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(Fox Business)   How dare Disney not predict COVID-19 years ago, and compound their failure by not continuing to pay employees that can't provide a service to them because of COVID-19 restrictions   (foxbusiness.com) divider line
    More: Dumbass, Walt Disney, The Walt Disney Company, U.S. Senator Elizabeth Warren, Walt Disney Co's move, United States, companyexecutives, Disney's decision, entertainment company  
•       •       •

780 clicks; posted to Business » on 14 Oct 2020 at 9:46 AM (10 days ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



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2020-10-14 9:19:36 AM  
Hey, subby, if Disney is so damn broke because of the pandemic that they can't pay their, ahem, "cast members," then how come they have enough money to keep paying their executives millions of dollars and keep paying out dividends? Wouldn't that make them even more broke than they already are?
 
2020-10-14 9:23:55 AM  
Subby, are you smelling toast?
 
2020-10-14 9:24:57 AM  

Serious Black: Hey, subby, if Disney is so damn broke because of the pandemic that they can't pay their, ahem, "cast members," then how come they have enough money to keep paying their executives millions of dollars and keep paying out dividends? Wouldn't that make them even more broke than they already are?


Yup.

There are many smaller companies who don't have the reserves to keep paying employees for months while being shutdown.

Then there are larger companies who have enough cash reserves to pay everyone in country a UBI and not break a sweat.  (Okay they would sweat because they're not increasing those cash reserves but screw them.)

Disney, Apple, Google, Amazon, Microsoft, etc..... have no excuses not to pay anyone.
 
2020-10-14 9:31:42 AM  
Republicans:

People exist to serve the economy.

Democrats:

The economy exists to serve the people.
 
2020-10-14 9:33:52 AM  

BizarreMan: Disney, Apple, Google, Amazon, Microsoft, etc..... have no excuses not to pay anyone.


Apple, Google, Amazon and Microsoft sure. They're tech companies. Plenty of them can work from home.

Disney, not so much. Stores closed, parks closed, film productions shut down, it's not surprising they're getting buttfarked by this.
 
2020-10-14 9:41:27 AM  

forteblast: BizarreMan: Disney, Apple, Google, Amazon, Microsoft, etc..... have no excuses not to pay anyone.

Apple, Google, Amazon and Microsoft sure. They're tech companies. Plenty of them can work from home.

Disney, not so much. Stores closed, parks closed, film productions shut down, it's not surprising they're getting buttfarked by this.


Mid August Disney had $23b cash reserved.
 
2020-10-14 9:48:54 AM  
pbs.twimg.comView Full Size
 
2020-10-14 9:49:59 AM  
Keep polishing that corporate knob, subby. You'll make it to the big time someday!
 
2020-10-14 9:50:44 AM  

Serious Black: Hey, subby, if Disney is so damn broke because of the pandemic that they can't pay their, ahem, "cast members," then how come they have enough money to keep paying their executives millions of dollars and keep paying out dividends? Wouldn't that make them even more broke than they already are?


They actually suspended the dividend.  They paid in January as expected, but their July payment was cut and there's no dividend planned at this time.
 
2020-10-14 9:51:20 AM  
Disney, who have a huge business that relies on astounding numbers of people going to the same place and being in close proximity all day really should have had a contingency plan for what if that was no longer possible.
 
2020-10-14 9:53:27 AM  
Activist investor Daniel Loeb of hedge fund Third Point said the company should permanently end its dividend, after Disney suspended it in May, and invest in streaming programming instead.

This is unrelated to Warren.  This is an activist trying to get Disney to act like a growth company.  It's a fine point to make, but it has nothing to do with what Warren is saying.  He's asking the company to spend its money on entertainment talent, and not theme park employees.
 
2020-10-14 9:55:05 AM  

Gubbo: Disney, who have a huge business that relies on astounding numbers of people going to the same place and being in close proximity all day really should have had a contingency plan for what if that was no longer possible.


Technically they did.  The plan was to fire everybody and hire them back as needed.  It's not a pleasant plan, but it was a plan.
 
2020-10-14 9:56:20 AM  
Subby, thank you for your service defending the name of the astronomically wealthy ultra mega media conglomo-corp. I hope it sleeps with you.
 
2020-10-14 9:57:08 AM  
Brick and mortar facilities that are closed may be a harder sell on the shareholders, but the big tech companies can actually afford to keep paying:

https://www.google.com/amp/s/www.cnbc.​com/amp/2020/03/06/coronavirus-google-​facebook-twitter-contractors-to-get-re​gular-pay.html
 
2020-10-14 10:00:03 AM  
Oh ... oh wait, this is one of those things ... where the site deliberately greenlights the version of the headline with the most fishhooks sticking out of it to see what kind of buzz it can generate!  Yeah, I know this one!

