Part 4/11:
One of the key themes is how COVID-19 has devastated Disney's core revenue channels. The parks, cruise lines, and theatrical release windows suffered massive downturns, forcing the company into debt to sustain operations. Streaming services like Disney+ offered some relief but did not compensate for the loss of traditional income, leading to financial strain and the necessity of cost-cutting measures.
Neon suggests that Disney is borrowing extensively, possibly with the aim of having liquidity in case Florida or other regions curb operations once again due to rising COVID cases or media pressure. The lack of clarity around case numbers and testing accuracy adds to the uncertainty, with some reports indicating testing misreporting that could skew the perceived severity of the situation.