Unsure who to vote for regarding the Walt Disney Co. Board

Brian

Well-Known Member
Please show how street entertainment, C or D ticket rides, increased maintenance, merch/food quality generate a good ROI.

I'll help, you can't.

That is the problem with people who ignore other metrics and focus so heavily on something as simplistic as ROI. Yes, Iger is guilty of this too which is one reason I am ready for him to go but why bring in a worse version of what we are all already sick of dealing with?
A lack of all of those things leads to a decrease in revenue over time, since competition, as Peltz points out (namely Universal), is placing an emphasis on that. If there is a better bang for your buck up the road, guests are inclined to go there. Also, if you don't have new things for people to see, they'll be less inclined to visit.

In other words, you have to spend money to make money.
 

LSLS

Well-Known Member
If it isn’t Peltz it will just be someone else.

There is no future under Bob Iger and the board refuses to remove him.

The same tired excuse. There is no one who can do the job.

All the executives on earth that would be dying to be known as the Man/Women who saves Disney, but only the almighty Iger can do the job.
I agree, but a guy who's only concern is making himself money isn't exactly the guy I'd be jumping up and down with excitement to use as the replacement.
 

Dranth

Well-Known Member
A lack of all of those things leads to a decrease in revenue over time, since competition, as Peltz points out (namely Universal), is placing an emphasis on that. If there is a better bang for your buck up the road, guests are inclined to go there. In other words, you have to spend money to make money.
Revenue is not ROI; it has to bring in more revenue than the increased costs to impact ROI positively so to improve on what they are already getting they must either charge a lot more so they can spend more or decrease cost and spend the same or less.

That is what Peltz is saying and do you REALLY trust he isn't going to push for charge more and spend less? The same guy who about wet his pants when talking about what an amazing job Chapek did in that very department.
 

Brian

Well-Known Member
I honestly do not know what being broken up means.

Disneyparks will still be Disneyparks.
Think Walt Disney World but with a third-party operator, and maybe even owner. It would likely be a near-identical arrangement to Tokyo Disney Resort. The average guest wouldn't know they're not Disney unless they asked.
 

mikejs78

Premium Member
And let’s say the parks are broken off. Does that mean all the money the parks make can go back into the parks instead of propping up a company that keeps making money losing movies?

There are two ways that buying the parks could go. The first is a firm that wants the parks to grow and become a larger business. The second is a firm that wants to bleed it dry, make a profit, then cast it aside.

Plus, if the parks get sold, it would involve licensing deals with whatever company holds the IP for Disney. That sets up a precarious position where the eventual holding company could decide to pull the plug on IP, or jack up the cost for the IP so much that the new parks company couldn't afford it.

I wouldn't want that risk.
 

mikejs78

Premium Member
Think Walt Disney World but with a third-party operator, and maybe even owner. It would likely be a near-identical arrangement to Tokyo Disney Resort. The average guest wouldn't know they're not Disney unless they asked.
I don't think comparing it to Tokyo is realistic - in a world where Parks gets sold off, Disney itself is a very different company and may not have the same incentive to suppoor the parks with its branding / IP.
 

Casper Gutman

Well-Known Member
There are two ways that buying the parks could go. The first is a firm that wants the parks to grow and become a larger business. The second is a firm that wants to bleed it dry, make a profit, then cast it aside.

Plus, if the parks get sold, it would involve licensing deals with whatever company holds the IP for Disney. That sets up a precarious position where the eventual holding company could decide to pull the plug on IP, or jack up the cost for the IP so much that the new parks company couldn't afford it.

I wouldn't want that risk.
The parks would also no longer be part of an integrated whole, in which one part of the company supports the other. The lack of this synergy would be profoundly damaging. This is true even if you, like myself, are frustrated by the current IP-centered direction of the parks.
 

Trauma

Well-Known Member
Revenue is not ROI; it has to bring in more revenue than the increased costs to impact ROI positively so to improve on what they are already getting they must either charge a lot more so they can spend more or decrease cost and spend the same or less.

That is what Peltz is saying and do you REALLY trust he isn't going to push for charge more and spend less? The same guy who about wet his pants when talking about what an amazing job Chapek did in that very department.
You can also drive revenue with increased attendance. The problem is they have failed to build out the parks and surrounding infrastructure in a way that can handle more guests satisfactorily.

That is a complete lack of vision and strategic failure that falls squarely on Bob Iger.

They have pushed every other lever so far that it’s starting to push back.

The level of investment needed to correct this is astronomical and we still have a black hole called D+ consuming capitol.

Something drastic needs to change and Bob Iger is not going to be the one to make it happen.
 
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Brian

Well-Known Member
Revenue is not ROI; it has to bring in more revenue than the increased costs to impact ROI positively so to improve on what they are already getting they must either charge a lot more so they can spend more or decrease cost and spend the same or less.

