Disney Falls Most Since 2008 on Consumer Spending Concerns
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Walt Disney Co., the world’s largest theme-park company, fell the most since 2008 on concern that slowing consumer spending and rising costs at the ESPN sports network may crimp profit growth.
Among the largest media companies, including Time Warner Inc., News Corp. and Viacom Inc., Disney is the most exposed to consumer spending through its theme parks, as well as broadcast and cable-TV units, said Paul Sweeney, an analyst at Bloomberg Industries. Increasing costs to broadcast sports on ESPN and a declining DVD market may also hurt earnings, according to Matthew Harrigan, an analyst at Wunderlich Securities.