Brew Markets Daily – Disney: When You Wish Upon AI & Oracle Loses $100B in Market Cap

Host: Anne Barry (with John Croteau)
Date: December 11, 2025

Episode Overview

This episode covers some of the most compelling stock market stories of the day, focusing on Disney’s $1 billion investment and landmark AI deal with OpenAI, Oracle’s $100 billion market cap drop amid AI spending fears, and a roundup of other notable business and earnings news, including Vail Resorts, Coca Cola, Manchester United, and IP litigation in the age of AI. Anne Barry and John Croteau break down what these moves mean for investors, the companies involved, and broader market trends.

Key Discussion Points & Insights

1. Disney's Landmark AI Deal with OpenAI and Sora

[00:31–04:00, 20:34–22:03]

• Disney announced a $1 billion equity investment in OpenAI and a three-year licensing agreement, letting Sora (OpenAI's text-to-video app) create user-generated short videos featuring Disney, Marvel, Pixar, and Star Wars characters.
• These fan-created Sora videos will stream on Disney+, marking a bold content strategy shift and direct challenge to both Netflix and YouTube.
• The deal is described as "circular," with Disney becoming both a major customer (using OpenAI’s APIs and ChatGPT for employees) and investor.
• IP & Copyright: Disney emphasized a “shared commitment” to responsible AI, protecting both users and creators; notably, actors’ voices will not be made available to Sora.
• Anne’s take:

  "If you can’t beat them or cease and desist them, then join them. Just get a licensing agreement in place to get the money first." – Anne Barry (03:27)

• Disney shares rose 1.5% on the news.

Disney v. Google – Copyright Clash in AI

• Last night, Disney sent a cease and desist letter to Google, alleging unauthorized use of Disney IP for AI training and distribution.
• Quote from Disney’s letter (read on-air):

  “Google is infringing Disney's copyrights on a massive scale by copying a large corpus of Disney’s copyrighted works without authorization to train and develop generative artificial intelligence models and services.” – [20:59]

• Disney alleges Google used IP from Frozen, Lion King, Moana, Deadpool, Star Wars, and more.
• Disney is also litigating against Meta, CharacterAI, Midjourney, and Minimax for similar IP concerns.

2. Oracle’s $100 Billion Market Cap Loss & The “AI Bubble?”

[04:28–12:26]

• Oracle’s market cap fell from $635B to $535B overnight after a critical earnings report, driven by skepticism about its costly AI infrastructure expansion.
• Oracle is transforming from a database software giant to a major cloud infrastructure contender.
• Cloud infrastructure unit outperformed app business for the first time, but margins turned out “thinner than expected.”
• CapEx hit $12B last quarter (50% over analyst expectations), and Oracle didn’t provide clear future cost or debt guidance.
• Anne’s take:

  “The market saying, how on earth, Oracle, are you going to pay for it?” – Anne Barry (07:18)

• Oracle claims to have $520B+ of contracted future revenue (over half from OpenAI), but doubts remain if OpenAI can deliver.
• Contract with OpenAI is $300B over 5 years, but Oracle’s data center leases last 10+ years—raising concerns about being left with “the bag” if OpenAI falters.
• Oracle’s credit risk hit a 16-year high, stoking bubble fears as more debt funds AI buildouts.
• John sums up:

  “Sam Altman's OpenAI is allowing Oracle to do all the hard work and costly legwork of setting up these data centers and then running their company off of it.” – John Croteau (10:09)

• Oracle stock down “about 10.5% today” and has lost a third of its value since September.
• The Ellison family’s interests (both Oracle and Skydance/Paramount) mean Oracle’s volatility has far-reaching implications.