Grow the hell up.  Disney's flush with money but ditched their employees to preserve a bottom line for their execs and shareholders.
 
2020-10-14 10:00:54 AM  
Know how I can tell subby didn't read the article past the headline?
 
2020-10-14 10:01:48 AM  

Gubbo: Disney, who have a huge business that relies on astounding numbers of people going to the same place and being in close proximity all day really should have had a contingency plan for what if that was no longer possible.


I love that there have been two recession events in my lifetime, yet the thought of "hey we should prepare for a day when we don't have a perpetually increasing stream of cash" is outright blasphemy to big companies, and they all immediately default to layoffs.
 
2020-10-14 10:05:56 AM  

Rapmaster2000: Serious Black: Hey, subby, if Disney is so damn broke because of the pandemic that they can't pay their, ahem, "cast members," then how come they have enough money to keep paying their executives millions of dollars and keep paying out dividends? Wouldn't that make them even more broke than they already are?

They actually suspended the dividend.  They paid in January as expected, but their July payment was cut and there's no dividend planned at this time.


They TEMPORARILY suspended the dividend. There's still plans to pay the next one in January.
 
2020-10-14 10:07:43 AM  
Is this one of those headlines where subby thinks everyone in the thread is going to agree with him, only to be completely confounded that no one does?
 
2020-10-14 10:14:36 AM  

DecemberNitro: Gubbo: Disney, who have a huge business that relies on astounding numbers of people going to the same place and being in close proximity all day really should have had a contingency plan for what if that was no longer possible.

I love that there have been two recession events in my lifetime, yet the thought of "hey we should prepare for a day when we don't have a perpetually increasing stream of cash" is outright blasphemy to big companies, and they all immediately default to layoffs.


Anyone who thinks such thoughts is a company is not a team player and is rooted out of the organization well before they ever get a chance to get to a position of authority.
 
2020-10-14 10:14:53 AM  

DecemberNitro: I love that there have been two recession events in my lifetime, yet the thought of "hey we should prepare for a day when we don't have a perpetually increasing stream of cash" is outright blasphemy to big companies, and they all immediately default to layoffs.


Just remember...

A citizen or family not having a 6-month plan for contingencies, tight on savings, losing job income, etc - "Yea, it sucks, but it's their dumb fault for not making better decisions and being more prepared"

A large, multi-billion-dollar company doing the same for even a couple of months - "Oh, how sad for them, no one could have possibly predicted such a thing ever happening. Hopefully after the layoffs and cost cuttings, their CEO can still afford that European vacation tour, else we might need to give them a bailout."
 
2020-10-14 10:15:13 AM  
I have a friend down in Florida who recently visited disney world.  He said it was nice.  With the restrictions on people the lines were easily manageable.

/its a stupid business model
//they make more money by packing in more people and making the experience thoroughly miserable
 
2020-10-14 10:15:23 AM  

Serious Black: Rapmaster2000: Serious Black: Hey, subby, if Disney is so damn broke because of the pandemic that they can't pay their, ahem, "cast members," then how come they have enough money to keep paying their executives millions of dollars and keep paying out dividends? Wouldn't that make them even more broke than they already are?

They actually suspended the dividend.  They paid in January as expected, but their July payment was cut and there's no dividend planned at this time.

They TEMPORARILY suspended the dividend. There's still plans to pay the next one in January.


Yes.  I said it was suspended.

I also seriously doubt they'll pay it.  Disneyland is still closed.  Disney World is capped at 25%.  The cruise line is shut down.  Most of the hotels are closed.  There is nothing at the box office.  It's just Disney+ and the back catalog right now.  I wouldn't expect a dividend until 2022.  They're slow rolling it.
 
2020-10-14 10:16:21 AM  

Serious Black: Rapmaster2000: Serious Black: Hey, subby, if Disney is so damn broke because of the pandemic that they can't pay their, ahem, "cast members," then how come they have enough money to keep paying their executives millions of dollars and keep paying out dividends? Wouldn't that make them even more broke than they already are?

They actually suspended the dividend.  They paid in January as expected, but their July payment was cut and there's no dividend planned at this time.

They TEMPORARILY suspended the dividend. There's still plans to pay the next one in January.


My unpopular, completely accurate, and yet I fundamentally disagree with it take.

