Diamonds and Dogs

4/12/19

A good day for Walt Disney (DIS). The media giant is jumping 12% after unveiling direct-to-consumer (DTC) strategy with Disney+ at its Investor Day last night. Disney+ set to launch in U.S.market on November 12 at $6.99/month, or $69.99/year, undercutting Netflix quite substantially and was below some estimates but in-line with others as the company focuses on sub growth. The service will offer new originals and unparalleled library offerings from Disney, Pixar, Star Wars, Marvel Studios, and National Geographic, as well as "The Simpsons" and 20th Century Fox Titles "The Sound of Music," "The Princess Bride," and "Malcolm in the Middle".  Disney expects 60-90 million Disney+ subscribers by 2024. That's a ways off.

Chevron (CVX) is down 5%, one of the few Dow components trading lower, following a deal to buy Anadarko Petroleum for $33 billion. This deal will expand Chevron's strong position in the Permian Basin, prompting speculation about whether rival Exxon Mobil may follow with a big deal of its own. The Permian is the hottest region for oil production in the country, and Anadarko has long been viewed as a prime takeover candidate among U.S. energy companies. Chevron said the deal should deliver $2 billion in annual cost and capital synergies and boost cash flow and earnings one year after the closing, expected in the second half of this year. Chevron plans to boost its annual share repurchases by 25% to $5 billion after the closing of the deal.