaming offer around ESPN, its sports channel, before streamlining its costs and balance sheet with a view to a potential split.

The result would be a much healthier Disney group, it says.

At around 10 am (New York time), Disney shares were up 1.6%, the biggest winner in the Dow Jones index, which was up 0.2%. Note that YTD, the stock has fallen by over 44%, compared with a decline of than 10% for the industrial index.


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