Disney’s falling stock price has been in the news for a while now and Rosenblatt Securities senior analyst Barton Crockett joined CNBC’s Squawk Box and shared his thoughts on what the company could do if things don’t turn around.
- Rosenblatt Securities senior analyst Barton Crockett shared his thoughts on the falling Disney stock recently on CNBC’s Squawk Box.
- Crockett made an interesting suggestion Disney could consider if things keep trending the way they are:
- “Look I think that one thing or the other is going to happen with Disney stock. They’re either going to find some kind of solid footing underneath the business that’s going to support the stock or the pressure is going to build on this company to restructure and to break up.”
- Crockett did take a second to acknowledge that he does not believe the leadership team at Disney wants to consider a break up:
- “I think in the latter scenario you’ve got certainly an opportunity for value to be created from these levels and I don’t think the management team wants that. I think they believe they can turn the business around so it doesn’t get to that point.”
- However, he did also go on to explain that restructuring and breaking up the company would be the right move in his opinion:
- “In my mind, the right structure is a break up. In my mind, the right structure is a theme park-anchored equity, the TV networks moved off into a structure where perhaps private equity with that traffics and challenge assets, cashflow challenge assets at low multiples would be interested and a content library that’s exceptionally valuable and could be of great use to any number of tech platforms which I see as really the gravitational center for video generationally, going forward.”
- Check out the full interview here or below: