Iger's return getting extended?

[bryaalre]

Ummm, no Disney is not losing money like crazy. They are actually profitable. Finding money to buy Hulu isn't a problem for a company of that size - if they even decide they want to buy Hulu.

At the start of next year, more likely than not they will be forces to purchase Comcast's 1/3 stake in Hulu. The only thing that we don't know for sure will be the price but the minimum will be $9B.

 

[RivShore]

At the start of next year, more likely than not they will be forces to purchase Comcast's 1/3 stake in Hulu. The only thing that we don't know for sure will be the price but the minimum will be $9B.

That is correct but I think what OKW was thinking was that Disney could to something else with it - take control and sell it immediatly, entice Comcast to take control of it, or something more creative (like joining it up in some way with all the legacy media streamers - Peacock, Paramont+, Max, etc.). There are options that might not mean $9B going out the door.

And really this is yet another thing on Iger's plate. How does he get it all done by the expiration date? Fix the studios, deal with the FL lawsuits, fix streaming, absorb Hulu, find and train a CEO, find a CFO, etc!! And I probably missed a few major things.

 

[Brian Noble]

I very much doubt they will spin off ESPN. Live sports is the last frontier in must-watch-live television, which means "must watch the ads in real time". Linear/ad-supported is still more profitable than streaming, and probably will be for some time.

 

[Disney Bobby]

Sounds like another big golden parachute setup. Extend his contract, and then fire him a year from now and how to pay him for years to come. Didn't they extend Chapek not long before they fired him?

 

[wabbott]

Sounds like another big golden parachute setup. Extend his contract, and then fire him a year from now and how to pay him for years to come. Didn't they extend Chapek not long before they fired him?

That is correct.

 

[Jwaire]

Finding money to buy Hulu isn't a problem for a company of that size - if they even decide they want to buy Hulu.

Can they find the money? Yeah, but it comes at a cost to every division Disney has including primarily the park division.

Either Disney is a direct-to-consumer company or they're not. Iger has some tough decisions to make. Forget being a consultant, Wall Street wants Iger to commit to at least 5 years and I expect the board will offer that by the end of the year.

My completely ludicrous predictions:

1. Iger agrees to an extra 3 years on top of his 2. So, 5 total.
2. Iger makes a last minute deal with Comcast to delay the buyout of Hulu for 24-36 months.
3. Disney announces that they're returning to the traditional theatrical window for their releases for most titles including Star Wars and Marvel. Disney+ streaming will occur at the old premium cable window (same as HBO, Showtime, etc.).
4. Internally, budgets are scaled back. Pixar moves to a one film per year strategy and Pete Doctor is forced out. Brad Bird or Andrew Stanton become Pixar CCO. Kathleen Kennedy decides to retire. Jennifer Lee gets a promotion.
5. Iger starts to sell off assets (undeveloped real estate, Fox's back library, possibly even ESPN, etc.) to "slim" the company, but in reality it's purely for the cash.
6. Josh D'Amaro gets a promotion, but doesn't get the President slot and remains in charge of parks. Maybe he gets to moonlight with Alan Bergman at Studios or they move him somewhere wild like ABC. Ken Potrock gets a promotion to D'Amaro's old job, but doesn't get the title.
7. New CFO comes from outside the company, but former Disney employee.
8. Disney acquires Candle Media, Tom Staggs will return, but not Kevin Meyer.
9. Iger leaves the company after 5 years with Staggs as CEO and D'Amaro waiting in the wings as President.

 

[OKW Lover]

Can they find the money? Yeah, but it comes at a cost to every division Disney has including primarily the park division.

Wouldn't the money come from the ongoing operations of Hulu? Disney would be earning 100% of the profits. Presumably the acquisition wouldn't be made if they didn't think they would make money on it.

 

[Jwaire]

Wouldn't the money come from the ongoing operations of Hulu? Disney would be earning 100% of the profits. Presumably the acquisition wouldn't be made if they didn't think they would make money on it.

Last I saw, the DTC division had lost over a half a billion in the last quarter. Did I miss something?

