Despite The Walt Disney Company’s stale financial outlooks as of late due to the COVID-19 pandemic impacting the majority of its businesses, it seems some investors are making some big purchases while stock prices are low.
According to The Hollywood Reporter, Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF) has purchased over 5 million shares from The Walt Disney Company, valued at just under $500 million. The fund disclosed the stakes in a regulatory filing Friday afternoon.
PIF has also invested in a number of other large U.S. companies, including Facebook, Starbucks, and even Carnival Cruises, which has also been hard-hit by the health crisis.
The new acquisitions were purchased on the public market as the fund wishes to expand to expand its U.S. presence in the wake of the COVID-19 pandemic. It currently has over $10 billion invested in the U.S. equity market.
Source: The Hollywood Reporter
So instead of selling out to the Chinese, Disney and Hollywood will be selling out to the Saudis. Great. Get ready for more needles pandering to these markets.
If the shares were purchased in the public markets, then they were not purchased “from” the Walt Disney Company, but rather from other holders of Disney shares, which is a very important distinction. Did Disney sell shares to PIF? Or did PIF buy shares from others?
And this is what happens when you shutdown one of the strongest countries in the world. Others will bounce and take down the vulnerable.
Oh wow, I always considered Disney as quintessentially American. But maybe not for long I guess.
Also noted in the Hollywood Reporter article is that the PIF’s stake in Disney (as well as their stake in Facebook) represent “just a fraction of 1% of each company’s equity”, for all those worrying that Disney is “falling to the Saudis” or whatever.
So we will sell out to everyone that does not believe in our way of life. Get the point people the world does not like us or our God. They only want what we have to offer. They just dont understand thats how we built what we have. Not the other way around.
So what exactly does this mean?