Disney’s Streaming Service is Already Worth Over $100B

According to Barclays, the market has valued Disney’s recently released streaming business at $108 billion.

On the first day the service launched back in November, Disney had said that it gained 10 million subscribers.

Since the service launched, which includes Disney+, Hulu, and ESPN+, shares of the company’s stock are up roughly 6%.

Barclays has estimated that the value of the streaming services by calculating an enterprise value for the core business of Disney, and then subtracting that estimate from the company’s current total enterprise value of roughly $320 billion.

Enterprise value is a measure that combines market cap with short- and long-term debt.

According to Barclay’s, Disney core business, which includes movie studio and parks, is at $213 billion. This means the company’s direct-to-consumer streaming business is valued at around $107 to $108 billion.

“Just 6 weeks into launch, Disney is already pricing in a streaming business worth $108bn, 69% of Netflix’s enterprise value which has taken 13 years to get here,” Barclays said.

Recently Rosenblatt Securities analyst Bernie McTernan said Disney+ will reach 25 million subscribers by the end of the first quarter.

Disney itself has set a target of 60 million to 90 million subscribers globally by the end of its 2024 fiscal year.
Disney shares are up more than 30% in the past year.

Disclaimer: We have no position in Walt Disney Co. (NYSE: DIS) and have not been compensated for this article.