Samantha Greenberg of the newly launched Margate Capital laid out why she is long Disney (DIS) at the recent Robinhood Investor Conference.
Investors are concerned about whether ESPN can compete with live streaming packages, and what that means for Disney. Those fears are misplaced, in Greenberg’s view. ESPN is about 25% of Disney’s EBITDA, so its actual impact on Disney is limited. In addition, ESPN has secured partnerships on all existing and pending streaming services like Hulu and YouTube, according to Greenberg’s presentation.
While Greenberg thinks fears about ESPN are over done she doesn’t rule out an ESPN spin-off and the value it would add.
In Greenberg’s view, a spinoff could boost Disney’s stock to $147, about 50% higher than its current price, as it would become a stronger standalone consumer company.