Welcome to Disney’s 2025 Trade Deadline
The Walt Disney Company has just returned to the bargaining table after an odd year.
Just two years ago, CEO Robert Iger headed to the event known as billionaire summer camp.
(Photo by Vittorio Zunino Celotto/Getty Images)
At the time, Iger went hat in hand, begging for scraps from various Wall Street power players.
Fast forward to today, and Disney’s position has objectively improved…by a lot.
Photo by JC Olivera/Getty Images)
Now that Disney has more negotiating power, it’s more likely to make a deal.
So, I’m thinking of the coming days in a certain way since it’s mid-July.
Walt Disney Company
Welcome to Disney’s 2025 trade deadline! Here’s what’s happening.
About the Trade Deadline
Atlanta Braves
I’m a lifelong Atlanta Braves fan, which means this season has been pain for me.
For the first time since 2017, Atlanta appears likely to miss the playoffs.
(Photo by Carmen Mandato/Getty Images)
In Disney terms, that hasn’t happened since approximately the opening of Pandora – The World of Avatar.
So, for the first time in nearly a decade, we’re clearly sellers at the trade deadline…and desperate ones at that.
Photo: Major League Baseball
It’s been grim, what with our best four starting pitchers all out until at least mid-August.
Also, we hit like we’re conscientious objectors who don’t want to cause baseballs any pain.
Photo: D23
But I digress. The point is that we’ll be considering any and all offers at the trade deadline.
That’s what happens when you hold no cards. You must take whatever other players are willing to give you.
Photo: Disney Clip Art
Bob Iger knows that feeling all too well. When he returned to Disney, the company was a mess.
To clean up the company’s finances, the CEO was forced to consider deals that made little sense.
(Photo by Jerod Harris/Getty Images for Vox Media)
I joked at the time that Iger started an everything must go sale at the event known as billionaire summer camp.
Each year, Allen & Company hosts an exclusive retreat at Sun Valley, Idaho.
Walt Disney Company
Everyone who is anyone in the media attends, as demonstrated by Shari Redstone’s recent actions.
Redstone is in the process of selling her father’s company/life’s work, Paramount, to Skydance Entertainment.
One of the reasons she acted reluctantly was that she wanted to keep her invite to this event. It’s a big deal in some circles.
You can also think of it as the equivalent of the Wall Street trade deadline, as many famous mergers and acquisitions (M&A) have occurred here.
Photo: History.com
And make no mistake on the point. Disney is ready to deal.
Iger Holds All the Cards
Photo: Washington Post
In July 2023, Disney needed money. The company had yet to recover financially from the pandemic.
Also, Chapek’s aggressive spending to prop up Disney+ had drained additional capital.
Photo: English Jargon
At one point, Disney was spending more than 35 percent of its annual revenue on content.
This decision left Disney financially strapped at a time when it would have been vulnerable anyway.
(Photo by Jesse Grant/Getty Images for Disney)
Iger’s sole assignment during his return engagement was to solve this problem by any means necessary.
So, a very grumpy Iger appeared on CNBC at the crack of dawn and said everything was negotiable.
Photo: Disney
Later, the executive acknowledged that this tactic wasn’t a great idea on his part.
At the time, I evaluated what Disney might sell, focusing on the eroding nature of its Linear Networks division.
Since then, to Disney’s credit, the company hasn’t sold all its assets at bargain-basement prices.
They’re gonna let the Braves do that in two weeks instead. Yes, I’m bitter.
Photo: Deadline
Anyway, Iger patiently sat out the 2023 summit and then did the same in 2024.
It’s become an annual tradition for people like me to speculate on Disney’s upcoming plans.
AP Photo/Richard Drew, File
But 2025 is different. Disney has fully recovered from its financial struggles, with the stock currently hovering around $120.
Now, if Iger wants to make a deal, he’s the one holding all the cards, not pleading for a richer person’s generosity.
Actions, Not Words
Photo:Ivan Marc / Shutterstock.com
Also, Iger just tipped his hand. A few weeks ago, I wrote this, which we published a few days after this.
I actually wrote it before then, but that’s not the point. What matters is what Iger did, not what he said.
Walt Disney Company
Just a few days later, Disney announced its intention to sell A+E. There’s the reality and the fiction.
What Iger says isn’t necessarily what he does because he’s a poker player sitting at the table.
Photo: Variety
Ordinarily, the CEO would never blatantly state that he’s selling a property like this.
He’d tease interest and weigh options. A+E works differently since it’s jointly owned with Hearst Communications.
Photo: Disney
The two parties have come to an understanding that the erosion of cable has limited the value of A+E.
That’s a small example of a larger problem. The statement applies to all cable channels.
We live in a TikTok and YouTube world. That’s how the overwhelming majority of people consume content.
So, the value of Disney’s Linear Networks is plummeting precipitously each year.
Photo: Disney
I say that while acknowledging that to Disney’s credit, it has deduced a financial hack in the short term.
That’s crucial to this conversation, as it’s why Iger suddenly controls the cards.
This Trade Deadline Could Last All Year
Credit: Disney
Now that he doesn’t have to sell, other companies must come to him with better offers.
This statement applies to the entire Disney empire, not just its Linear Networks.
The Walt Disney Company
Disney is once again humming along, just as it had done in 2019 before the pandemic.
In sports playoff terms, Disney is now a buyer, not a seller. It holds all the power.
Photo:NYpost.com
But that’s also how the trade deadline analogy fails. There is no deadline date on Wall Street.
A company can make an M&A deal at any point. So, this week’s discussions aren’t just about now.
The Walt Disney Company
Disney can also better position itself for later negotiations, and it’s even got an ace up its sleeve.
While Iger probably won’t ever gloat about it, Disney is suddenly cash-rich relative to projections.
(Charley Gallay / Getty Images for Disney)
Since the Hulu arbitration with Comcast broke almost entirely in Disney’s favor, the company has extra money.
Disney had to set aside billions as a safeguard against losing its arbitration battle with Comcast.
Photo: skillastics.com
Luckily, the companies settled on less than half a billion, which gives Disney some deep pockets.
While the company still faces plenty of long-term debt from the Fox deal, Disney’s in its best financial shape in six years.
The Walt Disney Company
So, buckle up! Iger may wheel and deal more than usual at this year’s billionaire summer camp.
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