Latest / The Curve / TCW54: Is Disney in a naughty little three-way?

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TCW54: Is Disney in a naughty little three-way? · The Curve

• 0:00
  Hi and welcome to the Curve Weekly. The podcast that keeps you up to date with all the money,
• 0:06
  business and stock market tea. Everyone should experience for us at least once in their lives
• 0:10
  and Annie shouldn't miss out just because she can't afford it. Help me, I'm poor.
• 0:15
  I think it's all turning to custard work. Like our podcasting career,
• 0:21
  where used to be so I used to be so attentive with like we must record in the
• 0:27
  Tuesday or I know. I would definitely say I know. Yeah. In terms of like the light, the sound,
• 0:34
  not blah blah right now. I mean yesterday we recorded a introduction to a podcast in your car
• 0:40
  because we'd forgotten to do it. And now I've set myself up in the family kitchen with
• 0:46
  doors wide open just for anyone who doesn't know audio. Can you hear my dad coughing in the background?
• 0:51
  Is that your mic keeps rubbing? Oh great, sorry. I'm trying to hold it up because it's falling down.
• 0:57
  You know, it's just turning to shambles. I don't think it shambles. I think it's just you
• 1:01
  leaning into a bit more of a relaxed lifestyle. I can't enjoy it. Bless I'm staying at my sister's
• 1:07
  house and her two kids were up last night, like just kept waking up and crying and I was like,
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  oh I was like gosh. It's nice to not have children. Yeah.
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  Yeah. Yeah. It's so like it's so amazing. I kind of forget like that period there constantly
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  when their kids are young. And it was almost like a reflection of I need to give my friends and
• 1:34
  like my friends a bit more I guess compassion when they've got young kids. If they've been up
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  like four times in the night, no wonder you're a bit like not yourself or canceling a lunch and
• 1:44
  you're like, what the hell? Yeah. I saw this me the other day and I was like, you know that you
• 1:49
  can tell your friends that don't have kids and they're like, do you want to go to Africa on Friday?
• 1:52
  And I was like, that's so true. That's so what I do. Hi, anyone available for a worldwide trip
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  in two days time? Yeah. Yeah. Um no. Me, me, Ke. Oh my god. Do you know what I had to do
• 2:05
  the other day? I had to take the morning after pill. Oh god. I was like, am I 16? Like my friend had
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  to pick me up from a boy's house and we were meant to hang out. And I was like, I know that we
• 2:19
  were meant to go to Pihar and do the waterfall walk, but actually I'd like to go to the countdown
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  pharmacy because I need the money. Oh my goodness. Wow. I never, I always am so careful.
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  And this time I don't know what happened and I was like, I actually felt so awkward. They're like,
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  so when did this happen? You know how to fill the form out? You're like three hours ago.
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  Three hours. It's not awkward. The pharmacist is like, but I just think like you're not the first
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  person. You know, it's like, yeah. Oh. Anyway, let's just let's hop into some actual
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  thing. You find someone's trying to sing the serial in the background. Oh, Dad, could you
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  keep it down? Would you? Oh, Dad, stop it. No, stop fuck this one. Anyway, finance news.
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  Can we like a fun jingle or something that goes like from our chat to this so that you don't have
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  to be like, anyway, you know, like we must we should do that. Emily, could you please help and
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  find some fun sound effect? Yeah, we need like a segue. I was trying to think of one with like kids
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  and then I said, oh, nothing about today's podcast is about children. And then it's like,
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  morning after pool. No, nothing's about the morning after pool. So we're going from morning
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  after pool to we work. Oh, there can be a few people at we work that need to take the morning
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  after pool. I agree. The amount of people that meet at work and co-working spaces, no joke.
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  It's something like 70% of people meet at work or through work relationships. Maybe I just need
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  to hop around to different industries because the radio industry didn't have much for me. Neither does
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  the music industry. Advertising seems to be where everyone meets. So you're him? I reckon finance.
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  You haven't met one boy in finance. There's lots of boys. I've met lots of boys. Just not
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  the boys I like today. No, I mean, I'd like to date. Anyway, we work. So remember that IPO did
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  really, really well. Then COVID hit and everyone started working from home. So people didn't need
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  co-working spaces. And so it's kind of it's sheer prices falling off the cliff. But now the founder,
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  Adam Newman, has planned to take over the company and buy it out of bankruptcy, which is a bit of
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  a spinner hold on. So he's already the owner and he wants to do that. Well, yeah, it's because the
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  sheer prices fall in so much. He's like, you know what? There's a whole bunch of assets. There's
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  a whole bunch of liabilities. But he's partnered with a hedge fund called third point out of New York.