Dividends don't matter. You should revinvest dividends. If you need the income stream you can just sell some shares to recreate it

/it assumed frictionless sells with no costs attached
 
2020-10-14 10:19:43 AM  
Subby: those poor millionaires. Why won't we give them more?
 
2020-10-14 10:21:47 AM  

Gubbo: Dividends don't matter. You should revinvest dividends. If you need the income stream you can just sell some shares to recreate it


I think the problem for a lot of companies is that there aren't really any growth areas for them to reinvest.  Utilities and banks have this problem.
 
2020-10-14 10:28:50 AM  

Rapmaster2000: Gubbo: Dividends don't matter. You should revinvest dividends. If you need the income stream you can just sell some shares to recreate it

I think the problem for a lot of companies is that there aren't really any growth areas for them to reinvest.  Utilities and banks have this problem.


Do what everyone else is doing and invest real estate in Florida.  It's foolproof.   Especially condos in Miami.
 
2020-10-14 10:29:54 AM  

Serious Black: Hey, subby, if Disney is so damn broke because of the pandemic that they can't pay their, ahem, "cast members," then how come they have enough money to keep paying their executives millions of dollars and keep paying out dividends? Wouldn't that make them even more broke than they already are?


Yes.  Same thing with companies like Boeing that spend billions on stock buybacks and pay out large executive bonuses rather than build up a rainy day fund.

With that said they do probably have enough to get by but are asking for a handout anyways because that is the American way (privatize gains, socialize losses).  Also, being that this is a pandemic they should all be eligible for PPP loans but accepting such loan should be a cap on executive pay (I know, stop laughing, they will never agree to that).
 
2020-10-14 10:37:00 AM  

BizarreMan: forteblast: BizarreMan: Disney, Apple, Google, Amazon, Microsoft, etc..... have no excuses not to pay anyone.

Apple, Google, Amazon and Microsoft sure. They're tech companies. Plenty of them can work from home.

Disney, not so much. Stores closed, parks closed, film productions shut down, it's not surprising they're getting buttfarked by this.

Mid August Disney had $23b cash reserved.


Exactly and this is why Wall Street can go fark itself:  If Disney goes and uses that cash reserve in order to pay their employees, however infinitesimal a dent it may be, Wall Street would punish them for it.

So yeah, Disney should use their cash reserve to pay their employee and Wall Street can fark right off because they're a bunch of pigs.
 
2020-10-14 10:40:10 AM  

FLMountainMan: Rapmaster2000: Gubbo: Dividends don't matter. You should revinvest dividends. If you need the income stream you can just sell some shares to recreate it

I think the problem for a lot of companies is that there aren't really any growth areas for them to reinvest.  Utilities and banks have this problem.

Do what everyone else is doing and invest real estate in Florida.  It's foolproof.   Especially condos in Miami.


I feel like we're back here again:
i.pinimg.comView Full Size

2008 was just 12 years ago, and people are still acting like Florida condos are a foolproof investment.
 
2020-10-14 10:44:15 AM  

Rapmaster2000: Gubbo: Dividends don't matter. You should revinvest dividends. If you need the income stream you can just sell some shares to recreate it

I think the problem for a lot of companies is that there aren't really any growth areas for them to reinvest.  Utilities and banks have this problem.


I was going from a shareholder perspective.

From a company perspective, if you can't find growth areas, your best bets are to do some share buybacks and/or look into taking yourself private.

When Dell went private the most recent time it was because they thought that the steady income streams would be great, but Dell is never going to have that explosives sales growth like Apple and the stock price would unfairly suffer (because the market doesn't reward steady and consistent performance).
 
2020-10-14 10:47:48 AM  

Gubbo: Rapmaster2000: Gubbo: Dividends don't matter. You should revinvest dividends. If you need the income stream you can just sell some shares to recreate it

I think the problem for a lot of companies is that there aren't really any growth areas for them to reinvest.  Utilities and banks have this problem.

I was going from a shareholder perspective.

From a company perspective, if you can't find growth areas, your best bets are to do some share buybacks and/or look into taking yourself private.

When Dell went private the most recent time it was because they thought that the steady income streams would be great, but Dell is never going to have that explosives sales growth like Apple and the stock price would unfairly suffer (because the market doesn't reward steady and consistent performance).


I feel like for the grandmas out there, steady dividend payment is what they're looking for.
 
