Shares of Disney are on the upswing due to a "boost from the weekend box office,” but investors could be "discounting Disney’s movie division and putting too much emphasis on ESPN,” according to CNBC's Scott Wapner. Disney's “The Jungle Book” recorded the “second-biggest April debut ever” last weekend. However, CNBC contributor Steve Grasso said ESPN is “the king of content, they’ve been the king of content." Grasso: "Everyone lost track of that when you start to talk about the skinny bundle. But we are in a bounce level. It's not going to be an easy road for them right now.” CNBC contributor Guy Adami: “It does trade at a premium valuation, so I think they are getting the benefit of the doubt from some of the other businesses.” CNBC contributor Tim Seymour: “The branded content strategy makes the most sense. The irony here is that the content is what gives them the premium multiple, not the cable business. So actually, if anything this is the reason you should be buying Disney, not selling it on ESPN. This feeds through to consumer products, it feeds through to theme parks. It's their entire model that is built off of this. This is why you own Disney. The cash cow that's been the cable and ESPN business, the ABC business, will continue and it will trade relative to every other guy in that sector” (“Fast Money,” CNBC, 4/18).
