On Tuesday, the stock price of Walt Disney is expected to drop in the after-hours despite exploring sale strategies for India.
Its stock price went up by 1.58% to $89.49 per share on July 11. However, it is anticipated to fall by -0.06% to $89.44 apiece in the upcoming session.
Disney is finding options to sell or discover a joint venture partner for its digital and television business in India. Analysts said the discussions are developing, and no potential buyer or partner has been talked to yet. Also, the process lacks clarity on how it will work out.
Moreover, the Wall Street Journal was the first to state news about negotiations with Disney. They said the firm got support from at least one bank to help the Indian business solidify.
The talks came in when the company dealt with rising pressure amid the arrival of the streaming platform, JioCinema. Mukesh Ambani, the wealthiest man in Asia, runs the platform. He promoted the streaming service by offering free passage to the Indian Premier Cricket tournament.
Furthermore, the Disney business in India incorporates Disney+ Hotstar streaming service and Star India. It took charge when it absorbed the assets of 21st Century Fox in 2019.
In addition, Disney is reducing costs while some economic headwinds pressure its advertising revenue and subscriber count.
Ron DeSantis Conflict Increases Disney Spending
The conflict brought by the war between Disney and Ron DeSantis regarding LGBTQ+ rights impacted California.
Also, the famous theme park giant limited its investment in Florida and boosted spending in the Golden State.
According to analysts, Disney is reprioritizing its expansion strategies. Moreover, its issues with Florida regarding gender identity and sexual orientation turned into a legal argument.
Following the statements of CEO Bob Iger, the company pushes toward its Disneyland Forward and two Anaheim theme parks. Besides, Iger claimed that DeSantis is anti-business and anti-Florida.
Additionally, DeSantis brought long-term damages to the company’s investments in Florida. As a result, they pulled investment, causing 2,000 people not to move since they canceled it.
