Disney Might Need to Be Broken Up, Ross Gerber Says

Summary

Ross Gerber argues that Disney is too cheap relative to the value of its assets and IP and that the company should be broken into three separate businesses: parks/resorts/cruises, streaming/entertainment, and ESPN. He says the parts are worth more than the whole, management has failed to create momentum for years, and a breakup with exclusive IP licensing could unlock value. The host and Gerber also discuss the difficulty of choosing a CEO for very different businesses and the broader entertainment landscape after an unspecified merger.

• Ross Gerber says Disney's valuation makes no sense and is too cheap.
• He advocates splitting Disney into parks/resorts/cruises, streaming/entertainment, and ESPN.
• He says Disney's assets and IP are superior to Warner Brothers' and should be valued more.
• He argues the parts are worth more than the whole and that five years of waiting has produced no momentum.
• He suggests exclusive IP licensing can preserve cross-pollination after a breakup.
• He says management succession is complicated because Dana and Josh run different businesses.
• He notes the market doubts Disney's current strategy and that Iger is ready to leave.
• He expects the entertainment business to change after an unspecified merger.