Paramount Prepares for Opposition to Warner Bros. Acquisition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 26 2026
0mins
"Now Streaming" is The Fly's weekly recap of the stories surrounding the biggest content streamers.PLAYING THIS WEEKEND:This weekend's biggest new streaming content is the fifth and final season of Hulu'scomedy-drama series "The Bear." Meanwhile, Netflixsubscribers can catch season two of the live-action adaptation of "Avatar: The Last Airbender," while HBO Maxusers can watch the first episode of sketch comedy series "Life, Larry, and the Pursuit of Happiness," starring Larry David and produced by Barack Obama's Higher Ground Productions.PARAMOUNT/WARNER:Paramount Skydanceis preparing for opposition to its proposed takeover of Warner Bros. Discovery and anticipates that California Attorney General Rob Bonta and New York AG Tish James will argue that the deal violates antitrust laws that are allegedly being ignored by Washington, the New York Post's Charles Gasparino reported. Executives at Paramount "wake up every day thinking a lawsuit is being filed" by the pair of AGs and possibly a handful of other state AGs, the author said, citing a person with knowledge of the matter.Meanwhile, Paramount Skydance is ready to divest its movie distribution joint venture with Universal Picturesto assuage EU antitrust worries about its proposed takeover of Warner Bros. Discovery, Reuters' Foo Yun Chee reported this week, citing a person familiar with the matter. The concession offer, which follows a meeting with the bloc's antitrust regulators this week, will be submitted next Tuesday, according to Chee.ABC/FCC:Disney-owned broadcast network ABC has launched an on-air campaign calling on viewers to weigh in against the Federal Communications Commission's early review of its licenses and a separate probe of talk show 'The View', the Wall Street Journal's Joe Flint reported, citing the campaign. The FCC has said the license review is linked to an investigation into the company's diversity, equity and inclusion efforts, while its probe into 'The View' focuses on whether the show violated equal-time rules for politicians, ABC argues both investigations threaten free speech.ROKU/FLORIDA:Florida Attorney General James Uthmeier and Rokuannounced a negotiated resolution of Florida's enforcement action filed under the Florida Digital Bill of Rights. Under the agreement, Roku will enhance its child protection features by offering parents greater control over their children's streaming experience. This resolution does not include any finding of wrongdoing or civil fine. Roku has agreed to invest in the engineering resources necessary to implement these changes, estimated at $25M, reflecting a significant financial and operational commitment to this effort. Implementation efforts are expected to begin immediately, with full deployment nationwide anticipated within twelve months.INSTAGRAM FOR TV:Netflix shares slipped to start the week, with the streaming giant extending a recent selloff after Meta Platformsannounced it is expanding Instagram for TV to SamsungTVs across the U.S. Meanwhile, Bloomberg noted that research firm M Science cautioned about user trends at Netflix, saying data indicates the weakest global net additions quarter for the company since 2022. "Churn has picked up in the US and appears worse than what we saw during the 2025 price hike," the firm wrote.NETFLIX/UNHINGED:Netflix announced that Unhinged, a horror video game, will be available to play on June 30. "You can play Unhinged starting June 30, exclusively on Netflix, with no ads or in-game purchases. Just select it from the Games tab, scan the QR code to link your phone, and try to survive the night," the company said in a statement.STOCK PLAYS:Other publicly traded companies in the space include AMC Networks, Fubo, Amazon, and Apple.
