News The Walt Disney Company Board of Directors Extends Robert A. Iger’s Contract as CEO Through 2026

[Vegas Disney Fan]

Nothing Bob has proposed since his he dismounted his white horse 18 months ago indicate any “improvement” to the problems that were hatched under his previous reign.

Not one of them.

We can agree to disagree.

This is where my discontent comes from also, I wasn’t expecting shovels in the ground within the first year or 2 but hugely unpopular changes like Genie, Magical Express, the reservation system, etc are all problems that should have been resolved in the first 6 months and haven’t been. The fact they haven’t changed any of the easy stuff makes me skeptical of their promises on the big stuff.

I know he’s been dealing with bigger problems like the movie failures, D+ loses, the fight with FL, a proxy fight, etc but he hasn’t thrown us fans a single bone anywhere. If I was a stockholder I’d probably be pretty pleased right now but as a Disney parks and movies fan this is the darkest time in 40 years.

 

[Sirwalterraleigh]

@Sirwalterraleigh ,
Stop with the misplaced skepticism. Those same people from Burbank went to D23 2019 and stood on stage and promised a rejuvenated Spaceship Earth, a new Play! pavilion, a Mary Poppins attraction, a new festival center, and a new China 360 film.

But…but…

Did something significant happen in 2020?

Indeed…epic universe construction accelerated greatly

 

[Sirwalterraleigh]

This is where my discontent comes from also, I wasn’t expecting shovels in the ground within the first year or 2 but hugely unpopular changes like Genie, Magical Express, the reservation system, etc are all problems that should have been resolved in the first 6 months and haven’t been. The fact they haven’t changed any of the easy stuff makes me skeptical of their promises on the big stuff.

I know he’s been dealing with bigger problems like the movie failures, D+ loses, the fight with FL, a proxy fight, etc but he hasn’t thrown us fans a single bone anywhere. If I was a stockholder I’d probably be pretty pleased right now but as a Disney parks and movies fan this is the darkest time in 40 years.

They don’t see this

It’s all about “promises”…and the next trip to port orleans

 

[Casper Gutman]

This is where my discontent comes from also, I wasn’t expecting shovels in the ground within the first year or 2 but hugely unpopular changes like Genie, Magical Express, the reservation system, etc are all problems that should have been resolved in the first 6 months and haven’t been. The fact they haven’t changed any of the easy stuff makes me skeptical of their promises on the big stuff.

I know he’s been dealing with bigger problems like the movie failures, D+ loses, the fight with FL, a proxy fight, etc but he hasn’t thrown us fans a single bone anywhere. If I was a stockholder I’d probably be pretty pleased right now but as a Disney parks and movies fan this is the darkest time in 40 years.

You think Peltz will change those things? You think any realistic board or CEO will?
Wall Street culture loathes theme parks largely because there’s rarely a clear ROI. Genie provides that.

Supporting or even contemplating Peltz because of those things is an exercise in utter futility or worse.

 

[Sirwalterraleigh]

You think Peltz will change those things? You think any realistic board or CEO will?
Wall Street culture loathes theme parks largely because there’s rarely a clear ROI. Genie provides that.

Supporting or even contemplating Peltz because of those things is an exercise in utter futility or worse.

Peltz is the OTHER guy who will change none of those things.

You’re just repeating the same thing…who has said they’d even vote for Peltz? One or two people here at most.

 

[Tha Realest]

Did something significant happen in 2020?

Yes - an extinction level event that somehow missed terrible films and series, restaurants, DVCs, the Galactic Starcruiser, and Epic Universe

 

[BrianLo]

They did, except for Comcast who has nearly everything Disney has plus a built in utility people can't live without. Yet even with that Disney is now outperforming them today, the 5 day, the 1 month, the 6 month, the year to date, the 1 year, and the 5 year.

Comcast being tilted to Utility and Disney being tilted to Streaming. It’s why Disney has gyrated more than the average. It was a streaming bubble by and large disconnecting Disney from their underlying metrics during the Pandemic. Comcast was less prone to the up and down swing… because their streaming service is currently the big loser of the lot. But they are also less exposed to the pending upside as some of the streaming returns start to become a reality in the back half of the decade.

I’m very curious what Comcast chooses to do. They could exit streaming and license to Netflix or they could conglom into WB-Discovery / Paramount Plus. But they certainly can’t continue as Peacock solo.

I see the inevitable future as 4-6 major general entertainment/family options with a few speciality streams (things like sports, anime, etc).

-Netflix will be there.
-Disney+ (which already technically is eating Hulu) will be there
-Amazon Prime kind of will be forced to be there by its parent, whether it’s deserving is another matter.
-WB-Discovery - attached to something else will be there.
-Paramount Plus could be a foundation for someone else or can be absorbed by any of the players, but whoever eats it will be on this list.

That’s kind of it the way things are looking, Apple will remain a minor.

