Talking Numbers

What the big deal means for Disney

What the big deal means for Disney

It's the deal everyone's talking about.

The proposed merger between the nation's two largest cable providers – Comcast (parent company of CNBC) and Time Warner Cable – into one company with one-third of the cable market may have repercussions for content companies. After all, now they have one less buyer for their products.

But, one prominent content supplier isn't so worried. Speaking to CNBC, Leslie Moonves, CEO of CBS, said, "At the end of the day, if you have the right content, you are always going to have the power."

(Watch: What Comcast, Time Warner Cable deal means for consumers)

What does it mean for one of the biggest content makers out there, Disney?

CNBC contributor Gina Sanchez, founder of Chantico Global, says that despite this deal, Disney CEO Bob Iger can probably rest easy at night. Despite Comcast wanting to get into more sports programming, Sanchez believes Disney's dominance will remain.

"I think Comcast is clearly trying to accomplish several things with this [merger]," says Sanchez. "One of the areas that they're really focusing is dominance of the sports arena. And that's a place they're going to butt head-to-head with Disney because Disney has ESPN. ESPN has 90% of the market."

"Disney's leverage is going to continue in that space," says Sanchez.

(Read: Who are the biggest losers in the Comcast-Time Warner Cable merger?)

However, CNBC contributor Andrew Busch, editor and publisher of The Busch Update, thinks investors may want to hold off just yet before buying Disney's stock based on the charts.

Busch notes that a few days ago, Disney shares jumped roughly $2.50 from $72 to $74.50 per share. He worries that the stock could go back down to those levels and fill the price gap that occurred on February 6.
"When you see these massive gaps develop," says Busch, "typically, you go back and fill them and then you reenergize the move higher. So, I'm not a real big buyer here. I don't like to buy after these big moves."

For Busch, a signal that Disney share could return to its $72 to $74.50 area would be if the stock broke below its late-December highs around $76.85.

"Once you get below $76.85," says Busch, "there's a really good chance you're going to fill that gap between $72 and $74.50."

To see the rest of the discussion on Disney with Sanchez on the fundamentals and Busch on the technicals, watch the video above.

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