Bob Iger Returns/Disney CEO Thread (2022)

[MrBlonde]

I definitely predicted the coronavirus concerns on the company at the time and I was certainly not the only one speculating that had to be the “why now?” and “why so abruptly?”

This was February 25, 2020, the same day he stepped down. COVID had already made its way to the US.

Sorry to dredge up old comments, but my best guess for Iger's swift exit in 2020 was he foresaw significant impacts to earnings across the business lines and most likely his compensation was tied to the stock price. If you knew your earning potential could be halved due to a virus, why not leave and lock in the gains from an impressive run?

You answered your question when you mentioned it's a growth tech stock, with a PE of 50+. That's the special treatment that has permitted them to survive, and continually refinance, using inflated stock.

Completely agree. The model for tech companies who are disrupting an existing business model has been to get funded and be subsidized by investors until they grow and dominate said business model and then they'll get to virtually dictate terms and profit in a near monopoly once the legacy companies are defeated. That's why as cord cutting accelerates, Netflix is putting hammer down on account sharing, soon to be followed by Disney+.

Disney has been designed basically as a circuit of content, where studios make movies, that move merch, that get spin-off TV shows, which have ads for the next movie, and the parks having all of it trickle into it. Disney+ is a semi-replacement for the TV spoke of the wheel, but now they, as all the other companies quickly realized, that it's not as profitable as the traditional model.

 

[Mad Dog]

Sorry to dredge up old comments, but my best guess for Iger's swift exit in 2020 was he foresaw significant impacts to earnings across the business lines and most likely his compensation was tied to the stock price. If you knew your earning potential could be halved due to a virus, why not leave and lock in the gains from an impressive run?


Completely agree. The model for tech companies who are disrupting an existing business model has been to get funded and be subsidized by investors until they grow and dominate said business model and then they'll get to virtually dictate terms and profit in a near monopoly once the legacy companies are defeated. That's why as cord cutting accelerates, Netflix is putting hammer down on account sharing, soon to be follow by Disney+.

Disney has been designed basically as a circuit of content, where studios make movies, that move merch, that get spin-off TV shows, which have ads for the next movie, and the parks having all of it trickle into it. Disney+ is a semi-replacement for the TV spoke of the wheel, but now they, as all the other companies quickly realized, that it's not as profitable as the traditional model.

Perfect explanation!!!.....and, by the way....it's looking like the busier Septembers trend of the past six years are ending. WDW looks very slow, per Touring Plans numbers. Also, the Halloween party dates are selling out slower than the past few years. October will be interesting as to whether it will continue that real busy trend that started in 2017.

 

[tielo]

I think Universal's streaming business is quite smart.
Give a movie ample time in the theater and add VOD or Digital sale at the end tail. Then 3 months exclusive on Peacock and during that run release physical media. And after that the highest bidder (mostly Netflix) can hire the content for it's service for a certain amount of time. After a certain amount of time cable tv will be a contender.
Sure their streaming platform will never be huge but they are all excellent revenue streams.
The problem is Disney wants it all, they want all the money for themselves but that is a very shortsighted business case that never served them well.

 

[Michael S]

Disney Fielding Interest In ABC And Other Linear TV Assets From Byron Allen And Nexstar; Media Giant Calls Reports Of Sale Talks “Unfounded,” But Will Consider “Strategic Options” – Update

Disney is pushing back on reports that the company is talking with Nexstar Media Group about a potential sale of ABC and its eight local ABC stations.

deadline.com

Byron Allen Makes a $10 Billion Bid for ABC and Disney’s Other TV Networks

The offer would include ABC, cable channels FX, Nat Geo, and other regional TV networks, which Bob Iger indicated he would be willing to sell.

www.indiewire.com

 

[TheUniC6]

Disney Fielding Interest In ABC And Other Linear TV Assets From Byron Allen And Nexstar; Media Giant Calls Reports Of Sale Talks “Unfounded,” But Will Consider “Strategic Options” – Update

Disney is pushing back on reports that the company is talking with Nexstar Media Group about a potential sale of ABC and its eight local ABC stations.

deadline.com

Byron Allen Makes a $10 Billion Bid for ABC and Disney’s Other TV Networks

The offer would include ABC, cable channels FX, Nat Geo, and other regional TV networks, which Bob Iger indicated he would be willing to sell.

www.indiewire.com

I wonder how long it will be before Disney's television networks get sold off. It sounds like the wheels are moving.

