See, I always think of Elon as an incredible visionary moreso than a business man. He’s successfully commercialized Space (SpaceX) and almost single-handedly forced the auto industry to go electric, among his other ideas/ventures.
What do we keep saying Disney needs? Someone who is equal parts visionary and business savvy. Elon actually kind of fits that bill.
Then I can start going down paths where businesses intersect. Latest sponsor for an updated Test Track? Tesla, of course! And right next door? Mission:SpaceX! How about replacing the People Mover with a Hyperloop? (Or maybe the Monorail.)
Are you trying to say that SpaceX is profitable? Because if not (and I don’t think it is) I’m not sure I’d say he’s successfully commercialized space when it is happening as a loss leader. Eventually it might make a profit, but…
Since SpaceX is a private company, they don’t have to disclose certain financial reports. So may be hard to tell if they are really profitable like you would a publicly traded company.
Of course, SpaceX was recently valued at 100 billion dollars, which makes it the 2nd most valuable private company in the WORLD. So there’s that…
Are you mixing your terms here? Because what you indicated seems totally fallacious. DIS total debt is $51.6B and in Sep 2019 it was $46.9B. Disney was worth $127B then and is worth $163B now - the debt level has been around 1/3 of market cap in recent years - nowhere close to the debt matching the company worth.
Now current liabilities are on parity with current assets. Is that what you were really referencing? While that’s not marvelous, given that Total Assets have been running ~double Total Liabilities, I’m not sure the current really matters that much as DIS can easily borrow to cover any shortfall in the near term.
Definitely agree on SpaceX being private which makes any profit/loss very opaque. But I see no evidence it is profitable.
And I’m not sure I’d hold the $100B valuation of SpaceX with any esteem. Some guy valued Twitter at $44B and now he’s bleeding cash and begging strangers for $8 a month while he lost another $23B in his main company’s stock. Wonder if he’ll have to take SpaceX public to try to recoup some of his losses? That would quickly answer our profit/loss questions at least.
There’s been snap decisions, public roll outs, then subsequent rollbacks over at Twitter, HOURLY. It’s kinda fascinating in a “glad I’m not a part of that” way.
Given the whole $8 thing, if that would translate to WDW, I imagine it’d be “everyone pays to enter a specific land on top of your ticket.” situation.
I am completely out of my element on this topic but the additional debt in '19 and the corresponding increase in equity is associated with the launch of Disney+, isn’t it?
Ditto. Love him or hate him personality wise, the guy has amazing talent and foresight. Anyone this wildly successful in building businesses deserves respect.
OK - that at least makes some sense. Yes, they took on a lot of debt with the Fox acquisition, but the equity of the company doubled at that point as well thanks to the purchase of all those Fox assets. Compared to a lot of companies DIS, does not have an incredibly high debt load. DIS is running ~2:1 Assets to Liabilities while Comcast (owner of Universal Studios) is ~3:2.
I dunno, could be interesting. as Disney CEO he could shut down the theme parks, turn them into rocket launch sites, hire Kanye West as chief strategist, fire 50,000 employees, throw a tantrum on twitter and then buy Facebook.
You forgot the “offer to hire back 25K of the CMs he accidentally fired the next week” step. I don’t think the theme parks would be a good playground for Elon’s impulsive experimentation. Maybe Disney+ which is effectively software driven or Genie+ would work for those quick changes…
How about replacing the People Mover with a Hyperloop? (Or maybe the Monorail.)
That would quickly answer our profit/loss questions at least.