CEO Bob Iger: Disney is ‘reinvigorating’ and turbocharging its future

The storyline was one we might have seen in a Disney movie: A crumbling kingdom is in jeapordy as an evil wizard aims to influence the ruling council to let him join and make changes. In the meantime, the current king goes back to his roots to find the power to thwart the attack and expose the wizard as someone who would be harmful to the kingdom. And they all lived happily ever after.

At least we all hope Disney will move forward “happily ever after” after Disney CEO Bob Iger thwarted activitst investor Nelson Peltz from gaining two seats on the Walt Disney Co.’s Board of Directors and push for changes that many believe would have been harmful to the company, considering Peltz has no experience in running or advising a media company.

Peltz, CEO and founding partner of Trian Partners, said at Wednesday’s Shareholder Meeting before the vote that Trian invests in companies that have stumbled, aiming to collaborate with leadership to enhance their performance. While acknowledging Disney’s strong brand and recent cost-cutting measures, Peltz expressed ongoing concerns about the company’s strategy and board effectiveness. He stressed the need for Disney to focus on creating great content, delighting consumers, and delivering sustainable long-term value for shareholders. Despite recent stock gains, Peltz highlighted the need for continued improvement and accountability from Disney’s board.

In his 135-page white paper, Peltz outlined what Disney is failing and how his involvement would right the business and increase value for shareholders. The paper focuses on goals and of what needs to be done without offering solid solutions.

Peltz has repeatedly tried to be added to the board. This is the 25th time during the past three years Peltz has demanded a seat on the board and the second proxy fight for a board seat. During his 2023 effort he ended his campaign after Disney underwent. $5.5 billion restructuring.

This year, Peltz went all the way to a vote, but in the end he did not win a seat. But that doesn’t mean he will dissapear as one might see in a movie. “Regardless of the outcome of today’s vote, Trian will be watching the company’s performance. We hope this campaign has had a positive impact on Disney,” he said.

As for Iger, after the vote was announced he talked about reinvigorating and turbocharging the company’s growth trajectory. With a focus on creativity, innovation, and leveraging its vast array of beloved brands and franchises, Disney is poised for an extraordinary future, he said.

Iger began by emphasizing Disney’s commitment to storytelling, highlighting the company’s iconic past while also looking forward to an era of limitless potential. He underscored the importance of creativity as the driving force behind Disney’s diverse businesses, which include Disney, ESPN, ABC, Pixar, Marvel, Lucasfilm, National Geographic, Fox Searchlight, and more.

The CEO recounted the significant progress made over the past year in restoring creativity to the heart of Disney’s operations, leading to a period of sustained growth. He outlined four key priorities driving this transformation: reinvigorating creativity at the film studios, positioning ESPN as the premier digital sports platform, turbocharging growth in the experiences business, and expanding the company’s streaming offerings.

Disney’s recent successes in the film industry were highlighted, with numerous award wins and a robust slate of upcoming releases, including highly anticipated titles like “Kingdom of the Planet of the Apes,” “Deadpool and Wolverine,” “Alien: Romulus,” and “Mufasa: The Lion King.” Additionally, audiences can expect the release of “Pixar’s Inside Out 2” and a sequel to the beloved film “Moana,” featuring the return of stars Auliʻi Cravalho and Dwayne Johnson.

Iger also highlighted the recent including of Hulu into Disney+ and the launch of a standalone ESPN streaming service. These initiatives aim to provide consumers with a comprehensive entertainment experience, incorporating live sports, original content, interactive features, and more.

Furthermore, Disney’s experiences business is set to undergo significant expansion, with new attractions planned for Disneyland, Disneyland Paris, and Tokyo DisneySea. Notably, Iger teased the possibility of bringing the world of Pandora from “Avatar” to Disneyland, showcasing concept art for this potential new destination.

In closing, Iger expressed gratitude to shareholders for their continued support and confidence in Disney’s future. “Our plans are ambitious. Our strategy is working and our future is bright,” he said.

That is unless the proxy battle with Peltz turns into a trilogy.