 

[Sirwalterraleigh]

Comcast being tilted to Utility and Disney being tilted to Streaming. It’s why Disney has gyrated more than the average. It was a streaming bubble by and large disconnecting Disney from their underlying metrics during the Pandemic. Comcast was less prone to the up and down swing… because their streaming service is currently the big loser of the lot. But they are also less exposed to the pending upside as some of the streaming returns start to become a reality in the back half of the decade.

I’m very curious what Comcast chooses to do. They could exit streaming and license to Netflix or they could conglom into WB-Discovery / Paramount Plus. But they certainly can’t continue as Peacock solo.

I see the inevitable future as 4-6 major general entertainment/family options with a few speciality streams (things like sports, anime, etc).

-Netflix will be there.
-Disney+ (which already technically is eating Hulu) will be there
-Amazon Prime kind of will be forced to be there by its parent, whether it’s deserving is another matter.
-WB-Discovery - attached to something else will be there.
-Paramount Plus could be a foundation for someone else or can be absorbed by any of the players, but whoever eats it will be on this list.

That’s kind of it the way things are looking, Apple will remain a minor.

The problem is scale…streaming does not…has never generated the revenues or profits that its predecessors or other portfolio compenents had.

Netflix total Revenues - the whole shebang - was $33 billion in 2023

Disney PARKS revenue was $32

 

[Vegas Disney Fan]

You think Peltz will change those things? You think any realistic board or CEO will?
Wall Street culture loathes theme parks largely because there’s rarely a clear ROI. Genie provides that.

Supporting or even contemplating Peltz because of those things is an exercise in utter futility or worse.

Yet somehow the parks not only thrived but were a cash cow for 50 years before the blatant nickel and diming began.

And yes, I hope the next regime will go back to the previous Disney standards, if Disney continues along this path of “less for more” I won’t care because I won’t be going there anymore.

 

[BrianLo]

Nothing Bob has proposed since his he dismounted his white horse 18 months ago indicate any “improvement” to the problems that were hatched under his previous reign.

Not one of them.

We can agree to disagree.

1) Planned Increased parks capex spend?
2) Merging their India operations into a joint venture and exiting India?
3) Launching a sports joint venture?
4) Undoing Chapek’s creative reorganizations?
5) Hulu integration
6) Backing down on Florida? (Though admittedly that may not be smart).
7) Layoffs and cost optimizations

I’m not saying they are all good or bad and I know you doubt the first one’s plausibility. I think 6 is TBD and 7 is controversial (though good for shareholders). But they are large moves.

 

[Nubs70]

How much do you think buybacks change the stock price? If you believe in an efficient market - the market cap remains exactly fixed and share prices increase to match. Which since this is like a 1% buyback means 1%. Technically speaking that’s already been priced in.

So where is the other 49%?

Disney plus isn’t going to make a million bucks a quarter, the market is saying Disney plus has long term double digit Netflix adjacent earnings potential, it is forward looking. If you think that’s totally bonkers the stock price will collapse when that proves to not be possible.

The other 49% is future expectation

 

[BrianLo]

The problem is scale…streaming does not…has never generated the revenues or profits that its predecessors or other portfolio compenents had.

Netflix total Revenues - the whole shebang - was $33 billion in 2023

Disney PARKS revenue was $32

Definitely. Though it’s a matter of eliminating the middle man. The pie is much smaller than the linear days, but the slice of it can be much bigger without the cable companies involved. So I do think streaming for select companies can be as if not more profitable than the linear version, there are just less companies.

As to your latter point I completely agree. It’s also why I think Netflix carrying a large market cap than the entirety of Disney demonstrates all the fluff is streaming related and their underlying actual profitable businesses were being discounted. Disney is currently and should be a much bigger company than Netflix…

 

[BrianLo]

The other 49% is future expectation

Yup! Well a big portion at least. A big chunk was also because their revenue and free cash flow has improved (mostly what was realized immediately post the q1 earnings).

Half current achievement and half future expectancy that the recovery will keep on rolling. Very well supported by analyst upgrades with basically a shrug from the market every time Peltz has done anything.

 

[Sir_Cliff]

Yet somehow the parks not only thrived but were a cash cow for 50 years before the blatant nickel and diming began.

And yes, I hope the next regime will go back to the previous Disney standards, if Disney continues along this path of “less for more” I won’t care because I won’t be going there anymore.

The thing about Peltz's challenge is that he is foreshadowing how things could be worse in the parks by promising to be stricter in demanding ROI from new developments. Does anyone really think the formulas that will be applied have been developed to measure the ROI of "the little details" or "the Disney difference"?

Similarly, the idea that breaking up the company could lead toward some kind of Oriental Land Company scenario is largely fanciful. Who do you think will have the resources and want to buy a big theme park company in the US and how likely is it that they will want to spend big bucks on keeping WDI around in any capacity beyond a name for the division that contracts out individual projects? Not sure why anyone sees contemporary corporate culture in the US and the track record of Peltz and comes to the conclusion that the best bet for restoring the old standards is injecting more of that into how the company is run.