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  And he's like, hey, mate, let's buy this business because there is actually still value in the business.
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  And so this is kind of what can happen in companies that go bankrupt. So which is why she hold
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  us tend to hold on to these shares. But it is, it is pretty risky. But it kind of means it's not
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  going to disappear. So it might get broken up slightly. They might buy some of the assets. But
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  essentially, it's pretty good news for we work and means that we might still see it signs around
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  and we might still see co-working spaces, which is might we might say law. Yeah. So yeah, so that is
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  exciting. I kind of thought this would happen. Is that weird? I didn't think it was the end of it.
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  I don't know why. Yeah. There is something like 15 billion dollars of assets that the company
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  still has. So there's value in that. Billion. Good. Yeah. So still 15 billion dollars of assets.
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  Yes, there's about 20 billion dollars of liabilities. So that's like leases, for example,
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  that they have to pay on certain contracts. But there's still value in this business. And Adam
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  Newman is worth about 1.7 billion. So he's got a bit of cash. And so he can go to this hedge fund.
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  He can go to banks. He can go to other places and get funding to purchase back we work, which
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  is quite exciting. Yeah. And he's actually started his own company. So he's got this company,
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  the startup called Flow, which is a real estate company. And so he is effectively trying to buy
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  we work and fold it into that company. So watch this space. But we work did go from, and it's
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  peak, it was 47 billion dollar company, which is wild, wild, wild. So I just have got to tell you
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  something. What? You always say wild. Wild. Wild. Wild. Wild. And I just, I feel like I should have
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  said this two months ago. But I haven't. And I thought, you know what? You need some new
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  adjectives actually. Crazy. Wow. Wow. I mean, I don't know if you, if that sounds rude or not,
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  but I just thought I'd let you know, because you probably didn't realize it's like we use a
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  like or arm or where we all do. You know, and you're kind of like, you're like, it's wild,
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  like all the time. And I think because I listened to us record and then I listened to the edit,
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  I keep thinking, got a relisha tell it to like, open the repertoire to a few different like.
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  Okay. Good to know. Thank you. Yeah. Yeah. So this is at crazy mind blowing. Mind blowing.
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  Yes. And in other news, we have Disney. So remember a while back how Nelson Peltz,
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  which is Nicola Peltz Beckham's father, who is married to Brooklyn Beckham.
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  Oh, yes. So culture connection. Brooklyn Beckham's wife's dad. Yes. Yeah. Got it.
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  So he, oh my god, sorry, can I, I've got to tell you a funny story. When we went away to the
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  Cotswords in England, we went to Soho Farmhouse. So we were standing there and lying waiting for
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  our coffees and we turned and sorry, first of all, someone had seen as we walked in. What's the
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  young one? Romeo Beckham. Oh, yes. And someone said, oh my god, Romeo. Yeah. And here we are,
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  like clocking like 12 year olds. Some of our friends are pregnant. We were acting honestly like
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  children. And then we turn around and we're like, oh my god, it was Romeo. And as one of our
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  friends said, Romeo Beckham, she realized she was saying it to his face. He was like standing behind
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  us in the line. And we were like, oh my gosh. Like it was such an uncool moment. We were like, we're
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  like the boomers flying around being like, the genius. You know, I was like, oh no. He must get back
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  all the time. And we had to stand in the line waiting for these coffees for like five minutes.
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  All of us just like, oh, I want to leave. So, anyways, it was his brothers wife's dad.
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  Yes. And he has a huge fund. He runs a huge fund. And so what he's done is he's bought a whole
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  bunch of Disney shares because he doesn't think that Bob Eiger, which was the returning CEO,
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  has got it in him to turn around Disney effectively. Well, thanks. He's not doing good job.
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  So he's bought a bunch of shares. He's trying to get a seat on the board so that he can take
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  control and effectively dictate how the business is run. Anyway, so that's been going on.
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  And there's a bit of animosity because it's like someone coming into the curve and being like,
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  oh, you guys are doing a shit job. So arrogant. Yeah, I can do it better. And so there's a bit of
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  animosity between Bob Eiger and Nelson Peltz. Now there's another activist investor. It's
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  called Blackwell. It's the company name. And they've now become active investors and are trying
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  to do something different to what Nelson Peltz was trying to do. And different to what Bob Eiger is
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  trying to do. So you've got three competing parties now. And it's getting quite juicy. They're all
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  like saying, no, I think we should be doing this. I think we should be doing that. I think you
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  should be leaving. I think I should put in this replacement. And it's just getting. So mess it.
