News Bob Iger is back! Chapek is out!!

[Slpy3270]

From Kim Masters, who never misses:

Behind Disney’s Activist Investor Battle: A Marvel Mogul’s Revenge Play

As activist shareholder Nelson Peltz presses a long-shot fight for a seat on Disney’s corporate board, with help from former Marvel honcho Ike Perlmutter, Bob Iger appears to be solidifying his control.

www.hollywoodreporter.com

Apparently Iger wants McCarthy to be gone too despite everything she did for him. Why? Because her cost-cutting enthusiasm is coming at odds with creatives, whom Iger wants to protect.

Also, Rich Greenfield says something intelligent for once:

Stressing the secular change in the business is likely to carry weight on Wall Street. In fact, analyst Rich Greenfield had made that point using some of the same language even before the most recent Disney filing. He noted that Disney is hardly alone in facing strong headwinds and that Peltz had entirely neglected that point in his criticisms of the company. “There are major secular challenges facing this entire sector,” Greenfield said. Given that, “it just feels like Peltz doesn’t understand media in 2023.”

 

[Sirwalterraleigh]

I was around (or at least reading the news) for the Save Disney fight, and it was the same kind of gross personal politics we are seeing now. Roy got what he wanted and nothing was really "saved" at all.

The board still has to answer to shareholders and if there were legitimate concerns from the shareholders, they would be addressed.

Disney is saying with this release that they tried everything they could to reach an understanding with Peltz, to address his concerns, but the only thing he wanted was his own personal self aggrandisement.

Read up then…a refresher is in order.

 

[GhostHost1000]

It was a plan to make a major shift in a major part of the company's business. While executing on the plan, they've encountered a global pandemic, a labor shortage, supply chain issues, economic instability, fierce competition, leadership changes, and now a proxy fight. How could they have foreseen these? The fact that the plan is still working despite all this shows it was a good and durable plan and that Disney has been able to be flexible while keeping their eye on the ball.

Again, I still haven't seen what you (or @GhostHost1000) would propose Disney to have done instead, other than "business as usual."

I don't have all the answers (like Disney) but their plan for D+ to be profitable in its current form and strategy/rollout to date the way they have was just hoping things would just magically work out.

One thing I would have proposed would be to not lose sight and investment on the theme parks while you're using it to fund another part of your company

We know some of the issues with maintenance etc. in the post covid timeframe, but after TRON what will the parks see as an addition over say the next 3-5 years to help spread out the crowds and keep people wanting to come back for something new? (Moana's water walk, new EPCOT fireworks show?). We are entering a stale parks period at the worst time. Uni is loving the timing as well

 

[LSLS]

From Kim Masters, who never misses:

Behind Disney’s Activist Investor Battle: A Marvel Mogul’s Revenge Play

As activist shareholder Nelson Peltz presses a long-shot fight for a seat on Disney’s corporate board, with help from former Marvel honcho Ike Perlmutter, Bob Iger appears to be solidifying his control.

www.hollywoodreporter.com

Apparently Iger wants McCarthy to be gone too despite everything she did for him. Why? Because her cost-cutting enthusiasm is coming at odds with creatives, whom Iger wants to protect.

Also, Rich Greenfield says something intelligent for once:

LOL. Iger already firing off potential replacements (wasn't she linked like 3 weeks ago?). It's as if he never left. The attempt to spin his legacy is just amazing at this point. He's the creative guy that doesn't want any cost cutting, huh? The stocks weren't anywhere on his radar I guess.

 

[GhostHost1000]

LOL. Iger already firing off potential replacements (wasn't she linked like 3 weeks ago?). It's as if he never left. The attempt to spin his legacy is just amazing at this point. He's the creative guy that doesn't want any cost cutting, huh? The stocks weren't anywhere on his radar I guess.

it's all smoke and mirrors - you can tell Iger wants to be in politics... or sell used cars, one of the other

 

[Sirwalterraleigh]

Apparently Iger wants McCarthy to be gone too despite everything she did for him. Why? Because her cost-cutting enthusiasm is coming at odds with creatives, whom Iger wants to protect.

“First rule of assassination…kill the assassins”
- James T Kirk

 

[DCBaker]

A few comments from Josh D'Amaro on the parks from a Q&A with media this morning - below is from an article at DFB.

