Disney Doesn’t Plan to Buy More IP Amid Warner Bros. Discovery Battle

While Disney is watching the takeover of Warner Bros. Discovery from the sidelines, CEO Bob Iger said the battle has made him appreciate the value of his own company.

“If anything, the battle for control of Warner Brothers Discovery should emphasize or cause investors to appreciate the tremendous value of our assets, particularly our IP, which includes, obviously, all of our brands and our franchises. And also, let’s not forget ESPN,” Iger said on Disney’s earnings call Monday.

Asked whether the pending deal, and Netflix’s and Paramount’s fight for Warner Bros., has changed Iger’s thinking about monetizing Disney’s IP, Iger said “I don’t really feel that we have a need to buy more IP. We’re just going to continue to create our own.” He highlighted the long-term value of Disney’s film slate, which he says crosses over onto the company’s streaming services as well as into the parks. In particular, he highlighted the billion dollar releases of Zootopia 2 and Avatar: Fire and Ashas well as the upcoming opening of the World of Frozen in Paris.

He went on to reflect on Disney’s own acquisition of 21st Century Fox, which was completed in 2019 for $71.3 billion in cash and stock, and which he said was “ahead of its time.”

“I think it was extremely well priced, considering what’s being offered for the Warner Brothers Discovery assets,” Iger said.

In comparison, Netflix has submitted an all-cash offer to acquire Warner Bros. Discovery for approximately $82.7 billion, including debt. The deal would include Warner Bros. film studios and streaming assets, while Discovery Global and the cable channels would be spun off into a separate company. Paramount has submitted a $108.4 billion offer to acquire the entire company, but so far it has been rebuffed. In turn, Paramount has turned hostile and plans to make its case directly to Warner Bros. shareholders, asking them to reject the Netflix deal.

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