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  Almost like it's own Disney series or Netflix series. It just sounds like a massive ego fight.
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  Yeah, pretty much. Yeah. Also, sorry, do you look in that scenario and you look at the three people
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  and ask yourself who actually has the expertise to make better decisions than other people?
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  Why is Old Mate Peltz all of a sudden think he knows how to run Disney? Does he run a company
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  like that before? Yeah. So a lot of these huge funds will buy large stakes and then they'll put
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  their own expertise into businesses, turn them around and then sell their stake or their share
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  holding for much higher. Because the share price goes up eventually. Okay. So that's why they do it.
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  And a good hedge fund or a good activist investor, whatever you want to call them,
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  they will have a good track record of doing this. And therefore, when they do get a set on the board,
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  all they do by large share holdings and companies, the rest of the investors are like, oh my god,
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  great, because you've got a great history of doing this in the past. If the share price goes up,
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  that benefits you and me as an investor. So that's kind of why people get a bit excited when you
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  get activists investors on board. Now, it's not guaranteed. It's not every time there's an
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  activist investor that things turn around. You know, Bob, I could really kick in his heels and be like,
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  no, I'm not leaving. I don't think the strategy is good. Get lost. Or it could take ages to play out.
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  It could be four years, five years, and then Nelson Peltz might be like, you know what,
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  screw this. This is too hard basket. I'm going to go and look for something else. So it is about
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  dependent on the activists and best of who they are, their history. But what they're proposing,
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  so Blackwell is proposing to split the entertainment company into three separate companies. Because
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  they believe that one plus one plus one equals 10 rather than three. So they're thinking, you know,
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  what, we can create more value if we split this company into three. And that's a sports division,
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  an entertainment division, and a resorts division. I think that's clever. Yeah. So it's almost like
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  they're saying, Blackwell saying, you know, Disney's trying to do too many different things. Netflix
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  is just focused on streaming. And it does that so well, whereas Disney's trying to do theme parks and
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  sports and hospitality and real estate and all these other things. And it's like, since when are
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  they selling houses? No, no, no, sorry. They own the theme parks, which is a theme park. Yeah.
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  Yeah. So that's actually, they own 80 billion dollars of real estate.
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  80 billion. So you, they're saying you spin that off into its own company and would be much
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  more appropriately valued than it is locked in or kind of hidden away in a big entertainment company.
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  So yeah, it'll be interesting to see how this plays out as well. But now that you've got another
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  activist investor in there, it is getting a little bit juicy. Spicey, spicy. Yeah. But I reckon Netflix
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  will probably do a series on what happened at Disney. Quite funny. Getting a computer to do a Netflix
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  series on you anyway. If it was on the beckons, if the beckons were involved, I think I would be
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  interested. Oh, I don't know. It's like Nicola Peltz, because I find their relationship fascinating.
• 13:22
  Same. I don't know why. 21, are you married? Like 21. I was so immature, it's not fair. I know
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  there's people that are way more mature than that. But I just look back at my 21 year old self. And
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  if I had been like, I love you, baby, I love you so much. All over social media. I'm being so
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  embarrassed talking back at it. I did think that too. But then I thought, then I watched the
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  Beckons and realized how young his parents got married. They were like 21 as well. They're
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  following on. But I agree. It's like I've changed so much, I hope, since I was 21. Like if I met
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  my husband at 21 and now 14 years later, I'm just such a different person. I'm in the same
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  old hope that I've grown a lot since then. And then to think who I'd be attracted to it 21,
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  comparatively to now. Oh, totally. So different. And I was more attracted to like the cool guys,
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  not the guys that like treated you well. You know? I would have been in a great relationship.
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  Oh, my God. Imagine you are thirdly married to that absolute tosser. What's that? Would you
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  rather, would you rather marry a person else if it didn't need to or do your first job the rest of
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  your life? I don't know. I've always said, I'll definitely marry the guy lost my virginity too.
• 14:38
  Oh, so awesome. Speaking of your tweenies, do you know who or what, sorry, turned 20 this week?
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  Apple. I think you'd be quite shocked. No, Apple's like Microsoft. Apple is so old. I think newer.
• 14:54
  Tisla. No. Can you give me some other clothes? Like, can I have a cloth? What about hand novel?
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  I knew you'd do something like this. So it's like foot, something, is it?
• 15:12
  What's another word for, no, what's another word for novel? I know I'm trying to thank
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  of no like book. Oh, my God. Facebook. Oh, my God. There's Facebook. Facebook.
• 15:26
  Jesus. God. You know, this is only a half an hour podcast, babe. We've got to be quick.