 

[GA-MBIT]

Shoutout to the temporary Nat Geo store that opened up in Disney Springs for a few months last year, cause that's never happening again lol.

 

[Grabnar]

Shoutout to the temporary Nat Geo store that opened up in Disney Springs for a few months last year, cause that's never happening again lol.

All that stuff is at the Disney Character Warehouse at least as of yesterday lol

 

[Doug A.]

Interesting timing considering how much Disney has to shell out for Hulu

 

[GA-MBIT]

I'm listening through DisneyWar now (great read!), and I personally cannot wait for the spiritual successor book to drop detailing Iger and Chapek's turn at the company, if it'd even be allowed to exist haha!

 

[HORRORable Commenter]

I'm listening through DisneyWar now (great read!), and I personally cannot wait for the spiritual successor book to drop detailing Iger and Chapek's turn at the company, if it'd even be allowed to exist haha!

It's all I think about, and knowing that Stewart still writes fills me with glee. Imagine if the story was framed beginning with the Elton john rumor lol

 

[rageofthegods]

If you guys liked DisneyWar you should check out Unscripted, the book he and Rachel Abrams did on Paramount and their insane ruling family. That book borders on Gothic Horror.

 

[DK745]

Bob Iger Found Disney in ‘Worse Shape’ Than He Expected, Now ‘Overwhelmed and Exhausted’ Bloomberg Reports

 

[Grabnar]

Bob Iger Found Disney in ‘Worse Shape’ Than He Expected, Now ‘Overwhelmed and Exhausted’ Bloomberg Reports

 

[Jerroddragon]

Most of the "worst" are from Iger as well

The Money issue and App are on him and wonder if Iger could go back in time if he had done things differently knowing he would have to clean up these messes and not just hand them off to someone else.

While for me it's easy to dislike like these over paid CEO's, I do hope Iger cuts back on the amount of content and make sure each show or movies is great or amazing. No more "its fine" and just have series that come out and people will watch week to week and movies that have good word of mouth

Theme park wise, I think the parks need years to get back to where fans want and with the cost of things I feel like they won't be as packed as they could be for a while unless they have more promotions like the 50 dollar child tickets

 

[rageofthegods]

Trash talks and then pushes out his handpicked successor after regretting his appointment and then immediately regrets returning anyway. It's the stuff of Shakespeare. Anaheim's own King Lear.

 

[Grabnar]

Trash talks and then pushes out his handpicked successor after regretting his appointment and then immediately regrets returning anyway. It's the stuff of Shakespeare. Anaheim's own King Lear.

I would 110% watch an adaptation of Disney War continued through the Chapek years in the style of Shakespeare. It would be some S-tier off-broadway theater.

 

[Mad Dog]

Disney has problems, and they are many. ....Their theme parks are carrying the entire company on their shoulders. And they're even weaker than they ought to be. .....................Years of bad decisions are starting to catch up....They really need to sell off some of the weaker parts, most of which don't have much long term potential.

 

[Viator]

Bob Iger Found Disney in ‘Worse Shape’ Than He Expected, Now ‘Overwhelmed and Exhausted’ Bloomberg Reports

The fact Disney would dig their grave further with EA is funny.

 

[TheUniC6]

Disney has problems, and they are many. ....Their theme parks are carrying the entire company on their shoulders. And they're even weaker than they ought to be. .....................Years of bad decisions are starting to catch up....They really need to sell off some of the weaker parts, most of which don't have much long term potential.

That would be ABC and ESPN, the latter of which is a radioactive deadweight. But I wonder when the timeline for actually making these sales would. Maybe at some point in 2024?

 

[tielo]

Bob Iger Found Disney in ‘Worse Shape’ Than He Expected, Now ‘Overwhelmed and Exhausted’ Bloomberg Reports

"It's funny how some distance, makes everything seem small."

The fact Disney would dig their grave further with EA is funny.

I don't think Disney has EA money and zero knowhow about game development. It would be financial suicide.