That is what Peltz is saying and do you REALLY trust he isn't going to push for charge more and spend less? The same guy who about wet his pants when talking about what an amazing job Chapek did in that very department.
This is from Trian's materials:

  • Prices have gone up in the Parks even as investment has been deferred. Disney’s parks have long been a crown jewel of the Company and remain an important part of its future. But even though admission prices have increased by more than 35% over the last ten years,12 Disney recently revealed the need to invest a whopping $60 billion into its parks and cruise lines over the next ten years, seemingly to catch up for delayed or deferred investment.13 Disney has failed to answer how it plans to compete with Universal’s new attractions, why it has not kept pace with development, how and where this money will be spent, or what returns shareholders can expect to earn on this massive investment.
Later, he says he would, among other things:

  • Press management to disclose the expected returns on the $60 billion of announced investments in the Parks and Experiences business;
He has complained about admission prices increasing by more than 35%, so I don't see how you could then turn around and raise the prices even more. If we are to take him at his word (which I would imagine we would have to give him at least some benefit of the doubt, as he's making these statements as part of his run for a board seat of a publicly traded company), he merely wants positive ROI on the $60bn of announced capex.

He fully understands the need to compete with Universal and their rapidly expanding offerings. He mentions them by name. He's been around long enough to know that takes money, and a lot of it.
 

monothingie

Evil will always triumph, because good is dumb.
Premium Member
The idea that all “change” is good is shockingly naive. This is an example of that overwhelming modern American bias that things can’t get worse. There is massive evidence that Peltz will make things substantially worse.
The screechings of a small group of loud people have nothing to do with the general investor sentiment in Disney. Underperform ratings by analysts don't have emotions. Simply saying the other guy will just make it worse, when current cadre of suits is doing just a good of a job to screw it up is not a valid excuse.
 
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lazyboy97o

Well-Known Member
Him and Rasulo would still be massively outnumbered on the board and Im sure ignored for a large part but things are bad now and I am sick of this Iger picked board walking to his beat of Iger's drum.
How does introducing a worse influence somehow turn things around? Is the board going to somehow be so shocked by their positions that they change and do the opposite? Rasulo was one of Iger’s bad decisions, why keep that going?
 

Casper Gutman

Well-Known Member
You can also drive revenue with increased attendance. The problem is they have failed to build out the parks and surrounding infrastructure in a way that can handle more guests satisfactorily.

That is a complete lack of vision and strategic failure that falls squarely on Bob Iger.

They have pushed ever other lever to far and it’s starting to push back.

The level of investment needed to correct this is astronomical and we still have a black hole called D+ consuming capitol.

Something drastic needs to change and Bob Iger not going to be the one to make it happen.
If Disney had not jumped head first into streaming Wall Street would have absolutely slaughtered them.

And the idea that Peltz will expand the parks is absolutely, certifiably insane.
 

Brian

Well-Known Member
I don't think comparing it to Tokyo is realistic - in a world where Parks gets sold off, Disney itself is a very different company and may not have the same incentive to suppoor the parks with its branding / IP.
They would if the studio business, or whichever company holds the IP rights, gets royalties from the theme park ownership company.
 

lazyboy97o

Well-Known Member
If the parks are broken off from Disney they will almost certainly decline at a rate which we can’t even imagine. They are NOT going to be managed by a company like OLC - Tokyo Disney is the product of a very, very different business and political culture. Imagining that type of management for WDW is pure fantasy.
Even if the OLC Group themselves bought the parks, people assume they’d 1) agree to an extension of the same deal they signed nearly 50 years ago in the late 70s, and 2) would not recognize that other countries are not Japan and would not operate different parks in different locations differently.
 

Notes from Neverland

Well-Known Member
Peltz and his track record show exactly how he would run Disney if allowed. Slash costs for shareholder value. I'm not sure why anyone would expect him to have a sudden reversal in strategy with Disney and not just do what he has always done when involved in a company. His deals never "work out as planned" and end up with the company in worse shape.
 

Brian

Well-Known Member
And the idea that Peltz will expand the parks is absolutely, certifiably insane.
  • Prices have gone up in the Parks even as investment has been deferred. Disney’s parks have long been a crown jewel of the Company and remain an important part of its future. But even though admission prices have increased by more than 35% over the last ten years,12 Disney recently revealed the need to invest a whopping $60 billion into its parks and cruise lines over the next ten years, seemingly to catch up for delayed or deferred investment.13 Disney has failed to answer how it plans to compete with Universal’s new attractions, why it has not kept pace with development, how and where this money will be spent, or what returns shareholders can expect to earn on this massive investment.
These are Trian's own words. How are we to read this statement and say that he would never expand the parks? What would the $60 billion go towards? If anything, he's saying they are behind on expansion and panning them for that.

You so confidently say that people advocating for Peltz are blinded by politics, but it would seem you are the blind one by ignoring his own words directly contradicting your claim.
 

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