The calm after the storm

Disney has had a busy few weeks, as shareholders shot down activist investor Nelson Peltz’s effort to take board seats — re-electing Bob Iger and the 11 other company-backed members by a “substantial margin”, thus ending the most expensive proxy battle of its kind in history.

Hedge fund Trian Capital pointed to Disney’s costly Fox acquisition, faltering movie output, unprofitable streaming business, and bungled succession plans as evidence that shareholders might be better served with a board switch-up. As well as “right-sizing” its legacy media business, the agitators wanted “Netflix-like” streaming profit margins and more tangible targets for the $60 billion that Disney is still planning to invest in its parks business over the coming decade.

That level of commitment to its parks was certainly not guaranteed in the depths of the pandemic, when travel restrictions shuttered Disneylands around the world. But the division has since bounced back to become the company’s most profitable. Indeed, despite only accounting for 39% of revenue in Q1 2024, the “experiences” segment was the company’s profit engine, delivering 80% of total operating profit.

DisneyStoryLiving+

Disney has long been in the business of entertaining people, but it’s also looking at satisfying more basic needs. One such intriguing iron in the fire is its Succession-lite Living+ alternative — a slated “Disney town” in California called Cotino, where permanent residents will be able to blissfully revel in all things Mickey and Marvel.