3. Vail Resorts Earnings and CEO Return

[12:27–18:02]

• Vail Resorts (ticker: MTN) lost $187M, but net revenue rose 4% YoY; big surprise: growth came from Australia.
• Despite challenges, EBITDA projections for 2026 remain strong ($842M–$898M).
• Ski pass sales are down 2%, but pass prices are up 7%. Pricing has been a point of contention.
• Stock up 9% on the day after outlining a turnaround plan led by returning CEO Rob Katz (previously CEO for 15 years, returned in 2024).
• Katz is refocusing on brand awareness, influencer marketing, and single-day skiers rather than just season passes.
• Anne draws an analogy:

  “Going back to basics… getting your marketing program up to date, going digital, going influencer and thinking about how to get people like me who maybe don’t want to be a season pass holder…” – Anne Barry (16:12)

• Lift prices lowered at some resorts, investments in “remote avalanche control systems” and upgrades to lifts.
• Anne emphasizes:

  “You can’t have roller coasters going wrong. You can’t have your gondola going wrong in Park City. These kinds of things, I mean, these are horror stories.” – Anne Barry (18:02)

• Safety and reliability will become selling points in new marketing strategies.

4. Fast Headlines: Manchester United, Coca Cola, "Eye-Popper" Chart

[22:03–25:41]

• Manchester United (Ticker: MANU): Quarterly revenue just over £140M. Net debt at a 20-year high due to recruiting spending. New ownership (INEOS) is focused on cost-cutting (even “no more free lunches at the staff canteen”).
• Coca Cola: Incoming CEO (Brian Smith, previously COO) will take over March 31. Outgoing CEO James Quincey lauded, with stock up 30% over five years. Market nervous about the new leadership.
• Big Chart: Apollo star analyst Torsten Slock warns that the S&P 500's current price-to-earnings (P/E) ratios imply a “0% annualized return over the next decade,” per his correlation analysis.

  “When somebody like that, with that kind of scale of audience, says something like this, it’s a warning bell.” – Anne Barry (24:48)

• Anne promises more analysis and predictions for 2026 in upcoming episodes.

Notable Quotes

• On the Disney–OpenAI deal:

  “Disney, to me, is saying if you can’t beat them or cease and desist them, then join them.”
  – Anne Barry (03:27)

• On Oracle's capex worries:

  "How on earth, Oracle, are you going to pay for it?"
  – Anne Barry (07:18)

• On OpenAI’s deal structure with Oracle:

  “Sam Altman's OpenAI is allowing Oracle to do all the hard work and costly legwork... and then running their company off of it.”
  – John Croteau (10:09)

• On Vail’s turnaround:

  “Going back to basics… getting your marketing program up to date, going digital, going influencer…”
  – Anne Barry (16:12)

• On the warning from Apollo’s chief economist:

  “…if you take a look at the P ratios of the S P500 today… he would say the correlation analysis would predict a 0% return… over the coming decade… it’s a warning bell.”
  – Anne Barry (24:48)

Timestamps for Major Segments

| Time | Segment | |-------------|------------------------------------------------------------------------| | 00:31–04:00 | Disney–OpenAI deal, “circular investments,” Sora AI & content strategy | | 05:34–12:26 | Oracle earnings reaction, AI spending, bubble fears | | 12:27–18:02 | Vail Resorts earnings, CEO return, business strategy | | 20:05–20:34 | Market wrap – closing bell & indices | | 20:34–22:03 | Disney’s cease & desist to Google; broader copyright litigation | | 22:03–23:26 | Manchester United earnings & cost cutting | | 23:26–23:39 | Coca Cola CEO transition | | 24:00–25:41 | Apollo analyst’s “eye-popping” chart, S&P 500 warning |

Tone & Style Notes

The episode maintains Morning Brew’s signature blend of breezy expertise, light banter, and sharp business acumen. Anne Barry is candid, energetic, and consistently puts financial news in context for everyday investors, while John Croteau adds analytical depth and sharpens the focus on key numbers and implications. Jokes about skiing ability and mentions of listener mail help keep the conversation relatable, even as the subject matter remains sophisticated.

For more detailed prediction analysis and ongoing trends, tune in to upcoming Brew Markets episodes!