Disney's optimal strategy is to merge non-experience assets (studio/streaming) with Netflix to shed low-margin operations, keeping IP/stake and concentrating on high-margin experiences.

This is roughly half the value of Disney, but they do not own the theme parks that are the engine of Disney's profits. You have Netflix, Disney, and a host of other players.

It is roughly on par with Disney Plus when you take into account Hulu and ESPN Plus subscribers as well. They are far ahead of Disney, and even Netflix.

But this also includes, as you know, Disney's traditional channels as well.

The package I subscribe to is through Disney, but it includes "HBO Max". So, I don't know, will it be taken away from me? Will I have to resubscribe to Paramount Max?

Now you have companies like ESPN, in which the league has a stake. They need that content. CBS, Paramount, you know, that conglomerate needs that content.

They have 46 million paid subscribers, which is less than a quarter of the number of subscribers to Disney's bundle or this new merged company. Who can do that? Is it Disney? Is it Netflix?

Netflix can afford that. Disney can afford that. It's simply a matter of being able to get through the regulatory process and what that might look like. We have seen Disney partner with certain companies before that it does not own, and this has yielded positive results for both parties.

It's hard to imagine that Disney, with ABC already owned, would get a chance at that.

I still believe, and this is just an opinion I hold very strongly, that the crucial step to gain an advantage here is for Disney to take its studio and streaming business, and everything that is not related to experiences, and merge it with Netflix while Disney retains a stake, maintains the intellectual property and continues to develop it, but in order for Disney to get out of the low-margin business that they are unable to make successful, and in which they have struggled despite all their attempts to change the reality.

As a parent who makes decisions about what my children watch, the disappearance of Disney would be terrible because it's the only service that will really disappear.

For Disney, it's like, let's continue to capitalize on this, but let's focus on the parts of the business that have worked over the past decade, which are, again, experiences, cruises, and things like that.

Why don't we just focus on the part of the work that generates money?