Just look at the list of Disney subsidiaries[1], then look at how bad the average Netflix original movie is and then tell me if the market caps makes any sense at all.
[1]https://en.wikipedia.org/wiki/List_of_assets_owned_by_Disney
I'd recommend shorting Netflix if you believe it is significantly overvalued.
What is the chance that Disney can execute implementing its own Netflix? What is Disney's batting average on projects like that?
"The company's major clients include the NHL, HBO (for its HBO Now service), the PGA Tour, Riot Games, WatchESPN, PlayStation Vue, WWE Network and TheBlaze." [2]
"Marvel, Star Wars films to ditch Netflix for Disney service" [3]
I'd say they have both the content, technical expertise, and tenacity and perseverance to pull it off.
[1] https://www.thewaltdisneycompany.com/walt-disney-company-acq... [2] https://en.wikipedia.org/wiki/BAMTech [3] https://www.cnet.com/news/marvel-and-star-wars-films-will-di...
No one has ever accused Disney of not being able to leverage its brands. They also have a good track record when it comes to acquiring other companies like Pixar, LucasFilm, and Marvel.
If the deal with Fox goes through, they will have even more content to leverage.
Disney effectively owns Hulu, which was already the #2 or #3 competitor to Netflix in the US for many years.
Disney may not need to execute implementing anything, since they already own a fully-operational and fairly successful one of their own.
It'll increasingly be as the other content producers feel threatened by Netflix and balkanize their content into their own services. Netflix has to convert to more of an HBO model where they have their own quality originals that bring eyeballs, and they're already on their way towards that.
Plus I do genuinely believe that Netflix has been successful in creating new interesting, quality content and partnering with a variety filmmakers. Some of their docu-series have rivaled HBO's Documentaries!