Disney results:
Last week's big story was about tech, starting with Disney, a stock recommended here back in September at ±$80.
- Key financials: Linear networks revenue up 9%, Direct-to-consumer up 12%, Parks up 16%
- Direct-to-consumer still incurred a loss of $400 million
- Consumer products, content sales licensing, and ESPN performance discussed
- Overall, not a knockout result but not terrible; I remain a satisfied shareholder
Meta (formerly Facebook) Earnings:
- Advertising revenue up 24% year on year to 38.7 billion
- Other segments discussed, including Reality Labs (MetaQuest)
- Net profit $14 billion, up 35%; stock surged 20%
- Mark Zuckerberg's dividend income from the declared 50-cent dividend discussed
- Positive sentiments about Meta's performance, particularly in comparison to other tech giants
Canal+ Offer for MultiChoice:
- Canal+ made an offer for MultiChoice at 105 Rand per share
- Market reaction, initial excitement, and stock movement
- Simon's caution about potential risks and timing of the deal
- MultiChoice's response: Board concluded the offer significantly undervalues the group
- Canal+ continued to buy MultiChoice shares, now owning 35.1%
- Discussion on the mandatory offer threshold and potential scenarios
- Regulatory considerations: Foreign ownership rules and competition commissions
- The price of the mandatory offer must be equal to;
(i) identical to, or where appropriate, similar to the highest consideration paid by the bidder for those acquisitions and
(ii) accompanied by a cash consideration, at not less than the highest cash consideration paid if the shares that carry 5% or more of the voting rights were acquired for cash.
- Simon's conclusion: Canal+ likely to succeed, potential challenges, and market dynamics
Simon Brown