• 15:31
  We've got to be more on the pool than that. Facebook.
• 15:33
  Facebook. Never heard of that company before, but yeah. Facebook turned 20 this week.
• 15:42
  Wow. Happy birthday. Happy birthday, Facebook. But yes, it was its birthday and it had an amazing
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  financial result that came out and it shares with up 20 percent. Wow. Adding 200 billion dollars
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  to the company's value, which is the biggest one day move in Wall Street history. In Wall Street
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  history. Wow. Sorry, sorry, sorry. No, it is interesting. I'm just trying to think about it.
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  So in Wall Street history, it's the biggest company movement that's ever happened in one day.
• 16:17
  Yeah. Adding 200 billion dollars in value to a company in one day is the biggest move in
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  Wall Street history for one day move, which is crazy. Me, so, sorry. Yeah. So quite wild that a
• 16:30
  20 and a while. Wow, fuck it. Oh gosh. It's like calling someone out for when they say, um,
• 16:40
  you can think of as saying, um, yes. So it's share price rose 20 percent and added 200 billion
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  dollars to its value. You'd best start if you had invested when it was lower and then you could
• 16:52
  pull that money out. Totally. You just invested for a day if you invested. You'd have to invest
• 16:57
  quite a lot. But yeah, anyway, but yeah, they were talking a lot about the future, the metaverse,
• 17:01
  all of that. And we've kind of heard them talking about that. Oh my god. What came out about the
• 17:05
  metaverse? I'm kind of interested though. Well, they're still investing billions and billions
• 17:08
  dollars. But I think the key thing that investors noticed was just how much it's core apps. So it's
• 17:13
  WhatsApp, Instagram, Facebook, actually still crushing it, even though 20, 20 years in. So it has
• 17:21
  3.2 billion people a day still using its apps. It's enormous. Do you know there's only 7.8
• 17:28
  billion people in the world? Yeah. So that's like what nearly a third of the world is using their
• 17:34
  apps every day? Every day. I know. Holy shit. Imagine having a business that touches that many people.
• 17:41
  That's crazy. But also, you know, this whole celebration was a bit short live because Mark Zuckerberg's
• 17:47
  actually been in front of the Senate committee in the US of concerns of child safety, of its apps.
• 17:53
  So a lot of parents are concerned. And they've been of quite a few suicides, which isn't very,
• 18:00
  isn't very nice to hear around the use of their apps and the influence they have. And so there's
• 18:05
  been a whole bunch of social media companies in front of the Senate just being like, what are you
• 18:09
  doing to make your platforms more safe for children? So it's so hard though. I mean, and also,
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  I'm not trying to take away the fact that they need to fully take responsibility to put things
• 18:20
  in place to protect people and their mental health. And I mean, I'm definitely just professing
• 18:28
  this by saying I'm not trying to say that that's not incredibly important. Yeah. But also,
• 18:32
  like there's so many downsides to so many companies. There's no way that they would have realised,
• 18:40
  or maybe this is naive, how badly it would affect people. And then how do you counteract that when
• 18:46
  you're so far down the rabbit hole? It's like the whole point of wanting people to be addicted to
• 18:50
  your apps is to grow your business, but then the downsides that so many people are being hung.
• 18:55
  You know, it's like it's just, it'll be so hard to find a way out of that.
• 18:59
  And it's still such a new space, you know, with TikTok, Instagram, the controls are still being
• 19:04
  developed in terms of what children can and can't see and who decides that. And, you know,
• 19:10
  where the restriction should be, it should be 16, should it be 14, should it be 18, like all of that.
• 19:15
  And so, should there be restrictions on time limits? Should it be the current responsibility,
• 19:21
  or should it be the companies like Facebook and TikTok? And I think it's more the algorithm,
• 19:25
  you know, with a TV, you know what's playing when you can turn it off. Where is WoTro? Instagram,
• 19:33
  for example, or TikTok, you don't know what your children are being fed and what they're there.
• 19:37
  It's so true you have no other site as to like what they're absorbing.
