News Walt Disney Company plans to spend $17 billion at Walt Disney World over the next ten years

[Trauma]

She checks the boxes…

They really need two. The creative rot after 20 years of a non-creative at the top shows where it goes.

They need a tandem. Best years were with a tandem.

Whoever it is, it can’t be someone Iger chooses.

He is completely incompetent and has already proven he can’t choose a proper leader.

 

[Tha Realest]

Whoever it is, it can’t be someone Iger chooses.

He is completely incompetent and has already proven he can’t choose a proper leader.

I don’t disagree with you, but the board will choose, and the board was chosen by Iger and is smitten with him. There’s no indication anyone else holds any level of sway over the board.

 

[doctornick]

At the same time the big news was the streaming business losses were down to $660M this quarter so annualized $2.6B. That’s the driver of the stock drops. A year ago they had projected Disney+ would have positive earnings by 2024 and that looks very unlikely at this point. Nothing the parks segment does is going to matter until they figure out the issues with streaming.

Why does that seem unlikely? They are basically one price hike away from around that for D+ (and if it pushes people to the lower priced ad tier, they can make that money from the advertisers). If they have monthly rates in the same range as Netflix or Max, they would be profitable.

Obviously, the bigger issue is to make sure they don't bleed subscriptions by increasing rates, but it's not like they need to be in some crazy range of monthly fee to achieve a profit. Just really on par with other services.

 

[Sirwalterraleigh]

Whoever it is, it can’t be someone Iger chooses.

He is completely incompetent and has already proven he can’t choose a proper leader.

He is…but he Appointed the board. This is Roy’s nightmare

 

[Trauma]

I don’t disagree with you, but the board will choose, and the board was chosen by Iger and is smitten with him. There’s no indication anyone else holds any level of sway over the board.

He is…but he Appointed the board. This is Roy’s nightmare

Nightmare for the fans and the share holders.

 

[JD80]

Ok! If B.I. needs to move on what does the bench look like? How deep is the potential CEO roster? Don't want another "Bob", no offense to all the Bob's out there but if a refresh needs to happen start with name change and give someone else a chance.

If it's another Bob and he's not great you don't need to change any of the memes.

Disney will be doing message boards across the internet a favor.

 

[Sirwalterraleigh]

If it's another Bob and he's not great you don't need to change any of the memes.

Disney will be doing message boards across the internet a favor.

…that’s true…we keep lining em up and mowing em down…

 

[John park hopper]

Calypso bar how low can you go

Disney how low can you go
$88.585USD-1.235-1.37%

 

[Sirwalterraleigh]

Calypso bar how low can you go View attachment 718286


Disney how low can you go
$88.585USD-1.235-1.37%

Strap in…that’s not as low as you think

 

[Vegas Disney Fan]

My feeling‘s always been the next CEO, if internal, would come from the theatrical side. Dana Walden seems to be playing the game better than most. But, we’ll see how well the theatrical slate performs this year. Iger certainly hasn’t anointed anyone fully or implicitly.

I agree, Disney needs a creative at the helm with a strong CFO next to them to handle the financials and keep them in check… I think that creative is going to have to come from outside the company though because they have struggled creatively for a decade. From underperforming movies to big visible boxes in the parks to slapping IPs on everything I don’t think Disney creatives are creative anymore.

 

[Trauma]

…that’s true…we keep lining em up and mowing em down…
View attachment 718284

This is only because of (insert excuse here). Clearly you don’t understand how the market works and that Disney is invincible.

 

[DisneyJayBama]

I'm not confident in anything Disney is doing. Parks are packed? Or is it just Genie+ making it look that way. D+ is in the crapper and Disney in theaters is a laughingstock now. Multiple movies are bombing. I am just reminded of the little dog amongst the fire saying this is fine. I guess the only thing Disney has for it is that it isn't Anheuser-Busch right now.

