Disney to sell regional sports networks
Walt Disney (DIS) has reportedly decided to sell its 21 regional sports networks (or RSNs) to Sinclair Broadcast Group (SBGI), which is the largest US broadcast station owner, for more than $10 billion. The deal comes after Tribune Media Company (TRCO) canceled the sale of 42 TV stations in 33 markets to Sinclair last year. The sale of the RSNs was a condition that US regulators imposed in order for Disney to acquire the premium media and entertainment assets of 21st Century Fox, which happened last month. Apart from Sinclair, Liberty Media and Big 3 Basketball were also among the interested bidders for Disney’s RSNs.
Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
Disney to reduce debt
Disney’s debt load is high due to its purchase of 21st Century Fox (in half cash and half stock) and investments related to the launch of the Disney+ streaming service, which is expected on November 12. However, the company is making efforts to reduce its debt load and has already reduced the debt amount from $26.09 billion last year to $20.66 billion in 2018. The company had suspended its share repurchase program temporarily amid a huge debt load. Disney expects to resume share repurchases after it improves its cash-to-debt ratio.
The sale of its 39% stake in London-based Sky to Comcast (CMCSA) for ~$15.3 billion in September has helped Disney to reduce its debt load and invest in its Disney-branded direct-to-consumer offering. The sale of its regional sports network is expected to help the company cut its debt levels.
Semiconductor company Advanced Micro Devices (AMD) rose 5.5% on May 2 to close trading at $28.29.
In the last month the CSI 300 is down 11.5%, much more than US indices.
JCPenney (JCP) is slated to announce its results for the first quarter of fiscal 2019, which ended on May 4, on May 21.
The key point of contention in the US-China trade dispute is the large trade deficit the United States runs against China.
On May 16, the Labor Department reported jobless claims for last week. Initial jobless claims fell by 16,000 to 212,000 for the week ended May 11.
Jeffrey Gundlach recommended investors take advantage of the volatility in interest rates at the recent Sohn Conference.
Tesla (TSLA) has fallen 4.2% as of 11:55 AM EDT on May 17. While US equity markets opened in the red today, they've recouped their losses.