Disney Headlines for February 21st, 2024
Let’s say that you give me $3,000 to invest, and a month later, I hand you back $3,500. You’d be pretty happy, right?
That’s basically what Bob Iger has done for Nelson Peltz lately, albeit on a grander scale.
Peltz bragged at the start of the year that he controlled $3 billion in Disney stock.
Photo: restorethemagic.com
Iger has turned that investment into $3.5 billion in a matter of weeks, causing Variety to raise a fair question.
This week’s Disney Headline is, “Why is Peltz still unhappy?” Oh, and we’ll touch on Disney’s emerging tech stories a bit, too.
What’s Half a Billion Among Frenemies?
Romain Maurice/Getty Images for Carbone Beach | Dia Dipasupil/Getty Images
Here’s the actual Headline from Variety this past weekend:
“Trian Disney Shares Have Gained $500 Million in Value So Far This Month. Why Is Activist Investor Nelson Peltz Still Unhappy?”
Those of you reading MickeyBlog already know the two primary answers to this question, but let’s quickly take another swing.
(Photo by Lisa Kyle/Bloomberg via Getty Images)
Answer number one is because this has never really been about the money. It’s about power and control.
As we’ve advanced deeper into the second annual Peltz Pushes for a Disney Board Seat battle, the billionaire has dropped the façade.
Now, Peltz is privately admitting, as are the people interacting with him, that this whole thing is about Iger’s successor.
(Photo by Kevin Lorenzi/Bloomberg via Getty Images)
Peltz and his friend, Isaac Perlmutter, don’t like Iger personally and cannot stand his politics.
The two billionaires are currently trying to overpower Disney via financial machinations to force their way into a better position.
Their endgame is getting two of the 15 votes when the time comes to choose a successor as Disney CEO.
Source: AP
The rich, influential men believe they can cajole, manipulate, and buy their way into persuading six other Board members to vote with them.
In that scenario, they choose who leads Disney for the next decade.
(Charley Gallay / Getty Images for Disney)
Based on what you’ve witnessed over the past year, you can probably tell that you won’t like that candidate.
But that’s only part of the story here. The other answer is more straightforward.
Nelson Peltz is wealthy beyond most people’s wildest dreams. For this reason, he doesn’t lose much.
Loss Leader
Photo: skillastics.com
Also, we should calibrate our definition on what a loss is in this example.
As I said at the start, Peltz has earned $500 million and counting during this latest tiff with Iger.
A normal person would call that a massive win. For Peltz, it signifies a greater embarrassment, though.
Nelson Peltz
For the second straight year, Peltz has demanded something from Iger.
Last year, Iger returned to Disney, discovered the company’s perilous position, and took steps to thwart Peltz.
Photographer: Patrick T. Fallon/Bloomberg via Getty Images
For whatever reason, Peltz decided that Iger was more vulnerable this time, which frankly demonstrates the billionaire’s poor grasp of the situation.
Iger spent his first 12 months securing Disney’s fortress. Now, he’s entered the “fun phase” of rebuilding and buying.
Photo: DIsney+
That’s the phase when CEOs generate splashy Headlines by doing fun stuff like starting a Fortnite-adjacent digital realm and upending streaming sports.
If anything, Peltz cornered Iger in a vulnerable position a year ago. Disney’s CEO is stronger now.
Ike Permutter. Photo: AP
Also, we shouldn’t lose sight of the fact that Bob Iger apparently has one heretofore unknown special skill.
The dude can absolutely wreck Nelson Peltz and Isaac Perlmutter.
Past a certain point, Iger got too old to pretend around these pushy billionaires. Now, he’s more open with his contempt.
Photo: Natacha Rafalski on Instagram
Disney’s CEO went on CNBC during a live broadcast and flatly stated he wouldn’t be talking to Peltz again. They’re on a break.
As a parting gift, Iger has been kind enough to make Peltz $500 million richer.
Photo: REUTERS/Mike Blake
Somehow, that’s coming across as salt in the wound, though.
Iger is beating Peltz at his own game: money.
The Last-Ditch Effort
Comcast
CNBC’s corporate owner is NBCUniversal, whose corporate owner is Comcast. As you know, Comcast and Disney are enemies.
I mention this because CNBC has done everything it can to put its thumb on the scale in favor of Peltz this year.
They’ve had the billionaire on their channel multiple times to pitch his case to the rich investors who watch the network.
Photo:cnet.com
Also, we had this recent interview, which irritated me to no end.
That’s Carolyn Everson, a member of Disney’s Board of Directors, discussing her love of the company and satisfaction with Iger.
Photo: CNBC
The “reporter” proceeds to point out a rude, not-at-all subtle caricature that Peltz’s team had drawn of Disney’s Board.
This CNBC on-air talent asked Everson to comment on a picture that drew her rudely…and the reporter was laughing at it while she asked.
Everson politely overlooked the appalling lack of manners and provided a tremendous response.
At its core, Peltz’s “spaghetti” accusation is him saying, “No fair! Only I was supposed to get publicity for my side of the story!”
Everson confidently points out that Iger has identified Disney’s priorities and taken specific steps to address each one.
Creator: Mike Blake|Credit: REUTERS
And the fact that Iger is doing this is making Peltz mad. That statement alone answers Variety’s question.
Peltz isn’t in this battle to make Disney better. He’s only in this for his self-interest. And it’s going poorly.
Disney’s Tech Headlines
Photo: THIERRY CHESNOT/GETTY IMAGES
Since Disney announced its two major projects, Sports Hulu and Disney-Fortnite, the stock has soared in value.
Even during a market downturn, Disney has held better than I had frankly expected.
However, over the past ten days, I’ve noticed substantially more pushback regarding the Sports Hulu venture.
Photo: Disney
For this reason, I’m convinced that the stock spike stems from that Epic Games ownership stake.
Disney has finally thrown down its digital stake and claimed the land. And it picked an excellent partner in Fortnite.
Everson even touches on that fact in a humanizing way during her CNBC interview.
Disney is launching a gaming universe that will connect with Fortnite. Photo: Epic Games
She mentions that she is, like me, a Gen X member.
Her kids are Gen Z, which means that they’re statistically twice as likely to be gamers.
Gen Z doesn’t love movies the way Disney needs from this generation. So, it’s moving to where the customers are rather than trying to lure them.
Photo: Apple
Disney has also joined the Apple Vision Pro venture, but Apple is doing most of the heavy lifting there.
In both instances, Disney is licensing more than anything else, which has proven smart.
In case you haven’t heard, Apple Vision Pro pushback has started, and the complaints are numerous and worrisome.
Photo: EPIC Games
This tech isn’t ready yet, but the Epic Games deal allows Disney to wait a few more cycles.
People can play Fortnite right now. Some of the upcoming Disney tie-ins can occur quickly since they’ll be digital skins and the like.
Disney has sagely covered its bases by planning for the now AND allowing for the possible future Apple CEO Tim Cook desires.
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