Disney’s investment in Playbuzz
The Walt Disney Company (DIS) is extending its presence on multiple platforms. The Wall Street Journal stated at the end of last month that in a bid to extend its presence in online media, Disney invested in Playbuzz, which creates quizzes and games.
Playbuzz’s content has appeared on websites including MTV.com (VIAB) and USAToday.com. Playbuzz also provides an online platform for its clients to create customized content.
According to the Wall Street Journal report, Disney and media investor Saban Ventures have invested around $15 million in Playbuzz.
Last year, Disney also invested around $200 million in Vice Media. Other media companies’ online media investments include Comcast’s (CMCSA) $200 million investment in BuzzFeed and 21st Century Fox’s (FOXA) $150 million investment in DraftKings.
Rationale behind the investment
Disney uses a franchise-focused strategy that will enable it to monetize its IP intellectual property across its segments for a long time. The company’s 11 franchises have had retail sales of more than $1 billion in the last two years. Disney is undertaking many strategic initiatives to boost the presence of its brands across multiple platforms and to expand the reach of its brands.
Disney’s investment in Playbuzz could be part of this strategy. The company’s investment in Playbuzz could give it an opportunity to push its brands on Playbuzz’s online platform. Playbuzz’s online platform allows clients to create customized content, and Disney could use this to highlight the display of its brands. The Playbuzz website already has a Disney tag that lists Disney Quizzes, polls, and lists centered around Disney characters.
Disney makes up 0.83% of the SPDR S&P 500 ETF (SPY). SPY also has 4% exposure to the computers sector.