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Summary Business Valuation Report of
Walt Disney
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Company Background – Walt Disney
A. Purpose of Valuation
The valuation of a business refers to the process which helps in ascertaining the current worth of
a business entity. Such a process involves a series of processes and procedures that helps to make
an estimation of the economic value of a company. The determination of the business value can
be useful for diverse reasons such as knowing the sale value, taxation purposes, and the
establishment of partner-based ownership. Koseoglu has identified business valuation as an
important strategic subject that incidences the ongoing activities of an entity (Köseoğlu &
Almeany, 2020). In the specific context, a comprehensive business valuation of the Walt Disney
business entity has been carried out.
The primary objective of the business valuation is to gather relevant information pertaining to the
economic value of the organization. The figures and information that have been collected can be
utilized for the purpose of making estimations and projections about the firm’s financial
performance, including profitability. Furthermore, it will be possible to determine the entity’s
overall financial position in the evolving business landscape. The business valuation can be
considered to be an extremely informative and valuable resource for potential investors of the
company.
B. Date of Valuation
The date on which the business valuation of the Walt Disney Company has been conducted is
June 30, 2022.
C. Percent ownership being valued
In Walt Disney organization, more than half of the company is held by institutions. This gives
them significant power to influence how the business entity operates and functions in the market
setting (Yahoo, 2022). The institutional investors currently hold around 64. 98 % of outstanding
shares, which gives them ample power within the organization. One of the largest institutional
investors is the Vanguard Group Inc which is a major shareholder of the company since it has 7.6
% of outstanding shares in the firm. Insider ownership in the company is negligible since it is
less than 1 % (Yahoo, 2022). The general public has around 34.95 % of the company’s
ownership. The breakdown of the ownership structure of Walt Disney has been presented below:
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Source: (Yahoo, 2022)
D. Company history and business structure
The Walt Disney Company came into existence in the year 1923. It is a U.S.-based multinational
mass media firm as well as an entertainment conglomerate. The business entity is considered to
be one of the chief organizations that have brought about revolutionary changes in the American
animation landscape. With the passage of time, the company has grown from strength to
strength, and it has succeeded in adapting to the evolving business ecosystem to transform its
offerings. Walt Disney operates along with its subsidiaries in two major segments, including
Disney Media and Entertainment Distribution (DMED) as well as Disney Parks, Experiences and
Products (DPEP) (Fiscal Year 2021 Annual Financial Report - the walt disney company, 2022).
Since the very inception of the company, it has succeeded in moving forward by effectively
tackling numerous challenges and obstacles. For the initial four years, the company continued to
focus on its ‘Alice Comedies.’ However, in the year 1927, it made the decision to start working
on an all-cartoon series. Since then, there has been no looking back for the business firm. A
major turning point for the business was the creation of the cartoon character called ‘Mickey
Mouse.’ It emerged as a cartoon star that became synonymous with the very identity of the
company. While the cartoon was gaining high popularity in the market, the company soon
realized that the merchandising of the popular animated characters could serve as a vital source
of revenue for the business entity. Thus, began the emergence of Disney merchandising which
added to the financial strength and viability of the company.
Gradually, the business establishment ventured into the creation of full-length movies. It took
almost seven years for the company to make the famous animated film called ‘Snow White and
Seven Dwarfs.’ The company tasted success because very soon, the film became the highest-
grossing movie of all times at the time. With every passing year, the business focused on
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expanding its forte and strengthening its brand image. For instance, in the 1940s, its two popular
features named, Fantasia and Pinocchio, were released. They were considered to be exceptional
technical masterpieces during those times. The 1950s was also considered to be a successful
phase for the company since it opened its new park, which was considered to be the very first
theme park. It further boosted the popularity of the company in the international setting
(Saraswati et al., 2021).
The company has been working in four distinctive areas, including the Walt Disney Studios,
Media Networks, Parks and Resorts as well as Interactive Media. Such a diverse business
strategy enables the Walt Disney Company to effectively maintain the synergy and achieve its
business goals by focusing on the related business activities and processes. The organizational
structure of the company facilitates proper integration and engagement between diverse
departments and business units. Such a structure has helped the company to gain a competitive
advantage in the market setting.
E. Description of facilities, major assets, or equipment key to running the business
The functioning of the Walt Disney company is influenced by a diverse range of elements such
as facilities, major assets or equipment.
• The company owns several popular networks such as ABC, The Disney Channel, Disney
Plus, The National Geographic, etc. These networks act as useful platforms that enable
the business to expand its customer base at the global level.
• The business has a number of theme parks in diverse locations, which helps the business
to diversify its entertainment offering. Some of the most popular theme parks of the
company are Hong Kong Disneyland, Disneyland Paris, Tokyo DisneySea, Shanghai
Disneyland Park, and many more (Fiscal Year 2021 Annual Financial Report - the walt
disney company, 2022).
• The Walt Disney Company Studio is a vital division of the company that mainly involves
a wide range of renounced film production companies. Some of the most popular
companies include W Disney Pictures, Pixar, Marvel Studios, and many more. The studio
produces high-grossing movies, which adds to the revenue of the company.
The company has succeeded in expanding its capabilities while operating in the market, which
has helped it to continuously adapt to the evolving business landscape. For instance, in the
digitalized era, the company has introduced a number of online streaming services. Such a
strategic move has not only expanded its assets but it has helped the business to diversify its
offerings.
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F. Overview of the management structure
The management structure of the Walt Disney Company can be considered to be a cooperation
multidivisional structure. There exist several business units or segments which help to bring
better clarity within the organizational setting. Such a structure facilitates the company to
leverage its core competencies in diverse areas and function in a coordinated manner to achieve
the organizational goals and objectives. The executive Leadership team plays a key role in
offering guidance and strategic direction to the entire company. The Board of Directors bring in
immense knowledge and experience and accelerate the long-term value within the entity. The
clear segregation between the managerial level, the secondary level as well as the apex level
helps the company to follow a methodical and coordinated approach while conducting the
business operations. The managerial hierarchy that is adopted by Walt Disney is ideal since it is
a large company that operates globally.
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SOURCES
Fiscal Year 2021 Annual Financial Report - the walt disney company. (2022). Retrieved June 30,
2022, from https://thewaltdisneycompany.com/app/uploads/2022/01/2021-Annual-
Report.pdf
Köseoğlu, S. D., & Almeany, S. S. A. (2020). Introduction to Business Valuation. In Valuation
Challenges and Solutions in Contemporary Businesses (pp. 1-23). IGI Global.
Saraswati, A., Widhiyanti, K., & Fatmawati, N. G. (2021). The character design of the animated
film Raya and The Last Dragon in building Southeast Asian identity politics. Satwika:
Studies of Cultural Sciences and Social Change, 5(2), 254-267.
Yahoo! (2022). Yahoo! Finance. Retrieved June 30, 2022, from
https://finance.yahoo.com/news/could-walt-disney-company-nyse-162826512.html