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Analyst Views on DIS
Wall Street analysts forecast DIS stock price to rise
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 99.500
Low
123.00
Averages
137.29
High
152.00
Current: 99.500
Low
123.00
Averages
137.29
High
152.00
About DIS
The Walt Disney Company is a diversified worldwide entertainment company. The Company's segments include Entertainment, Sports and Experiences. The Entertainment segment generally encompasses its non-sports focused global film and episodic content production and distribution activities. The lines of business within the Entertainment segment along with their business activities include Linear Networks, Direct-to-Consumer, and Content Sales/Licensing. The Sports segment encompasses its sports-focused global television and direct-to-consumer (DTC) video streaming content production and distribution activities. The lines of business within the Sports segment include ESPN and Star. The Experiences segment includes Parks and Experiences and Consumer Products. Parks and Experiences consists of Walt Disney World Resort in Florida, Disneyland Resort in California, Disney Cruise Line, and others. Consumer Products includes licensing of its trade names, characters, visual, literary and other IP.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investment Opportunity Analysis for Disney Stock
- Attractive Valuation: As of now, Walt Disney (NYSE: DIS) has a forward P/E ratio of just 12.9, which is a notable 40% discount compared to the S&P 500, highlighting the stock's appeal in the current market, especially given its strong intellectual property portfolio.
- Earnings Growth Expectations: Management anticipates adjusted earnings per share to grow by 12% this fiscal year, with double-digit growth expected in fiscal 2027, and analysts predict a 10% increase in fiscal 2028, providing potential return momentum for investors.
- Diversified Business Strength: Despite the decline in cable TV, Disney's theme parks and cruise businesses continue to grow, while its direct-to-consumer streaming services like Disney+ and Hulu maintain strong positions in the industry, showcasing the company's success in diversifying its business.
- Market Concerns and Opportunities: While the market expresses concerns about Disney's legacy assets, the overall profits are rising due to the success of theme parks and streaming services, suggesting that investors should seize the current dip in stock price as an opportunity, considering the company's long-term economic moat.
See More
AI-Generated Actress Stars in Controversial Film 'Misaligned'
- Rise of AI Actors: The upcoming film 'Misaligned', featuring AI-generated actress Tilly Norwood, signifies the film industry's exploration of AI technology, despite Hollywood's concerns about its potential to devalue human artistry.
- Significant Cost Reduction: Particle6 claims that using Norwood instead of human actors can slash production costs by 90%, which may appeal more to film studios' profit motives than to the objections of actors.
- Value of Human Artistry: A spokesperson from the SAG-AFTRA actors' union argues that AI lacks life experience and emotion, suggesting that audiences may not be interested in computer-generated content disconnected from human experience, raising doubts about AI's applicability in film.
- Exploring Industry Boundaries: Despite the controversy, the film industry is actively exploring the boundaries of AI-generated content, as evidenced by the acceptance of the fully AI-generated film 'Dreams of Violet' into a major film festival, showcasing technological advancements and potential market demand.
See More
Disney Stock Faces Challenges and Opportunities Amid Industry Changes
- Stock Performance Issues: Over the past decade, Disney's stock has remained largely unchanged, primarily due to the impacts of the pandemic and shifts in home media technology, which have weakened investor confidence in its future growth and could negatively affect the company's overall valuation.
- Spin-off Discussions Raise Concerns: While analysts have considered separating Disney's parks business, this segment accounts for a significant portion of the company's operating income, suggesting that a spin-off could actually hurt the stock price, prompting investors to carefully assess the potential risks of such a move.
- Financial Data Reveals Challenges: In the first half of fiscal 2026, Disney's revenue rose 6% year-over-year to $51 billion, with the entertainment segment increasing by 8%, while the parks division contributed $5.9 billion in operating income, highlighting its critical role in the company's overall financial health.
- Uncertain Future Outlook: Although Disney Experiences is the only segment to report operating income growth in the current fiscal year, the long-term challenges posed by streaming competition and insufficient content development cast a shadow over the overall stock outlook, necessitating investor attention to the company's strategic adjustments.
See More
Disney Stock Stagnates, Parks Division Remains Only Growth Segment
- Stagnant Stock Performance: Disney's stock (NYSE: DIS) has shown little change over the past decade, indicating the company's struggles to adapt to significant shifts in the entertainment industry due to the pandemic and home media technology, which has diminished investor confidence in its growth prospects.
- Parks Division Growth: Despite overall revenue stagnation, Disney's parks division reported a 6% revenue increase in the first half of fiscal 2026, contributing $5.9 billion to the company's operating income, making it the only segment to show growth and highlighting its resilience in the current market environment.
