Walt Disney And Time Warner Comparison

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People enjoy entertainment and entertainment comes in many forms; from movies, television, live shows, music, resorts, and attractions. The Walt Disney Co. and Time Warner are leaders in the entertainment industry and are publicly traded U.S. companies. I will be comparing entertainment giants Walt Disney Co. and Time Warner for the past four years. Comparison of the company’s trends and which one may be considered a better investment by looking at the ratios and percentages in the past four years. Both of these companies are major entertainment juggernauts that have customer loyalty and customer appreciation. By comparing the two companies it will give a better picture on which one maybe the industry leader and what one to follow. The analysis will also help show what the future holds for the two companies. The main focus of this paper is on Disney; Disney is a publicly traded fortune 500 company ranking 61 (Fortune, 2014). Disney has a large history and started operations on October 16, 1923 when Walt signed a contract with M. J. Winkler to produce a series of Alice Comedies (The…show more content…
Three years ago when Disney mentioned they would be acquiring Marvel and the Star Wars franchise the stocks were $64 per share and offering to pay dividends semiannually. Now Disney is selling shares at $90.96 that is a $26.94 per share growth in the three years not including dividend payout. The history of Walt Disney stock shows that the company has had 8 stock splits since 1962. This means that the shareholders now own more shares but each are valued at a lower price per share. A lower priced stock on a per-share basis can attract a wider range of buyers to invest in the company. If a person had bought 1000 shares in 1962 at $38 per share before Disney did their first split the total market capitalization rises post-split would be worth 401057.28

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