Part 9/10:
The realization that some assets are worth significantly less than their book value could prompt Disney to sell or write down more properties, further impacting investor confidence. Historically, overvaluation at the time of acquisition has led to eventual write-downs, which can signal a lack of disciplined valuation and strategic foresight.
The Broader Market Context
Disney’s financial challenges mirror a broader industry trend where over-leveraged assets and inflated brand valuations lead to financial strain once market conditions deteriorate. The comparison to individual IRAs and tax penalties illustrates a similar dynamic—overly aggressive growth assumptions can backfire when rules or realities change.