• 19:40
  And so if they're feeling a bit lonely, you're down in the dumps and then they get
• 19:43
  getting fed the stuff that fuels that, then they're kind of in the spiral. So it is tricky, but
• 19:50
  yeah, do we interesting to see what comes out of this? And no doubt some measures around child safety,
• 19:54
  but also the companies still doing so well. So if they did have to put in some restrictions,
• 20:00
  I'm sure it's not going to impact them too much. And then lastly, before we finish,
• 20:06
  today is, well, in the US, it's Monday today, but it's actually, Sunday in the US,
• 20:12
  it's Super Bowl Sunday. So I thought I'd have a few fun stats. Do you know the average price of
• 20:19
  a ticket, so to the Super Bowl? How many tickets do they sell? I think there's 70,000 in the stadium
• 20:25
  and Las Vegas. Okay. I don't know. I mean, a Taylor Swift ticket is going for like a thousand
• 20:30
  dollars these days, right? So maybe a thousand. Maybe two for one. You buy a Super Bowl, you see her,
• 20:37
  you see the Super Bowl. Oh, they would lose my shirt. I know. I wonder how many people actually,
• 20:44
  just buying Super Bowl tickets to see her? Wait, is she's playing? No, she's pretending to support
• 20:49
  a boyfriend. Of course. Oh, my God. Oh, my God. So all these like Taylor Swift fans are going to
• 20:54
  be trying to get tickets, not even watch the game, but just because they can spy her. That is so
• 20:59
  funny. Quite crazy. How much are they? They're averaging $10,000 a ticket. Oh, no. There's no way
• 21:06
  of 14 years buying that. No, I know. Yeah. Holy moly $10,000, which is the highest on record that
• 21:14
  they've ever been. And some are reportedly going for on like resale websites for over $41,000
• 21:21
  for a ticket to a game. Like, I'm just baffled. Do you know what? That's like, okay, I don't
• 21:28
  I'm not very good with zeros, but there's what. So the amount if they made, if there was 70,000
• 21:33
  people buying tickets for $10,000, is that 700 million? They're not sure. Well, it says seven,
• 21:40
  and then there's one, two, three, four, five, seven, there's eight zeros. Yeah. Yeah, wild.
• 21:46
  Wilds. Oh, my God. Sorry. I know. Do you say it a lot? I'm so glad I brought it up now. Yeah.
• 21:51
  Jesus. Okay. Yeah. So the $41,000 at summer, reportedly going for it's about 93% higher than what
• 22:00
  tickets were in 2019. So we talk about inflation here. It's been so much inflation as
• 22:05
  their ball tickets, which is crazy. But also another set, a one minute slot at the half-time show
• 22:12
  for advertisers. So you know how advertisers go crazy to create really epic ads. And they're
• 22:18
  usually quite funny. Like I quite like watching them. I think they, because they've been so much
• 22:22
  money producing them. So I know the world will talk about them to totally. Yeah. And it's usually
• 22:27
  the premium premium brands that can afford this. So a one minute slot at the half-time show at
• 22:32
  the Super Bowl costs advertisers $14 million for one minute. One minutes of advertising.
• 22:40
  But imagine what you would get out of that. Imagine if we just shuffled on stage for a minute,
• 22:44
  did a little interpretive dance held up. I like want to learn about money, listen to our
• 22:48
  podcasts. Like we'd probably be the number one finance podcast in the world. Yeah, true. If you
• 22:53
  don't want to give us $14 million, that would be epic. Yeah. If anyone wants to see us at the
• 22:58
  Super Bowl half-time show, please. And we're going to say you couldn't. We need to be happy to.
• 23:03
  And imagine would you do it? I would 100% do it. If someone was like, we've got a one minute slot
• 23:10
  at the half-time show, would you and so I've been keen to go on there and just talk for a minute
• 23:14
  about? You'd do it. I would be like, oh my god, I would go for a minute and a half and just
• 23:20
  eat until the next person's time. I reckon I'd have to be either like incredibly drunk to get
• 23:25
  myself out there. Yeah. Or I'd just need to be your backup dancer. Like I honestly don't reckon I
• 23:30
  could get a word out. I'm still struggling to speak to like 200 people in a ventilator line.
• 23:35
  That's true. The entire world. It's the Super Bowl. I'd probably pee my pants and then I'd be the
• 23:40
  girl at Peter Pants on. Oh my gosh, I'm going to try a viral and then the business would benefit.
• 23:44
  So this would be great. Yeah. Okay. Yeah. Anyway, we've got another podcast record. So yeah,
• 23:49
  got to go. Got to go. See you later. Have a good week. Bye.
• 23:54
  Thank you so much for listening to The Curve Weekly. Make sure you hit the subscribe button to stay
• 23:58
  up to date with all the many business stock market news. And if you like what you heard,
• 24:03
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• 24:07
  please don't leave one if you hate it. No, but in all seriousness, could you please leave a review
• 24:12
  because it really helps other people find our cute little podcast. And we hope you have a good
• 24:16
  week and see you next Monday. Bye. Bye. So yeah, see you next Tuesday. Wow.
• 24:25
  See you next Tuesday. I mean Monday.