Disney CEO Bob Iger has unveiled a set of initiatives that he believes will result in “significant growth” for the massive entertainment company.A Disney+-only webcast of Taylor Swift’s concert film from her Eras Tour is part of the plans.Additionally, the company plans to invest $1.5 billion (£1.2 billion) in Epic Games, the company behind the wildly successful video game Fortnite.Activist investor Nelson Peltz has been putting pressure on Disney, demanding a reorganization of the company.In addition to increasing revenue from its streaming division, the US billionaire hopes to see Disney’s movie box office results improve. Several Disney movies from the Marvel series, among others, did not perform well at the international box office in 2018.
Disney reported in its third-quarter financial results that, as a result of an October price rise, 1.3 million fewer people were using its streaming service.
Disney does, however, still anticipate that its streaming division will turn a profit by September of this year. Thanks to the partnership with Epic, players will be able to communicate with characters from Avatar, Disney, Pixar, Marvel, and Star Wars.
“This marks Disney’s biggest entry ever into the world of games and offers significant opportunities for growth and expansion,” added Iger.
The company announced a joint venture with Fox and Warner Bros. Discovery to develop a new sports streaming platform the day before the announcements.
Major League Baseball, the National Football League, the National Basketball Association, and the FIFA World Cup are just a few of the many sports rights that the three giant US media companies jointly possess.
Additionally, Mr. Iger disclosed plans to repurchase $3 billion worth of investor shares. Disney’s reports showed that its pre-tax profits increased to $2.8 billion from $1.7 billion in the previous quarter, despite flat revenues of $23.5 billion.
When asked if Mr. Peltz’s demands for a position on the Disney board would be met, Mr. Iger told CNBC, “The last thing we need right now is to be distracted in terms of our time, our energy, by an activist or activists that, frankly, have a completely different agenda, and don’t understand our company, its assets, even the essence of the Disney brand.”
However, a representative for Mr. Peltz’s Trian Fund Management company declared: “It’s like deja vu all over again.” We didn’t enjoy the movie’s conclusion when we watched it last year.”
Following the revelations, Disney shares increased by more than 6% in New York’s extended session. Less than a year after leaving Disney, Mr. Iger abruptly returned to the company after leading it for 15 years, departing at the end of 2021.After the company’s stock fell and Disney+ kept losing money, he was brought back.
Actress Gina Carano, who was fired from Disney in 2021 for a social media post in which she equated being a Republican to being a Jew during the Holocaust, is suing the company separately.
Elon Musk, who funded the lawsuit, invited others to join it on his platform X, which was formerly known as Twitter.