- Controversial Spin-Off Discussions: Some analysts have suggested spinning off the parks business; however, given the synergies between the parks and content divisions, such a move could undermine Disney's overall value and potentially lead to stock sell-offs by investors.
- Content Development Challenges: Disney faces significant challenges in content creation, as evidenced by its reliance on the success of
See More
Analysts Remain Bullish on Walt Disney Co. Amid Price Target Adjustments
- Analyst Optimism: According to Koyfin data, 27 out of 30 analysts covering Walt Disney Co. have assigned a ‘Buy’ or higher rating, indicating strong market confidence in its future growth despite competitive pressures from Comcast.
- Price Target Adjustment: Raymond James has lowered Disney's price target from $119 to $111, yet the revised target still suggests an upside potential of approximately 11.5%, reflecting analysts' optimism about the company's long-term performance.
- Retail Investor Sentiment: Retail investors on Stocktwits are expressing ‘extremely bullish’ sentiments towards Disney's stock, with many believing the shares are undervalued, particularly in light of the upcoming AI advertising agent launch.
- Market Outlook Analysis: Despite challenges related to short-term park attendance, Wall Street remains largely bullish on Disney's growth potential, with JPMorgan recently raising its price target to $140, demonstrating confidence in its direct-to-consumer channels.
See More
‘Minions & Monsters’ Tops Box Office Despite Weakest Opening
- Box Office Performance: Over the Fourth of July holiday, ‘Minions & Monsters’ topped the box office with an estimated $61.4 million, although its traditional three-day weekend earnings of $36.7 million indicate a decline in franchise strength.
- Franchise Fatigue: The film's opening marks the lowest in the Despicable Me/Minions series, which has grossed over $5.6 billion globally, suggesting potential audience fatigue according to industry analysts.
- Profit Potential: With a production budget of approximately $85 million, the film is well-positioned to turn a profit if it maintains the strong legs typical of family releases, despite its disappointing opening.
- Market Trends: The holiday weekend capped one of the strongest summer box office seasons since before the pandemic, with family-friendly releases continuing to drive theater attendance, indicating a recovery in the market.
See More
Investment Opportunity Analysis for Disney Stock
- Attractive Valuation: As of now, Walt Disney (NYSE: DIS) has a forward P/E ratio of just 12.9, which is a notable 40% discount compared to the S&P 500, highlighting the stock's appeal in the current market, especially given its strong intellectual property portfolio.
- Earnings Growth Expectations: Management anticipates adjusted earnings per share to grow by 12% this fiscal year, with double-digit growth expected in fiscal 2027, and analysts predict a 10% increase in fiscal 2028, providing potential return momentum for investors.
- Diversified Business Strength: Despite the decline in cable TV, Disney's theme parks and cruise businesses continue to grow, while its direct-to-consumer streaming services like Disney+ and Hulu maintain strong positions in the industry, showcasing the company's success in diversifying its business.
- Market Concerns and Opportunities: While the market expresses concerns about Disney's legacy assets, the overall profits are rising due to the success of theme parks and streaming services, suggesting that investors should seize the current dip in stock price as an opportunity, considering the company's long-term economic moat.
See More
AI-Generated Actress Stars in Controversial Film 'Misaligned'
- Rise of AI Actors: The upcoming film 'Misaligned', featuring AI-generated actress Tilly Norwood, signifies the film industry's exploration of AI technology, despite Hollywood's concerns about its potential to devalue human artistry.
- Significant Cost Reduction: Particle6 claims that using Norwood instead of human actors can slash production costs by 90%, which may appeal more to film studios' profit motives than to the objections of actors.
- Value of Human Artistry: A spokesperson from the SAG-AFTRA actors' union argues that AI lacks life experience and emotion, suggesting that audiences may not be interested in computer-generated content disconnected from human experience, raising doubts about AI's applicability in film.
