Will Iger Make a Deal at Billionaire Summer Camp?
The Walt Disney Company continues to persevere through one of the strangest five-year periods in its history.
Since COVID-19 forced the closure of Disney’s Chinese theme parks in January 2020, Murphy’s Law has been in full effect.
![The Walt Disney Company](https://mickeyblog.com/wp-content/uploads/2024/04/2024-walt-disney-company-stock-photos3.jpeg)
![The Walt Disney Company](https://mickeyblog.com/wp-content/uploads/2024/04/2024-walt-disney-company-stock-photos3.jpeg)
Photo: Disney
Even when Disney wins big, it somehow loses. As proof, Inside Out 2 may have become Pixar’s biggest blockbuster ever by the time you read this.
So, when Disney reports quarterly earnings on August 6th, the Disney Entertainment division should perform shockingly well.
![The emotions discover the Puberty button in Inside Out 2.](https://mickeyblog.com/wp-content/uploads/2024/06/insideout2pubertybutton-scaled.jpeg)
![The emotions discover the Puberty button in Inside Out 2.](https://mickeyblog.com/wp-content/uploads/2024/06/insideout2pubertybutton-scaled.jpeg)
Image: Pixar
How has that impacted Disney stock? Not positively. As I type this, the stock has dropped $4 since Inside Out 2’s release date.
This statement underscores how few investors understand the Disney flywheel. But it also causes problems for CEO Bob Iger.
![Bob Iger 2023 Shareholder Meeting](https://mickeyblog.com/wp-content/uploads/2024/04/bob-iger-2023-shareholder-scaled.jpeg)
![Bob Iger 2023 Shareholder Meeting](https://mickeyblog.com/wp-content/uploads/2024/04/bob-iger-2023-shareholder-scaled.jpeg)
Bob Iger – 2023 Annual Shareholder Meeting
Disney’s leader may be forced to do something dramatic, and it could happen soon.
Will Iger make a deal this week? Here’s why he might.
The Looming Threat to Disney
There are three things I would really rather not discuss these days when I write about Disney: Nelson Peltz, Isaac Perlmutter, and Cricket.
I don’t understand the sport of Cricket at all, but it comes up due to the epic ratings on the Disney+ Hotstar service.
![Hotstar](https://mickeyblog.com/wp-content/uploads/2022/06/disney-plus-hotstar.jpg)
![Hotstar](https://mickeyblog.com/wp-content/uploads/2022/06/disney-plus-hotstar.jpg)
Photo:amplitude.com
Just a few days ago, a Cricket livestream claimed the third-highest number of concurrent viewers ever.
I can add nothing contextually about this data, but it’s pretty cool.
![Cricket](https://mickeyblog.com/wp-content/uploads/2022/06/960x0.jpg)
![Cricket](https://mickeyblog.com/wp-content/uploads/2022/06/960x0.jpg)
Photo: Forbes
As for Peltz and Perlmutter, they’re the predators in the woods, hoping that Disney will falter long enough for them to pounce.
Peltz just tried to take two seats on Disney’s Board of Directors, thereby suffering a humiliating defeat in the process.
![Pelz](https://mickeyblog.com/wp-content/uploads/2023/01/Nelson-Peltz-4.jpg)
![Pelz](https://mickeyblog.com/wp-content/uploads/2023/01/Nelson-Peltz-4.jpg)
Photo: restorethemagic.com
However, the activist investor achieved his true goal in making $1 billion in the process. Peltz sold his entire Disney stake.
At the time, he hinted that he would buy back in if Disney stock got cheaper…and it has.
![Nelson Peltz](https://mickeyblog.com/wp-content/uploads/2023/01/Nelson-Peltz-3.jpg)
![Nelson Peltz](https://mickeyblog.com/wp-content/uploads/2023/01/Nelson-Peltz-3.jpg)
Nelson Peltz
Earlier in 2024, Disney was the top-performing stock on the NASDAQ. Since then, it’s fallen more than 20 percent.
That’s to be expected in that the run on the stock price partially stemmed from the activist investor battle.
![The Walt Disney Company](https://mickeyblog.com/wp-content/uploads/2024/04/2024-walt-disney-company-stock-photos4.jpeg)
![The Walt Disney Company](https://mickeyblog.com/wp-content/uploads/2024/04/2024-walt-disney-company-stock-photos4.jpeg)
Photo: Disney
Once Peltz lost that fight, investors performed profit-taking by selling their stock. Peltz benefitted as much as anyone.
So, the billionaire would enjoy nothing more than doing the whole thing again at the end of 2024.