2020-10-14 10:51:59 AM  

Rapmaster2000: Gubbo: Rapmaster2000: Gubbo: Dividends don't matter. You should revinvest dividends. If you need the income stream you can just sell some shares to recreate it

I think the problem for a lot of companies is that there aren't really any growth areas for them to reinvest.  Utilities and banks have this problem.

I was going from a shareholder perspective.

From a company perspective, if you can't find growth areas, your best bets are to do some share buybacks and/or look into taking yourself private.

When Dell went private the most recent time it was because they thought that the steady income streams would be great, but Dell is never going to have that explosives sales growth like Apple and the stock price would unfairly suffer (because the market doesn't reward steady and consistent performance).

I feel like for the grandmas out there, steady dividend payment is what they're looking for.


And I agree with them. The theory, which is 100% correct and I 100% disagree with, is that dividends don't change the share price and if you want to get $x of dividend, you should just sell some shares yourself.

/it overlooks tax impact as well of course
//and convenience
///and the fact that dividends do change the value of a company just through the PR of changing from your dividend policy
 
2020-10-14 10:56:08 AM  

Nadie_AZ: Subby: those poor millionaires. Why won't we give them more?


Summed up in this song (I swear Maynard is a time-traveler), "The Doomed".

Blessed are the fornicates
May we bend down to be their whores

Blessed are the rich,
May we labor, deliver them more


Blessed are the envious
Bless the slothful, the wrathful, the vain

Blessed are the gluttonous
May they feast us to famine and war

But what of the pious, the pure of heart, the peaceful?
What of the meek, the mourning, the merciful?
What of the righteous, the dutiful, the decent?

All doomed. All doomed

And the word was death, and the word was without light
The new Beatitudes: Good luck, you're on your own


A Perfect Circle- The Doomed (Lyrics)
Youtube S_y6n5pMA7U
 
2020-10-14 11:00:40 AM  
So according to subby, companies shouldn't be expected to plan for... Well, anything, at all, really.
 
2020-10-14 11:32:54 AM  

Gubbo: Disney, who have a huge business that relies on astounding numbers of people going to the same place and being in close proximity all day really should have had a contingency plan for what if that was no longer possible.


This is one of those glaring examples of how people lionize business to a ridiculous degree. "Business is more efficient that government! Business plans better!"

Even though the risk of a pandemic has been known for literally 100 years, and the risk of a global one has been talked up in the last 5-10, the business had no alternative strategy in mind. And this is one of the best-run companies in the world.

Businesses cannot solve every problem. Sadly, neither can a dismantled government, so stop voting R.
 
2020-10-14 11:36:59 AM  

Serious Black: Hey, subby, if Disney is so damn broke because of the pandemic that they can't pay their, ahem, "cast members," then how come they have enough money to keep paying their executives millions of dollars and keep paying out dividends? Wouldn't that make them even more broke than they already are?


This doesn't really matter.

If there is no work for an employee, I'm not sure why you, Warren, and everybody else expects the company to continue to pay them to do nothing.  It is currently against California state regulations for these employees to do their jobs.  Of course they should be laid off.  Duh.
 
2020-10-14 11:38:38 AM  
Which board member submitted this?
 
2020-10-14 11:45:28 AM  

NateAsbestos: So according to subby, companies shouldn't be expected to plan for... Well, anything, at all, really.


Which does seem to match modern corporate thinking.

The only thing you need to plan for is the quarter end numbers.
 
2020-10-14 11:54:09 AM  

BizarreMan: forteblast: BizarreMan: Disney, Apple, Google, Amazon, Microsoft, etc..... have no excuses not to pay anyone.

Apple, Google, Amazon and Microsoft sure. They're tech companies. Plenty of them can work from home.

Disney, not so much. Stores closed, parks closed, film productions shut down, it's not surprising they're getting buttfarked by this.

Mid August Disney had $23b cash reserved.


Disney's operating expenses for 2019 were $58 billion
 
2020-10-14 12:06:55 PM  
How is paying workers not working in the shareholder's best interest?
 
2020-10-14 12:11:07 PM  

BizarreMan: Serious Black: Hey, subby, if Disney is so damn broke because of the pandemic that they can't pay their, ahem, "cast members," then how come they have enough money to keep paying their executives millions of dollars and keep paying out dividends? Wouldn't that make them even more broke than they already are?
Yup.
There are many smaller companies who don't have the reserves to keep paying employees for months while being shutdown.
Then there are larger companies who have enough cash reserves to pay everyone in country a UBI and not break a sweat.  (Okay they would sweat because they're not increasing those cash reserves but screw them.)
Disney, Apple, Google, Amazon, Microsoft, etc..... have no excuses not to pay anyone.