 

[Bender123]

Companies don’t make long term strategic decisions based on 1 day stock decreases. The stock being down $2 from yesterday is irrelevant to the long term outlook. The cancellation of that project did nothing to move the stock price either way. $1B depreciated over 30 years is $33M a year. The $570M in tax credits over 20 years is $29M a year. So the net P&L impact of that project would have been $4M a year of extra expense for the first 20 years. That’s literally a rounding error for a company the size of TWDC. The stock price isn’t going to react to cancelling a project when it only saves $4M a year.

At the same time the big news was the streaming business losses were down to $660M this quarter so annualized $2.6B. That’s the driver of the stock drops. A year ago they had projected Disney+ would have positive earnings by 2024 and that looks very unlikely at this point. Nothing the parks segment does is going to matter until they figure out the issues with streaming.

From the remarks Josh D’Amaro gave the accelerated depreciation from the Star Cruiser will be $100-$150M so I’m not sure where the $1B number is coming from. Even Disney couldn‘t figure out a way to spend a billion on a 100 room hotel.

Correct, companies dont make decisions based on single days, but when your run to the bottom is now on two years and below half your high, it certainly will.

Disney is in shambles. Marvel is no longer printing money, Star Wars is seen by fans as almost beyond repair, ESPN is a drain on the system and D+ is essentially a product with no reason to exist. The theme parks are really the only ray of sunshine and they have no real counter punch in the pipeline for the new Universal park. In that area, Mario and Potter have shown that they can play the same game as Disney, but faster and at more affordable prices.

You can play accounting tricks all you want, but at some point those outlays of cash need to be paid and income is expected. Are they in danger of bankruptcy? No. Are they in danger of losing their spot on top of the media world? Yes...they might have lost it already.

Iger was bad before, he is bad now. I dont think they have anybody to turn to inside the company, either. They have rot all the way down every division that would need to be cleaned out. Kennedy, Feige, D'Amaro...all of them have overseen, and hired their people into, massive nosedives in consumer sentiment and short term profit gains over long term growth and security. If Iger goes, the rest need to go, as well.

 

[SpectreJordan]

My feeling‘s always been the next CEO, if internal, would come from the theatrical side. Dana Walden seems to be playing the game better than most. But, we’ll see how well the theatrical slate performs this year. Iger certainly hasn’t anointed anyone fully or implicitly.

I won't start counting on the theatrical side performing well again until next year at the earliest. Chapek & COVID severely screwed that side up. The difference in quality between what they were producing in the mid-late 2010s to now is insane. It's the quality gap from the Renaissance era to the '00s by tenfold since it's effecting more than just the main animation studio.

Correct, companies dont make decisions based on single days, but when your run to the bottom is now on two years and below half your high, it certainly will.

Disney is in shambles. Marvel is no longer printing money, Star Wars is seen by fans as almost beyond repair, ESPN is a drain on the system and D+ is essentially a product with no reason to exist. The theme parks are really the only ray of sunshine and they have no real counter punch in the pipeline for the new Universal park. In that area, Mario and Potter have shown that they can play the same game as Disney, but faster and at more affordable prices.

You can play accounting tricks all you want, but at some point those outlays of cash need to be paid and income is expected. Are they in danger of bankruptcy? No. Are they in danger of losing their spot on top of the media world? Yes...they might have lost it already.

Iger was bad before, he is bad now. I dont think they have anybody to turn to inside the company, either. They have rot all the way down every division that would need to be cleaned out. Kennedy, Feige, D'Amaro...all of them have overseen, and hired their people into, massive nosedives in consumer sentiment and short term profit gains over long term growth and security. If Iger goes, the rest need to go, as well.

I feel like Feige is a victim of Disney+ & potentially Chapek. The amount of pointless crap Marvel's produced in the past 3 years is definitely a corporate decision. The announcement of stuff like Agatha, Thunderbolts & Echo in 2021 solidifies that.

It seems like Iger's made them revise their plans & streamline things, there's been a lot of delays from Marvel; I wouldn't be surprised if we get a new lineup of movies announced this year for them.

 

[MagicHappens1971]

I feel like Feige is a victim of Disney+ & potentially Chapek. The amount of pointless crap Marvel's produced in the past 3 years is definitely a corporate decision. The announcement of stuff like Agatha, Thunderbolts & Echo in 2021 solidifies that.

