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Cramer: The real poetic justice behind Disney

It wasn't very long ago that Jim Cramer remembers that investors wouldn't dare touch a company that carried Disney merchandise. They thought the business would be too episodic and not lucrative.

Instead, they bought the stock of Disney because of its consistent revenue stream from cable, specifically ESPN.

Everything changed on Wednesday.





Bob Iger, chairman and CEO of The Walt Disney Company.
Katie Kramer | CNBC
Bob Iger, chairman and CEO of The Walt Disney Company.
"Here is the irony, though: we tend to forget the releases that Electronic Arts is depending on are from Disney." -Jim Cramer

Video game company Electronic Arts skyrocketed more than 13 percent, in large because of its partnership with Disney and a successful "Star Wars" game.

The company conference call emphasized the importance of the partnership, too, and Cramer thinks the story is long term.

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"Here is the irony, though: we tend to forget the releases that Electronic Arts is depending on are from Disney, and Disney will be the chief beneficiary," the "Mad Money" host said.

It seemed to Cramer that no one seems to care what it will mean for Disney because of ESPN's growth rate and issues with advertising.

Cramer heard the same story from Hasbro, which has the Disney license for its products. Hasbro's CEO Brian Goldner told Cramer on Tuesday, "The reason we have this strong partnership is we treat Disney's brands like our own brands."

"I personally think EA's gotten ahead of itself, while Hasbro represents good value," Cramer said

The real poetic justice behind Disney, Cramer said, is that one of the reason Electronic Arts' stock has done so well is because there were rumors at first that its "Star Wars" games were off to a slow start. Investors that sold the stock short are now paying the price, and buying it back to cover their positions as the price rises.

"I know I am in the minority right now, but never forget that both Hasbro and EA are derivatives of Disney, and in the end I would always rather own the real thing," Cramer said.

The best value may be the company that owns the franchises that Electronic Arts and Hasbro have executed on so well — Disney.

Cramer thinks that once the noise surrounding the slowdown of ESPN dies down, investors will realize that Hasbro and Electronic Arts are merely a derivative of Disney.

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