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- Written by Mariko Oi
- business reporter
image source, Getty Images
Disney CEO Bob Iger announced a series of moves he hopes will deliver “significant growth” to the entertainment giant.
The plan includes streaming an exclusive version of Taylor Swift’s Ellas Tour concert film on Disney+.
The company will also invest $1.5bn (£1.2bn) in Epic Games, the maker of the hugely popular video game Fortnite.
Disney is under pressure from activist investor Nelson Peltz, who wants to restructure the company.
The US billionaire wants Disney to not only improve the box office performance of its films but also increase profits from its streaming business. Last year, many Disney films, including the Marvel series, failed to make a dent in the global box office.
Disney announced in its financial results for the three months ended Dec. 31 that its streaming service lost 1.3 million subscribers due to price hikes in October.
However, Disney still expects its streaming business to reach profitability by September of this year.
The deal with Epic will allow gamers to interact with characters from Disney, Pixar, Marvel, Star Wars, and Avatar.
“This is Disney’s largest ever entry into the gaming world, and a huge opportunity for growth and expansion,” said Iger.
Together, the three major U.S. media companies own rights to a wide range of sports, including the FIFA World Cup, Formula 1, the National Football League, the National Basketball Association, and Major League Baseball.
Mr. Iger also announced plans to buy back $3 billion worth of stock from investors. Disney reported flat revenue at $23.5 billion, but pretax profit rose to $2.8 billion from $1.7 billion a year earlier.
Asked if this announcement would be enough to satisfy Peltz, who wants a seat on Disney’s board, Iger told CNBC, “What we need most right now is giving activists their time and energy.” “It’s distracting in terms of things,” he said. Or, frankly, activists who have completely different agendas and who don’t understand our company, its assets, or even the true nature of the Disney brand. ”
But a spokesperson for Mr. Peltz’s Trian Fund Management company said: “It’s deja vu all over again. We saw the movie last year and didn’t like the ending.”
Disney shares rose more than 6% in after-hours trading in New York after the announcement.
He was recalled as the company’s stock price plummeted and Disney+ continued to lose money.
Separately, Disney faces a lawsuit from actress Gina Carano, who was fired in 2021 over a social media post comparing being a Republican to being Jewish during the Holocaust. There is.
The lawsuit was sponsored by Elon Musk, who publicly invited others to join the lawsuit on his platform X (formerly known as Twitter).
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