The Hulu Put

Ok, so Disney has about $10B in cash and another $10B in available credit, roughly $20B in available monies.

The floor for Hulu is valued at $9B. Assuming they don't lose any more money and assuming The Marvels turns out not to be a success on the level of Barbie, they'll likely go into 2024 with $20B on hand.

$20B - $9B = $11B. Fine.

Now, imagine if Hulu's valuation is actually greater than $9B or even worse, rises between November and January. How would that happen? What if there's an organized effort to get a bunch of people to sign up at the end of the year, similar to an AMC or GME short squeeze?

They could drive the cost up to $50B, but Disney only has $20B. They would go bankrupt. And unless they sold, it would ki-l Disney. Effectively leaving Comcast/Universal as the top dog.

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In other words, we're screwed.

@4oge+1o5Cvhn1 you're right but disney doesn't have a year. they're obligated to buy hulu at market value in january.

Hulu will not be worth that in a year— far less. But this will be on the heels of a larger macro event that will destroy much of what you take for granted. Nothing can stop what is coming.

There is no way Hulu will be less than $15 billion. And no matter how much money we have we don't have enough to buy Hulu, ki-l Hulu and get enough $ to the parks to make them money machines again

@3oxw+1o5Cvhn1 On the last earnings call they said they had about $10b in cash on hand and another $10b in available credit/paper assets e.g. real estate and other properties. But to your point, where tf is this additional cash flow supposed to come from? Iger is to blame for sure but so are his daddy Larry fink and the freaks in davos

I don't know where you are getting those figures. In April Net Working Capital (NWC) was $207 Million for the quarter ended April 1st, 2023. As of the last earnings call last week it was down to $25 million.

Since the quarter ended June 27th, 2009, Walt Disney Co's net working capital (nwc) has decreased from $2.89 Billion to $207 Million as of the quarter ended April 1st, 2023. They are selling and writing off assets to get as much cash as they can but they are still going to go deep in debt on this transaction (made by Iger). Oh and the interest rates are hovering around 7 percent. Oh and the revenues are tanking because of all of his woke and DEI bulls---. This company is headed for some seriously bad times and it is all because of the CEO that they just extended. Iger is a cancer

even if hulu gets valued at $15B, which is not only possible but right now the most likely turnout, we're all in trouble.

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The Hulu Put

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