![](https://mickeyblog.com/wp-content/uploads/2024/04/2024-walt-disney-company-stock-photos2.jpeg)
![](https://mickeyblog.com/wp-content/uploads/2024/04/2024-walt-disney-company-stock-photos2.jpeg)
Photo: Disney
If you could make $1 billion annually by infuriating someone you didn’t like, you’d do it, too.
And that’s the problem Iger faces. He just embarrassed a billionaire in a Board battle.
![Bob Iger 2024 Shareholder Meeting](https://mickeyblog.com/wp-content/uploads/2024/04/bob-iger-2024-shareholder-meeting-e1712695725310.jpeg)
![Bob Iger 2024 Shareholder Meeting](https://mickeyblog.com/wp-content/uploads/2024/04/bob-iger-2024-shareholder-meeting-e1712695725310.jpeg)
Bob Iger – 2024 Annual Shareholder Meeting
Those folks have long memories and hold grudges. If you don’t believe me, remember that 2024 was Iger vs. Peltz II.
Peltz spent a year stewing and plotting after Iger beat him the first time.
Why Iger is Feeling the Pressure
What’s the point to all of this? Iger cannot have Disney stock remain undervalued for an extended period.
Right now, it is, and that’s despite the fact that companies like J.P. Morgan have listed the stock as a massive buy.
![MyDisney](https://mickeyblog.com/wp-content/uploads/2024/04/Screenshot-2024-04-16-at-16-18-51-MyDisney-Seamless-Login-What-You-Need-to-Know-The-Walt-Disney-Company.png)
![MyDisney](https://mickeyblog.com/wp-content/uploads/2024/04/Screenshot-2024-04-16-at-16-18-51-MyDisney-Seamless-Login-What-You-Need-to-Know-The-Walt-Disney-Company.png)
Photo: Disney
I suspect that the stock will soar in a month when Disney announces earnings, but even that isn’t a given.
Wall Street often sees what it wants to see with major conglomerates.
![The Walt Disney Company](https://mickeyblog.com/wp-content/uploads/2024/04/2024-walt-disney-company-stock-photos1.jpeg)
![The Walt Disney Company](https://mickeyblog.com/wp-content/uploads/2024/04/2024-walt-disney-company-stock-photos1.jpeg)
![The Walt Disney Company](https://mickeyblog.com/wp-content/uploads/2024/04/2024-walt-disney-company-stock-photos1.jpeg)
Photo: Disney
The perception right now is that all streaming services other than Netflix are in the mud.
I fight that perception with facts and data as often as I can, but it seems like this person from The Motley Fool is the only one who gets it.
Investors devoutly believe that streaming services are money losers, and even if Disney reports huge profits, the stock could drop.
I say that because Iger and his CFO, Hugh Johnston, warned investors last time that Direct-to-Consumer (DtC) will drop some this quarter.
While DtC turned a profit last time – and six months ahead of schedule at that – investors have short memories.
![Disney revenue increase](https://mickeyblog.com/wp-content/uploads/2023/08/2023-walt-disney-company-studios-headquarters-burbank-california-stock-5-scaled-e1707074836298.jpg)
![Disney revenue increase](https://mickeyblog.com/wp-content/uploads/2023/08/2023-walt-disney-company-studios-headquarters-burbank-california-stock-5-scaled-e1707074836298.jpg)
The Walt Disney Company
So, any red in the digital division could lead to outcries of, “Ha! I knew it!” At that point, Disney stock could plummet.
We’d all like to think that won’t happen, but this sort of reactionary illogic is the reason why I roll my eyes about Wall Street.
![Disney Board Directors](https://mickeyblog.com/wp-content/uploads/2023/08/2023-walt-disney-company-studios-headquarters-burbank-california-stock-1-scaled.jpg)
![Disney Board Directors](https://mickeyblog.com/wp-content/uploads/2023/08/2023-walt-disney-company-studios-headquarters-burbank-california-stock-1-scaled.jpg)
Credit: Disney
Nonsense happens all the time. In construction terms, Disney’s bones are solid, but buyers don’t like the color of the paint in the living room.
A good real estate agent would remind them that it’s easy to paint a wall, but Wall Street doesn’t work like that.
![](https://mickeyblog.com/wp-content/uploads/2023/08/2023-walt-disney-company-studios-headquarters-burbank-california-stock-2-scaled.jpg)
![](https://mickeyblog.com/wp-content/uploads/2023/08/2023-walt-disney-company-studios-headquarters-burbank-california-stock-2-scaled.jpg)
The Walt Disney Company
So, Iger is under extreme duress to spike Disney’s stock price again. Like my waistline, it’s been spiraling recently.
Why Iger Might Make a Deal This Week
The universe has afforded Iger a rare opportunity this week, though.
Conveniently, the Sun Valley 2024 Summit is about to begin.
