Anne Sweeney’s career story is an inspiration to all those who hear it. When Anne accepted a job during her college years at ABC Studios, no one knew where it would lead. More than twenty-five years later she became the President of the Disney-ABC Television Group and was titled “The Most Powerful Woman in Entertainment” by the Hollywood Reporter.
Anne first began her career when she started working for Nickelodeon as an assistant program manager. After rising through the ranks at Nickelodeon, Anne moved on to help establish FX Networks. There, she decided to expand the network into the field of cable television.
Although she experienced great success, Anne desperately wanted to return to children’s programming. She got her wish when she was offered the opportunity to become both the Executive Vice President of Disney/ABC and the President of Disney’s premium cable network.
One of Anne’s first goals as President was to bring Disney Channel into more homes by changing it from a premium service, limited to only higher income homes, to a channel offered on basic cable. She also added more programs that were geared towards the “tween” age bracket. Within just a few years, Disney Channel reached over three times as many homes.
What should you know about the Company from an investment perspective? Here are some current news items:
Analyst Ratings: Most analysts have issued a “Hold” rating, although almost just as many have given the stock a “Strong Buy” rating. The average of recommendations is currently at “overweight,” which falls in between “Hold” and “Strong Buy.”
Recent Quarter Results: In the most recently reported quarter, the company stated that it saw net income increase substantially from last year’s $3.37 billion to $4.69 billion. Disney’s well recognized brands and inspired content gives it much potential to continue growing in size and adding value to its stock.
Recent Developments: Disney plans to spend over $1 billion overhauling its California Adventure theme park, making it the most expensive makeover to date. The massive project will begin next year and is expected to take about four years to finish.
On the downside of things, the weakening dollar could slow down business. Another concern is that the company will most likely have to increase its online advertising budget as more people increase the time spent in their computer chairs and decrease the time they watch TV.
Bottom Line: Disney’s plan to update its theme park is a great strategy on a long term basis, but could hinder returns in the short term. However, the company has several highly-rated films just coming out on DVD and number of feature films in the pipeline for next year which could help make up for the renovation costs.
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