 

[Sirwalterraleigh]

Definitely. Though it’s a matter of eliminating the middle man. The pie is much smaller than the linear days, but the slice of it can be much bigger without the cable companies involved. So I do think streaming for select companies can be as if not more profitable than the linear version, there are just less companies.

As to your latter point I completely agree. It’s also why I think Netflix carrying a large market cap than the entirety of Disney demonstrates all the fluff is streaming related and their underlying actual profitable businesses were being discounted. Disney is currently and should be a much bigger company than Netflix…

The question is are the numbers real? Wall Street numbers are no longer required to be. It’s all speculative.

So what could be true:
1. Netflix value is inflated
2. Disney tangible assets are devalued
3. Both
4. Neither

It’s probable 3

 

[Casper Gutman]

Yet somehow the parks not only thrived but were a cash cow for 50 years before the blatant nickel and diming began.

And yes, I hope the next regime will go back to the previous Disney standards, if Disney continues along this path of “less for more” I won’t care because I won’t be going there anymore.

No realistic successor will do what you hope for. Iger is not the problem. American corporate culture is the problem. Peltz represents the absolute worst of that culture.

If these are your terms, make peace with not visiting Disney parks and understand that Uni is not an alternative- it suffers from the exact same forces.

 

[Casper Gutman]

Yes - an extinction level event that somehow missed terrible films and series, restaurants, DVCs, the Galactic Starcruiser, and Epic Universe

Ah, glibness about a pandemic that killed over a million Americans.

Epic Universe ceased construction for quite some time and cut significant amounts from the park, which will open severely underbuilt. All films and series, “terrible” and otherwise, were profoundly effected - Hollywood still hasn’t returned to “normal.” As always, you’re understanding of history is profoundly selective

 

[Sirwalterraleigh]

How much do you think buybacks change the stock price? If you believe in an efficient market - the market cap remains exactly fixed and share prices increase to match. Which since this is like a 1% buyback means 1%. Technically speaking that’s already been priced in.

So where is the other 49%?

Disney plus isn’t going to make a million bucks a quarter, the market is saying Disney plus has long term double digit Netflix adjacent earnings potential, it is forward looking. If you think that’s totally bonkers the stock price will collapse when that proves to not be possible.

In the case of Disney…the promise of buybacks increased the stock price by 25%

That’s it. Nothing their doing “product”
Wise today affects the price at all.

 

[Sirwalterraleigh]

Interesting

The New York City Retirement System plans to vote in support Walt Disney CEO Bob Iger and the company's board, rejecting the nominees of two hedge funds, including Nelson Peltz's Trian, in a bruising boardroom battle.

That was party of the story yesterday. The California fund didn’t make comment as far as I know? That is interesting

 

[WoundedDreamer]

Disney can't comment on the vote total. That would be illegal. The fact that this is being treated as gospel when it's from an anonymous source is stunning.

Disney doesn't have to provide the vote total. All they need to do is say something like:

The numbers cited by your source are erroneous, and not reflective of the actual voting tallies. We remain committed to ensuring competent board leadership, and avoiding the distraction that these baseless figures create.

And like that, Disney has clarified that the source is bunk WHILE avoiding giving specifics. But instead, Disney decided to attack the individual who leaked them. Not the substance of the leak, but the character of the leaker. Alternatively, if the lawyers are a little squeamish over that, Disney could follow a different strategy:

The Walt Disney Company refuses to comment on the validity of these specific figures, but we do encourage your readers to be skeptical of any unverified data. If our shareholders or the media are interested in learning about this proxy fight, please visit thewaltdisneycompany.com and votedisney.com. The Walt Disney Company remains focused on ensuring that our qualified list of candidates are successful in our upcoming shareholder meeting.

This move is also effective, because Disney has not commented at all on the voting tally. But they still manage to put it under a cloud of suspicion. It's "unverified" and therefore suspect, whether or not it's true. They could also pull the following:

We are dismayed to see that supporters of Trian's nominees seem to be spreading rumors about the voting tallies. For official information on the proxy fight, please visit thewaltdisneycompany.com and votedisney.com. We are confident that our highly qualified board nominees will be victorious.

This is also a good one, because the rumors could be true or untrue. But after you have labelled something a "rumor" anyone will question it and take it as suspicious. Instead, they went with the following:

A spokesman for Disney said leaking an early vote count was ‘a highly inappropriate attempt to sway votes.’

While we don't have the full quote, it seems like we didn't get a strong denial or even a hint of doubt being thrown over the figures. That suggests either the spokesman was shooting from the hip (a mistake), or they didn't want to actually cast doubt on the figures because they're real. Disney also could have updated their votedisney.com website if they felt their comment had been misconstrued by the WSJ.

But ultimately, each individual can make up their own determination.