Do acquisitions of media property add value to The Walt Disney Company

Abstract

In this paper, I examine the major corporate activities of Disney and its competitors over the past twenty years. I analyze these activities to determine which activities add the most value to media companies. Additionally, I examine the major event releases of Disney alone. I find that acquisitions add value to Disney and its competitors. I also find that Disney’s stock outperforms that of its competitors. However, I did not find a strong relationship between media releases and investor response. In summary, the investor response is strongest surrounding initial announcements of corporate control activities.