The release of Disney+ adds to the streaming wars. Yahoo Finance noted today that with Disney+, the parent (Disney) is now has a market cap of Netflix. Does Netflix raise to the level of praise with the likes of Disney??
As Yahoo pointed out, Disney has a market value of $268B vs Netflix's $124B
As I start to peal this onion, the first question is what are the outstanding shares:
- Disney outstanding shares = 1.8B
- Netflix outstanding shares = 452M
Credit to Netflix as they have not be playing the share buy back game like many out there. But who would need to inflate their share price when markets do it for you.
Disney on the other hand in 2008 removed shares from the market. In 2008 Disney had around 1.9B shares outstanding. Every year through Q4 of 2018, Disney bought back shares every year through Q4 2018 by 400M shares. Basically Disney bought back nearly the amount of outstanding shares of Netflix. Interestingly Disney quickly release shares back into the market from 1.5B to today's 1.8B level.
