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The Walt Disney Company (DIS) Is a Buy on the Sell-Off

Electronic Arts will soon be rolling out the first video game in the Star Wars line,Star Wars: Battlefront. The Walt Disney Company (NYSE:DIS) did a great job of closing down the gaming unit, LucasArts, and pursuing the alternative path of licensing through Electronic Arts. Disney’s decision enables the company to take a higher margin route, and pushes the risk of selling the games on Electronic Arts. But almost certainly Electronic Arts will roll out a fantastic video game, due to its long proven track record.

And Disney is gearing up to launch the Star Wars 7 flick in 2015 through Lucasfilm. The Star Wars intellectual property alone can translate into billions of dollars of incremental revenue in only a few years, which will pay for the acquisition price of $4.05 billion by itself, which Disney laid out in October 2012.

Disney has been a household entertainment icon for generations across not only the U.S. but across the globe. The company’s portfolio of media assets will translate into billions of dollars of incremental revenues. Disney has a solid footing to capitalize on global economic growth and incremental consumer spending. ESPN remains a clear leader in sports entertainment, and will be maintaining its user eyeballs.

The company’s position in consumer mind-share can be extracted from the company’s social media presence. Disney has roughly 44.6 million likes on Facebook, according to PageData, which is a fantastic feat for any brand. The company’s high quality content and entertainment portfolio will drive Disney’s bottom line growth for years. The recent sell-off represents a great entry point for buying into Disney stock.

The article Disney Is a Buy on the Sell-Off originally appeared on Fool.com and is written by Ishfaque Faruk.

Ishfaque Faruk has no position in any stocks mentioned. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Walt Disney. Ishfaque is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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