It seems like Iger's made them revise their plans & streamline things, there's been a lot of delays from Marvel; I wouldn't be surprised if we get a new lineup of movies announced this year for them.

I wouldn’t buy so much into this theory. Also the content isn’t “pointless” it’s building into a narrative, just a lot more content than Phase 1 & 2 of the MCU.

 

[GoofGoof]

Correct, companies dont make decisions based on single days, but when your run to the bottom is now on two years and below half your high, it certainly will.

Disney is in shambles. Marvel is no longer printing money, Star Wars is seen by fans as almost beyond repair, ESPN is a drain on the system and D+ is essentially a product with no reason to exist. The theme parks are really the only ray of sunshine and they have no real counter punch in the pipeline for the new Universal park. In that area, Mario and Potter have shown that they can play the same game as Disney, but faster and at more affordable prices.

You can play accounting tricks all you want, but at some point those outlays of cash need to be paid and income is expected. Are they in danger of bankruptcy? No. Are they in danger of losing their spot on top of the media world? Yes...they might have lost it already.

Iger was bad before, he is bad now. I dont think they have anybody to turn to inside the company, either. They have rot all the way down every division that would need to be cleaned out. Kennedy, Feige, D'Amaro...all of them have overseen, and hired their people into, massive nosedives in consumer sentiment and short term profit gains over long term growth and security. If Iger goes, the rest need to go, as well.

None of this has anything to do with the original post I questioned. You said this:

Dropping $1 Billion on that building would cause an investor revolt

I said I don’t think cancelling the Lake Nona project or going forward with it would have any impact on the stock price either way. It’s not accounting tricks. It’s just not that important in the big picture. The building would have been expensed over 30+ years and the tax credits continued for 20 years. That’s just the economics behind the deal.

 

[GoofGoof]

Why does that seem unlikely? They are basically one price hike away from around that for D+ (and if it pushes people to the lower priced ad tier, they can make that money from the advertisers). If they have monthly rates in the same range as Netflix or Max, they would be profitable.

Obviously, the bigger issue is to make sure they don't bleed subscriptions by increasing rates, but it's not like they need to be in some crazy range of monthly fee to achieve a profit. Just really on par with other services.

That’s a valid point on competitors. Disney did just raise prices 38% last year so hard to go too hard on price increases again without fear of sticker shock. To your point if they raised the price a few bucks a month on every subscriber it could wipe out the loss. They need to also be careful with cost cutting. Cutting too much content combined with a price increase could result in lost subscribers. They also need to figure out what to do with Hulu.

If Disney can figure out the streaming business and at least break even that would be very good for the parks. Right now at least a portion of the cash generated from the parks gets used to cover streaming losses.

 

[co10064]

My question is... how in the world was the proposed Lake Nona campus $1 billion?

 

[matt9112]

When doing business in California, the regulatory environment is expected and you build it into your operating plan.

When doing business in Florida, it's not. Add in an unfriendly government that is clearly acting in bad faith, and you can see there's no way to plan it.

You could just say poor business environment. No need to sugar coat it. In any case somehow under the same state government universal is building an entire new park…. So is it really a Florida problem? I suppose you could say Florida is targeting disney but you could also say disney never wants to be a team player. What happened to sun rail or bright line for example? I think both sides of the argument could have been easily avoided.

 

[matt9112]

Ouch…

No…not time to buy…remember they are sinking mostly on their own merits…not the market

And about 50 kooks in Congress look to be ready to sink it because they’re not bright.

Let it ride

If they sink into the $70s…there will be calls for iger’s dismissal. Little boy blue

And it would be a vindication of every Disney fan out there…whether they know it or not. Someday they will.

Don’t they have to somehow figure out how to afford Hulu soon? Isn’t Comcast in a place to deal some serious pain? I don’t think they have liquid for the buy out so I assume some stock will be used as well.
Honestly I think the company’s footing is far weaker than many lead on. But I’m not expert.