Known as “summer camp for billionaires,” this event hosts many of the biggest power brokers in society.
Most eyes will be on Shari Redstone, who just finally agreed to sell Paramount to Skydance Entertainment.
![Shari Redstone](https://mickeyblog.com/wp-content/uploads/2024/07/2024-sun-valley-summit-shari-redstone.png)
![Shari Redstone](https://mickeyblog.com/wp-content/uploads/2024/07/2024-sun-valley-summit-shari-redstone.png)
Photo: Kevork Djansezian/Getty Images
However, the media mogul has more than a month to find a better deal.
So, she will meet with Warner Bros. Discovery CEO David Zaslav, among others, to try to find an even better deal.
![David Zaslov](https://mickeyblog.com/wp-content/uploads/2024/07/2024-sun-valley-summit-david-zaslov-2-1.png)
![David Zaslov](https://mickeyblog.com/wp-content/uploads/2024/07/2024-sun-valley-summit-david-zaslov-2-1.png)
Photo: Kevork Djansezian/Getty Images
As part of this annual event, Hollywood’s elite will interact with Silicon Valley billionaires, and Iger will be in the thick of it.
Last year, Disney’s CEO famously appeared in a live interview with CNBC and, well…spit the bit.
![Bob Iger](https://mickeyblog.com/wp-content/uploads/2024/07/2024-sun-valley-summit-bob-iger-1.png)
![Bob Iger](https://mickeyblog.com/wp-content/uploads/2024/07/2024-sun-valley-summit-bob-iger-1.png)
![Bob Iger](https://mickeyblog.com/wp-content/uploads/2024/07/2024-sun-valley-summit-bob-iger-1.png)
Photo: Kevork Djansezian/Getty Images
Since there isn’t a labor war underway right now – thank the heavens – Iger should be fine here.
In truth, the CEO has seemed more relaxed and confident lately. After being away for a while, it took him a bit to get up to game speed.
![Bob Iger](https://mickeyblog.com/wp-content/uploads/2024/02/iger-view-01-abc-jt-190923_hpMain_4x3t_992.jpg)
![Bob Iger](https://mickeyblog.com/wp-content/uploads/2024/02/iger-view-01-abc-jt-190923_hpMain_4x3t_992.jpg)
Heidi Gutman/Walt Disney Television
Lately, Iger has seemed like the Iger of a decade ago. As he describes it, Disney is out of the repair business.
Now, the company is ready for the building phase, which Iger considers more fun.
![Bob Iger](https://mickeyblog.com/wp-content/uploads/2023/09/75.webp)
![Bob Iger](https://mickeyblog.com/wp-content/uploads/2023/09/75.webp)
(Charley Gallay / Getty Images for Disney)
That’s his way of saying that he’s gotten the finances under control and is exploring ways to expand Disney’s revenue stream.
One such deal was the Epic Games/Fortnite agreement.
![](https://mickeyblog.com/wp-content/uploads/2024/05/2024-Las-Vegas-Licensing-Expo-Epic-Games.png)
![](https://mickeyblog.com/wp-content/uploads/2024/05/2024-Las-Vegas-Licensing-Expo-Epic-Games.png)
Photo: Disney, Epic Games
However, with the heads of several other major conglomerates at the event, Iger could go even bigger.
We’re talking about potential mergers and acquisitions, which are the CEO’s strong suit.
Final Thoughts
While I won’t speculate as to specifics, as the options are too plentiful, the reality here is simple.
Iger could sell some undesirable assets, something he tried last year.
![Bob Iger](https://mickeyblog.com/wp-content/uploads/2024/07/2024-sun-valley-summit-bob-iger-1.png)
![Bob Iger](https://mickeyblog.com/wp-content/uploads/2024/07/2024-sun-valley-summit-bob-iger-1.png)
![Bob Iger](https://mickeyblog.com/wp-content/uploads/2024/07/2024-sun-valley-summit-bob-iger-1.png)
Photo: Kevork Djansezian/Getty Images
Alternatively, Disney could make a surprise bid on something.
We may not even know that any of this happened for weeks or possibly even months, as some deals are slow to develop.
![The Walt Disney Company](https://mickeyblog.com/wp-content/uploads/2024/04/2024-walt-disney-company-stock-photos1.jpeg)
![The Walt Disney Company](https://mickeyblog.com/wp-content/uploads/2024/04/2024-walt-disney-company-stock-photos1.jpeg)
![The Walt Disney Company](https://mickeyblog.com/wp-content/uploads/2024/04/2024-walt-disney-company-stock-photos1.jpeg)
Photo: Disney
Still, Iger is at the billionaire summer camp, and he’s open for business.
So, stay tuned. Huge Disney news could be in the offing.
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