On recent revenue-driving changes -

"To combat this narrative, Disney has recently rolled back a few policies, like paid parking at their resort hotels in Disney World. But some stakeholders see this as too little, too late, and are left wondering if the parks will continue to carry the budgetary weight of the company…and if guests will be the ones bearing the brunt through more price increases and the elimination of previously free amenities.

According to Josh D’Amaro, the two are not connected. “It’s easy to make that association,” he says of the revenue-enhancing DPEP changes being attached to budget hiccups in streaming. But “losses elsewhere in the company have nothing to do with what decisions are made at the parks level,” he says. “We’re not going to raise the price of a bottle of Dasani because of budgetary concerns in another part of the company.”

He also says that Disney+ losses have no affect on what’s green lit in the parks. In fact, D’Amaro was adamant that the Walt Disney Company is on the brink of their biggest projects yet. “We have no shortage of money. We wanna make sure we do the biggest things, the coolest things, the things that represent the future.”

And in reference to guest concerns that Disney parks projects may be curtailed due to budgetary issues elsewhere in the company, D’Amaro responded, “Our capital spending is higher than it’s ever been before. People are looking for reasons why we shouldn’t be investing, but we’re investing more. That’s not gonna stop as long as I’m in charge. If anybody’s worried that we’re pulling back, we’re not.”"

On the Blue Sky talks at the D23 event last September -

"Today, D’Amaro confirmed these parks expansion projects are still under consideration. “Imagineers are really talking about these,” he says. “We want to pull back the curtain.”

According to D’Amaro, the future is bright for the Disney parks. And it genuinely seems like he’s grateful to be at the helm during what he clearly sees as an explosive time of opportunity."

"There's No Shortage of Money" Says Disney Executive on New Theme Park Projects | the disney food blog

Do Disney's streaming losses affect new projects at the parks? This Disney Exec says no.

www.disneyfoodblog.com

 

[bcoachable]

Did Zenia come back on board with Iger? Just wondering- as she seemed to be able to rudder the ship in the media as needed during situations such as this in the past- wondering if she is around to help navigate these current waters…

 

[_caleb]

I don't have all the answers (like Disney) but their plan for D+ to be profitable in its current form and strategy/rollout to date the way they have was just hoping things would just magically work out.

I mean, it seems like staying the course would have been "just hoping things would magically work out." The pivot to DtC seems pretty gutsy but it is Disney leaning on their strengths. I'm not sure there will be a better time to make a change like this.

One thing I would have proposed would be to not lose sight and investment on the theme parks while you're using it to fund another part of your company

I'm not sure why you keep saying this as though the end of their plan was to operate streaming at a major loss and to never invest in the parks again.

We know some of the issues with maintenance etc. in the post covid timeframe, but after TRON what will the parks see as an addition over say the next 3-5 years to help spread out the crowds and keep people wanting to come back for something new? (Moana's water walk, new EPCOT fireworks show?). We are entering a stale parks period at the worst time. Uni is loving the timing as well

I agree. Maintenance should be a priority. GotG just opened, TRON is coming soon (eventually?), and word is there's a new announcement coming soon to try to calm people down and signal ongoing investment in the parks. But Disney doesn't need a new major attraction every year to keep people coming back.

 

[flynnibus]

Chapek and McCarthy's first mistake was they negotiated with terrorists.

It's part of the game. The publicly traded company can't simply wall up and hide from them. These are not simply internet trolls - they are investor trolls who through their actual purchase of stock do get to be horseflys that do need to be dealt with.

 

[GhostHost1000]

A few comments from Josh D'Amaro on the parks from a Q&A with media this morning -

He also says that Disney+ losses have no affect on what’s green lit in the parks. In fact, D’Amaro was adamant that the Walt Disney Company is on the brink of their biggest projects yet. “We have no shortage of money. We wanna make sure we do the biggest things, the coolest things, the things that represent the future.”

And in reference to guest concerns that Disney parks projects may be curtailed due to budgetary issues elsewhere in the company, D’Amaro responded, “Our capital spending is higher than it’s ever been before. People are looking for reasons why we shouldn’t be investing, but we’re investing more. That’s not gonna stop as long as I’m in charge. If anybody’s worried that we’re pulling back, we’re not.”"

I’m calling bs here otherwise things would already be under construction…or heck even announced. We know how long it takes them to build anything now adays. That is troubling.

