Walt Disney has struck a seven-year streaming, television, and media rights deal with the National Hockey League (NHL), marking the return of NHL to its platforms.
Though the company did not disclose the financial terms of the deal, Reuters has learned that it is worth between $2 – $2.5 billion. The partnership between Disney (DIS) and the NHL will begin from the 2021-2022 season.
NHL Commissioner Gary Bettman said, “Not only will this groundbreaking, seven-year deal enable the NHL to benefit from the incomparable power, reach and influence of The Walt Disney Company and ABC/ESPN, it sets a new standard in delivering our game to the most passionate and tech-savvy fans in sports in the ways they now demand and on the platforms they use.”
The agreement also entails extensive highlight and international media rights.
Earlier, Disney reported 1Q earnings of $0.32 per share, compared to analysts’ expectations of a loss of $0.45 per share. 1Q revenues declined 22% year-on-year to $16.2 billion but beat the Street’s estimates of $15.8 billion. (See Walt Disney stock analysis on TipRanks)
On March 2, Merrill Lynch analyst Jessica Reif Cohen maintained a Buy rating and a price target of $223 (14.3% upside potential). In a note to investors, Cohen said that she expects Disney to gain from a recovery in demand and the company “is well-positioned for a reopening in the economy.”
Turning now to the rest of the Wall Street community, Disney has a Strong Buy consensus rating based on 19 Buys and 5 Holds. The average analyst price target of $206.59 implies upside potential of about 6% to current levels. Shares have gained about 87% in the past year.
Furthermore, TipRanks data shows that financial blogger opinions are 90% Bullish, compared to a sector average of 64%.
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