Isn't there a woman named "Disney" who likes to talk about things like that?

Anyway, this is what everybody wanted--non-stop entertainment, at low low prices. And now look at your pretty country, paved over and awash with wage slaves to serve you fantasy devotees. All day long, all year, 24 hours a day--let you be entertained!

Unfortunately, there was a glitch in the matrix and the 24-hour a day entertainment broke down. Oh the world. How will we function without our constant economy-lubricating diversions? Who will serve us food? Who will wipe our brains of anything resembling responsibility for what we have done to our life support systems? What will we have to do now--live in the real world?

Anything but that. Disney Cruises are offering record deals to the Bahamas. Why aren't you there? Why aren't you offering your SUPPORT?
 
2020-10-14 12:11:14 PM  

Gubbo: Serious Black: Rapmaster2000: Serious Black: Hey, subby, if Disney is so damn broke because of the pandemic that they can't pay their, ahem, "cast members," then how come they have enough money to keep paying their executives millions of dollars and keep paying out dividends? Wouldn't that make them even more broke than they already are?

They actually suspended the dividend.  They paid in January as expected, but their July payment was cut and there's no dividend planned at this time.

They TEMPORARILY suspended the dividend. There's still plans to pay the next one in January.

My unpopular, completely accurate, and yet I fundamentally disagree with it take.

Dividends don't matter. You should revinvest dividends. If you need the income stream you can just sell some shares to recreate it

/it assumed frictionless sells with no costs attached


If you're not retired, sure.  But a lot of people (myself included when I retire, because I guarantee a republican will finally kill off social security by the time I reach that age) rely on dividends as retirement income.

Therefore, when a company kills its dividend (even if temporarily) lots of people sell.  Which tanks the price.

If enough people sell and the price therefore tanks enough to hurt more than you would if you'd just pay the dividend, you should keep paying the dividend.  For being a growth stock, Disney has a pretty decent dividend.  Which makes it a very attractive stock, when it's paying the dividend.

/(Most dividend stocks have a very consistent price and therefore aren't growth stocks... so you only make money because of the dividend.  Those types of stocks are much more impacted by suspending or cutting their dividend.)
 
2020-10-14 12:17:41 PM  

Petit_Merdeux: Republicans:

People exist to serve the economy.

Democrats:

The economy exists to serve the people.


Well, must be election time. This wind bag lefty is back. Where's Bernie? They could tag team, jumping on every business for not just letting people stay home and collect full pay and benefits.
 
2020-10-14 12:21:28 PM  

Serious Black: Hey, subby, if Disney is so damn broke because of the pandemic that they can't pay their, ahem, "cast members," then how come they have enough money to keep paying their executives millions of dollars and keep paying out dividends? Wouldn't that make them even more broke than they already are?


The top executives aren't getting paid, and the rest took a 50% pay cut. Dividends are suspended. If you're going to be outraged, be outraged against things that are happening.
/best friend works for the mouse
//it's a banally evil mega corporation, but the layoffs were pretty much inevitable
///slashies
 
2020-10-14 12:26:12 PM  

jake3988: Gubbo: Serious Black: Rapmaster2000: Serious Black: Hey, subby, if Disney is so damn broke because of the pandemic that they can't pay their, ahem, "cast members," then how come they have enough money to keep paying their executives millions of dollars and keep paying out dividends? Wouldn't that make them even more broke than they already are?

They actually suspended the dividend.  They paid in January as expected, but their July payment was cut and there's no dividend planned at this time.

They TEMPORARILY suspended the dividend. There's still plans to pay the next one in January.

My unpopular, completely accurate, and yet I fundamentally disagree with it take.

Dividends don't matter. You should revinvest dividends. If you need the income stream you can just sell some shares to recreate it

/it assumed frictionless sells with no costs attached

If you're not retired, sure.  But a lot of people (myself included when I retire, because I guarantee a republican will finally kill off social security by the time I reach that age) rely on dividends as retirement income.

Therefore, when a company kills its dividend (even if temporarily) lots of people sell.  Which tanks the price.

If enough people sell and the price therefore tanks enough to hurt more than you would if you'd just pay the dividend, you should keep paying the dividend.  For being a growth stock, Disney has a pretty decent dividend.  Which makes it a very attractive stock, when it's paying the dividend.

/(Most dividend stocks have a very consistent price and therefore aren't growth stocks... so you only make money because of the dividend.  Those types of stocks are much more impacted by suspending or cutting their dividend.)


