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Disney's M&A and Growth Investments Have Been Earnings Dilutive
While Disney's growth investments and M&A have contributed to total revenue growth of 41%
between FY 2018-22, EPS has declined 50% over the same period
Incremental Invested Capital ($bn)
$75
$18
$5
$52(1)
-$162bn Cumulative = DIS Market
Cap Today
$24
$20
$29
$25
M&A
CapEx
Content Spend
$35
$30
$4
$5
FY 2019A FY 2020A FY 2021A FY 2022A
Disney Adjusted EPS
$7.08
FY 2018A
Reduced 50%
$3.53
FY 2022A
Source SEC fings, Facto
Note: (1) M&A invested Capital calculated as the $71bn equity purchase price of Fox less 50 ton of acquired net cash and less the proceeds from deal-related divestitures including $11bn of RON sale proceeds
54bn proceeds received from the sale of YES, less eauty investments including the book value of investments in Endemol Shine ($188mm. DratKings ($95mm) as of 6/30/18 (Form 6K Ned by Disney dated
3/27/19, less Hulu investment (54bn) based on the repurchase of AT&T's 10.0% stake in April 2019 for $1.43bn, implying total Hulu valuation of $14.36 Fax held a 30% stake at the time of acquisition by Disney
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