They may be forced to buy it. They made a deal with Comcast back in 2019. It's up to Comcast whether or not they have to purchase it early next year. Comcast's CEO has made hints to financial outlets that they intend to force the sale.

Also, read today that Disney+ has now dropped to #4 behind Amazon, Netflix, Max (formerly HBO Max).

 

[RivShore]

Also, read today that Disney+ has now dropped to #4 behind Amazon, Netflix, Max (formerly HBO Max).

On what metric?

Last I saw, the DTC division had lost over a half a billion in the last quarter. Did I miss something?

Hulu itself, at least pre-Disney+, was profitable so it would be contributing little if anything to the overall DTC losses.

 

[superme80]

I hope not. I can't stand him!

 

[Elijah Abrams]

5. Iger starts to sell off assets (undeveloped real estate, Fox's back library, possibly even ESPN, etc.) to "slim" the company, but in reality it's purely for the cash.

What do you mean by "Fox's back library"? I assume it's everything but Star Wars, X-Men, Deadpool, Fantastic 4, and (possibly) Avatar.

 

[Jwaire]

On what metric?

The numbers were released by Just Watch, so I'm assuming marketshare (number of streams/people using service).

What do you mean by "Fox's back library"? I assume it's everything but Star Wars, X-Men, Deadpool, Fantastic 4, and (possibly) Avatar.

Yeah, Disney now owns a bunch of random things like the 60's Batman movie, MASH, Alien, Predator, The Rocky Horror Picture Show, etc. Maybe they start selling things that are "off brand."

 

[Cfabar1]

I wonder if Iger just convinces the board to merge with or buy Comcast…. That could be his ultimate deal and would resolve the Hulu situation…. Then he could go off and parade into the sunset and leave someone else to deal with the major problems that would ensue….

Doubt such a deal could get through the current DOJ/Antitrust, but who knows….

 

[Elijah Abrams]

I wonder if Iger just convinces the board to merge with or buy Comcast…. That could be his ultimate deal and would resolve the Hulu situation…. Then he could go off and parade into the sunset and leave someone else to deal with the major problems that would ensue….

Doubt such a deal could get through the current DOJ/Antitrust, but who knows….

I doubt there would be a Disney/Comcast merger. We'd end up with a massive monopoly, and that wouldn't be good at all.

 

[irlandaise]

I doubt there would be a Disney/Comcast merger. We'd end up with a massive monopoly, and that wouldn't be good at all.

Yikes, yeah, just in films alone, having Disney and Universal under the same roof would mean one company controlling nearly half the movie market share in the U.S.

 

[wabbott]

NBC & ABC owned by the same company? Won't happen.

 

[BrianL]

NBC & ABC owned by the same company? Won't happen.

They actually won't allow that. That's why Disney didn't get Fox Broadcasting in the buy - it had to be off the table.

 

[wabbott]

They actually won't allow that. That's why Disney didn't get Fox Broadcasting in the buy - it had to be off the table.

Besides, DIS would be drowning in debt with such a deal. As it is now, we're treading water. Think what kind of pressure that would be on the parks. They'd start charging for water, and install pay toilets.

 

[RivShore]

I wonder if Iger just convinces the board to merge with or buy Comcast…. That could be his ultimate deal and would resolve the Hulu situation…. Then he could go off and parade into the sunset and leave someone else to deal with the major problems that would ensue….

Doubt such a deal could get through the current DOJ/Antitrust, but who knows….

Regulatory issues will prevent it from even being discussed.

But it would be back to the future:

Comcast offers to buy Disney for $66B​

The cable telecom company sees the merger as a way to get quick access to content​

https://www.computerworld.com/article/2574808/comcast-offers-to-buy-disney-for--66b.html

Comcast Withdraws Its Proposal to Merge With Disney​

04/28/04
https://www.cmcsa.com/news-releases/news-release-details/comcast-withdraws-its-proposal-merge-disney

 

[PolymerSkywalker]

Iger is definitely not leaving soon with him just firing two high levels executives on his staff. Looks to me like he plans to stick around a few more years to try and turn this mess around.