- Exploring Industry Boundaries: Despite the controversy, the film industry is actively exploring the boundaries of AI-generated content, as evidenced by the acceptance of the fully AI-generated film 'Dreams of Violet' into a major film festival, showcasing technological advancements and potential market demand.
See More
Disney Stock Faces Challenges and Opportunities Amid Industry Changes
- Stock Performance Issues: Over the past decade, Disney's stock has remained largely unchanged, primarily due to the impacts of the pandemic and shifts in home media technology, which have weakened investor confidence in its future growth and could negatively affect the company's overall valuation.
- Spin-off Discussions Raise Concerns: While analysts have considered separating Disney's parks business, this segment accounts for a significant portion of the company's operating income, suggesting that a spin-off could actually hurt the stock price, prompting investors to carefully assess the potential risks of such a move.
- Financial Data Reveals Challenges: In the first half of fiscal 2026, Disney's revenue rose 6% year-over-year to $51 billion, with the entertainment segment increasing by 8%, while the parks division contributed $5.9 billion in operating income, highlighting its critical role in the company's overall financial health.
- Uncertain Future Outlook: Although Disney Experiences is the only segment to report operating income growth in the current fiscal year, the long-term challenges posed by streaming competition and insufficient content development cast a shadow over the overall stock outlook, necessitating investor attention to the company's strategic adjustments.
See More
Disney Stock Stagnates, Parks Division Remains Only Growth Segment
- Stagnant Stock Performance: Disney's stock (NYSE: DIS) has shown little change over the past decade, indicating the company's struggles to adapt to significant shifts in the entertainment industry due to the pandemic and home media technology, which has diminished investor confidence in its growth prospects.
- Parks Division Growth: Despite overall revenue stagnation, Disney's parks division reported a 6% revenue increase in the first half of fiscal 2026, contributing $5.9 billion to the company's operating income, making it the only segment to show growth and highlighting its resilience in the current market environment.
- Controversial Spin-Off Discussions: Some analysts have suggested spinning off the parks business; however, given the synergies between the parks and content divisions, such a move could undermine Disney's overall value and potentially lead to stock sell-offs by investors.
- Content Development Challenges: Disney faces significant challenges in content creation, as evidenced by its reliance on the success of
See More
Analysts Remain Bullish on Walt Disney Co. Amid Price Target Adjustments
- Analyst Optimism: According to Koyfin data, 27 out of 30 analysts covering Walt Disney Co. have assigned a ‘Buy’ or higher rating, indicating strong market confidence in its future growth despite competitive pressures from Comcast.
- Price Target Adjustment: Raymond James has lowered Disney's price target from $119 to $111, yet the revised target still suggests an upside potential of approximately 11.5%, reflecting analysts' optimism about the company's long-term performance.
- Retail Investor Sentiment: Retail investors on Stocktwits are expressing ‘extremely bullish’ sentiments towards Disney's stock, with many believing the shares are undervalued, particularly in light of the upcoming AI advertising agent launch.
- Market Outlook Analysis: Despite challenges related to short-term park attendance, Wall Street remains largely bullish on Disney's growth potential, with JPMorgan recently raising its price target to $140, demonstrating confidence in its direct-to-consumer channels.
See More
‘Minions & Monsters’ Tops Box Office Despite Weakest Opening
- Box Office Performance: Over the Fourth of July holiday, ‘Minions & Monsters’ topped the box office with an estimated $61.4 million, although its traditional three-day weekend earnings of $36.7 million indicate a decline in franchise strength.
- Franchise Fatigue: The film's opening marks the lowest in the Despicable Me/Minions series, which has grossed over $5.6 billion globally, suggesting potential audience fatigue according to industry analysts.
- Profit Potential: With a production budget of approximately $85 million, the film is well-positioned to turn a profit if it maintains the strong legs typical of family releases, despite its disappointing opening.
- Market Trends: The holiday weekend capped one of the strongest summer box office seasons since before the pandemic, with family-friendly releases continuing to drive theater attendance, indicating a recovery in the market.
See More