The payment of a dividend technically drops the value of a company (and thus the share price) by the amount of the dividend. If anything, not paying the dividend would lead to higher share prices as only the people who wanted the dividend would sell, and even then it would be more smoothed out across a longer time frame.

In the real world, you're correct.

/had more than one lecturer who really believed in all that efficient market nonsense
 
2020-10-14 2:09:34 PM  

Geotpf: Serious Black: Hey, subby, if Disney is so damn broke because of the pandemic that they can't pay their, ahem, "cast members," then how come they have enough money to keep paying their executives millions of dollars and keep paying out dividends? Wouldn't that make them even more broke than they already are?

This doesn't really matter.

If there is no work for an employee, I'm not sure why you, Warren, and everybody else expects the company to continue to pay them to do nothing.  It is currently against California state regulations for these employees to do their jobs.  Of course they should be laid off.  Duh.


Apparently it's impossible for us to implement a Kurzarbeit-like program in America which would have allowed companies to keep employees employed indefinitely through the government paying companies' paychecks. It worked for Germany; their unemployment rate barely leapt between March and May of this year.
 
2020-10-14 2:38:47 PM  

Rapmaster2000: Serious Black: Rapmaster2000: Serious Black: Hey, subby, if Disney is so damn broke because of the pandemic that they can't pay their, ahem, "cast members," then how come they have enough money to keep paying their executives millions of dollars and keep paying out dividends? Wouldn't that make them even more broke than they already are?

They actually suspended the dividend.  They paid in January as expected, but their July payment was cut and there's no dividend planned at this time.

They TEMPORARILY suspended the dividend. There's still plans to pay the next one in January.

Yes.  I said it was suspended.

I also seriously doubt they'll pay it.  Disneyland is still closed.  Disney World is capped at 25%.  The cruise line is shut down.  Most of the hotels are closed.  There is nothing at the box office.  It's just Disney+ and the back catalog right now.  I wouldn't expect a dividend until 2022.  They're slow rolling it.


Not only is Disney World capped at 25% they aren't even hitting that most days.  They have also reduced park hours significantly over last year.
They just released Soul straight to Disney+ (without a premium like Mulan).  That film cost $150 million+ to make.
Not that Disney is blameless.  The announced layoffs were implied to be because of California not having a plan for reopening but the majority of the layoffs were for Disney World.  Restoring executive pay was a tone-deaf move.
 
2020-10-14 2:47:46 PM  

Serious Black: Geotpf: Serious Black: Hey, subby, if Disney is so damn broke because of the pandemic that they can't pay their, ahem, "cast members," then how come they have enough money to keep paying their executives millions of dollars and keep paying out dividends? Wouldn't that make them even more broke than they already are?

This doesn't really matter.

If there is no work for an employee, I'm not sure why you, Warren, and everybody else expects the company to continue to pay them to do nothing.  It is currently against California state regulations for these employees to do their jobs.  Of course they should be laid off.  Duh.

Apparently it's impossible for us to implement a Kurzarbeit-like program in America which would have allowed companies to keep employees employed indefinitely through the government paying companies' paychecks. It worked for Germany; their unemployment rate barely leapt between March and May of this year.


Well, the PPP was almost exactly this (for small businesses only, so Disney wouldn't qualify).  There was a short term plan for the airlines too (Disney is not an airline, and it expired like the PPP did).  Many of the new proposals for another stimulus included more of this.  But oh well.
 
2020-10-14 3:05:15 PM  
The situation with Disney isn't nearly as simple as both subby and everyone in the thread seems to think.  Disney is heavily leveraged right now due to their acquisition of 20th Century Fox.  All of their biggest revenue streams relied heavily on large numbers of people being allowed to gather in venues.  That is obviously off the table for the foreseeable future.

So, they are floating on cash reserves, loans, and investor capital, right now.  The longer you freeze paying out dividends to your investors the more you kill investor cash flow.  They just took a hit on their credit rating, which is going to impact the cost at which they can secure additional loans.  They probably should have continued to reduce executive pay to free up resources, but who knows how much leverage they have with those contracts.  I mean Disney's legal team is like a real world Death Star, so they probably could do whatever they want, but that isn't free either.

So yeah, Disney has a q4 investor call next month that is already going to be a bloodbath and is stuck in a bad situation until they can restore their normal revenue streams.  The layoffs come off as a rather cold-blooded move, but Disney has to restructure for the financial realities of the next fiscal year and are taking the path of least resistance.  Its not very noble, but survival rarely is.
 
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