00:00What story is more interesting to you, Ross?
00:02Is it Tesla and the possible combination of SpaceX, XAI, or is it Disney?
00:09Well, the Disney story is a little bit sad for me because I'm just like, I've owned this
00:14company for my whole life, and Iger's done a great job sort of refixing the business
00:19and getting good movies back in the theaters and such, but they just can't seem to get
00:24the momentum going and the valuation for Disney just makes no sense.
00:31It's so cheap relative to what they're willing to pay for Warner Brothers assets, which are
00:35garbage compared to Disney, but they just seem like maybe this company needs to be broken
00:40up, and that's part of it.
00:42That's part of it.
00:42What does that look like?
00:43What does that breakup look like, Ross?
00:45Well, see, Josh and Dana are both great executives, so the fact they have to pick one is the problem
00:53because Dana runs entertainment, and Josh runs the theme parks and all this kind of
00:58stuff, and they're just completely different businesses with different skill sets, and maybe
01:03they should be co-CEOs, even though I hate that formula for businesses.
01:08Disney's just, the parts are worth more than the whole, and we've waited five-plus years
01:15since the pandemic for them to do something good, and they haven't.
01:18So it's time for a change at Disney, and I think it's breaking up the business and spitting
01:22off ESPN.
01:23Would that be the only thing spun off?
01:25It would just ESPN would be...
01:26No, it should be three companies is the way I see it.
01:29What should they be?
01:30Well, you have theme parks, resorts, and experiences.
01:32Oh.
01:33The cruise ships is one, and then you have your streaming business as the other, and
01:38then you have ESPN Sports as the third, right?
01:40So you have entertainment that's non-sports, and then you have a pure sports play, which they
01:45just sold 10% to the NFL.
01:47Would that work with all the cross-pollination that happens these days?
01:51Like, you know, you go on a Disney cruise, and the Disney IP is everywhere.
01:55You go see a Disney film, and if it's a popular film, that ends up becoming something that is
02:01an attraction at one of the park and resorts.
02:02It's supposed to be this virtual cycle that for years worked out really well.
02:06Could they still do that as separate companies?
02:08Yes, and I think it still works now that way, you know, but like, explain how the sports
02:15business really matters when it comes to going, you know, on a cruise.
02:19It's nice to have ESPN on the TV there, but there's no relationship, really.
02:24So I get when you're making a movie, you want it to go through the streamers, but I'm saying
02:27keep that all together, and then they license all their IP to the theme parks and resorts
02:32anyway.
02:32So it would just be an exclusive licensing agreement.
02:35I think it's actually quite simple.
02:36I think the real issue is extracting value from the very valuable assets and IP that
02:42Disney has, while everybody's fighting over crappy IP and assets, like Disney has the
02:48best assets in Hollywood.
02:49So, you know, I don't know.
02:52I just don't think they have a future.
02:54The market's saying, like, wait, we don't see this future that you're making for us.
02:59Iger's ready to leave.
03:01You know, so I actually think this story is pretty interesting because, you know, the entertainment
03:05business is never going to be the same after this merger goes through, and I don't know
03:08what it looks like on the other side.
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