One of the reasons capital spending is “more than it’s ever been” is because their cost to do anything these days is ridiculously inflated beyond what it should be. If Disney were building Epic Universe it would probably cost twice as much

 

[GhostHost1000]

Disney doesn't need a new major attraction every year to keep people coming back.

no they don’t…but have you seen how long it takes them to build any new attraction now? We don’t even have an announcement of a plan, or shovels in the ground. This means poor planning and a stale period coming

 

[orky8]

Could you please start arguing from facts? What exactly is "overpaying"? How much was 20th CF really worth?

The Slide Deck Disney just put out shows that debt is under control and they are not over-leveraged. They did remarkably well considering the pandemic practically closed all but one of their divisions for two years.

Once they bought Fox Studios, they sold off the Sky portion to Comcast, as well as many of the regional sports channels. So... tell me what was the final cost to Disney? If you don't know that... then you shouldn't be involved in this topic.

It cost them their soul.

(A bit too melodramatic? Seems about right to me)

 

[_caleb]

no they don’t…but have you seen how long it takes them to build any new attraction now? We don’t even have an announcement of a plan, much less shovels in the ground. This means poor planning and a stale period coming

I know, Disney's timelines and costs seem out of control. But to say this (EDIT: this = "no new attraction announcements") means "poor planning..." what makes you think this isn't part of the plan? Historically, they've built in spurts and then had periods of little construction. And right now, in the midst of one of the biggest, riskiest changes to their business, it seems like a good time to let the money machine print money until they can get their streaming ducks in a row.

I’m calling bs here otherwise things would already be under construction…or heck even announced. We know how long it takes them to build anything now adays. That is troubling.

Whatever you think Disney gets out of a big announcement of actual plans they just literally got out of two college kids riffing in a blue sky "what if" presentation at D23.

 

[GhostHost1000]

I know, Disney's timelines and costs seem out of control. But to say this means "poor planning..." what makes you think this isn't part of the plan? Historically, they've built in spurts and then had periods of little construction. And right now, in the midst of one of the biggest, riskiest changes to their business, it seems like a good time to let the money machine print money until they can get their streaming ducks in a row.


Whatever you think Disney gets out of a big announcement of actual plans they just literally just got out of two college kids riffing in a blue sky "what if" presentation at D23.

So Disney’s costs being out of control might be part of their plan? If that case it’s worse than I thought.

 

[el_super]

According to Josh D’Amaro, the two are not connected. “It’s easy to make that association,” he says of the revenue-enhancing DPEP changes being attached to budget hiccups in streaming. But “losses elsewhere in the company have nothing to do with what decisions are made at the parks level,” he says. “We’re not going to raise the price of a bottle of Dasani because of budgetary concerns in another part of the company.”

Good to see this said. Disney reports parks revenue separate from DTC, so it never made sense that some would think wins at the parks would somehow cover up the losses elsewhere.

And in reference to guest concerns that Disney parks projects may be curtailed due to budgetary issues elsewhere in the company, D’Amaro responded, “Our capital spending is higher than it’s ever been before. People are looking for reasons why we shouldn’t be investing, but we’re investing more. That’s not gonna stop as long as I’m in charge. If anybody’s worried that we’re pulling back, we’re not.”"

It is, bluntly, pretty bold of him to come out and say this when Wall Street wants cost cutting. Not counting the pandemic years, they just finished spending several billion across all their resorts. It would make perfect financial sense, to sit back and wait for everyone to pay for a visit to Galaxy's Edge/Guardians/TRON before you commit to more spending.

 

[el_super]

So Disney’s costs being out of control might be part of their plan? If that case it’s worse than I thought.

I thought they didn't plan for Disney+ to be profitable until 2024? They knew it was going to cost money to get setup and running.

 

[GhostHost1000]

I thought they didn't plan for Disney+ to be profitable until 2024? They knew it was going to cost money to get setup and running.

Yeah I think that is correct but they aren’t going to hit their target from the looks of it.

 

[_caleb]

So Disney’s costs being out of control might be part of their plan? If that case it’s worse than I thought.

No. I meant that "no new attractions being announced" may be part of the plan. I edited my post in case that wasn't clear.

But I'm disappointed in the lack of alternative ideas.

 

[el_super]

Yeah I think that is correct but they aren’t going to hit their target from the looks of it.

As of the last year-end results announced by Chapek, they still expect to make the 2024 target to be profitable. They expected FY22 to be the peak of their loses.

A lot of this concern is being driven not because the plan is falling apart, but because Wall Street got all twisted up thinking their was going to be a recession tomorrow, and they didn't want to sit around and wait for money...