The last few years have been especially rocky for The Walt Disney Company. Bob Iger officially stepped down as CEO in early 2020, just before the global pandemic closed theme parks and movie theaters, effectively shutting down the company’s entire business. Bob Iger’s return as CEO in 2022, was welcomed by the industry and Disney fans alike, but the returning hero faced challenges of his own.
A sinking stock price led to a proxy fight with activist investor Nelson Peltz that culminated in a recent Disney Shareholders’ Meeting where Peltz attempted to get himself on the Disney board. Peltz was ultimately unsuccessful in that bid, but it all worked out pretty well for him. CNBC reports (via Variety) that Peltz has now sold all his Disney shares, making a tidy profit of approximately $1 billion, because Disney stock has been on an upswing.
Disney Stock Is Performing Well Overall
Disney stock which is currently trading just over $100 per share, is up 11% on the year, slightly higher than the S&P 500 as a whole, which is usually the benchmark for stock success. It appears that the proxy fight may have been an overall success for all. Peltz made his money, while Wall Street has taken a look at Disney and decided that the future is brighter under Iger’s control than it would have been under other circumstances.
This is despite the fact that Bob Iger’s tenure has been marred by issues since his return. The shareholders' vote and the stock price were both indications that Disney is headed in the right direction and that past difficulties may finally be in the rearview.
Bob Iger’s Return As CEO Has Faced Challenges
Bob Iger has said the first year and a half or so of his return has been a period of “fixing” and there has been a lot to fix. At the box office Disney, the once unstoppable powerhouse, has had struggle after struggle. Only Guardians of the Galaxy Vol. 3 was a clear box office win, with everything either failing outright, or at the very least performing below expectations.
Disney+ has continued to grow, but it has yet to become profitable for the company. While this was always part of the plan, Disney+ isn’t expected to reach a profitable point until the end of 2024. Some of the losses just before Iger’s return were seen as excessively high. Iger has said he thinks that too much was being spent on content.
Even the Disney Parks, which make up a massive amount of the company’s revenue have seen their issues. While the Disney Experiences division has remained profitable, most of that success has come from international parks, with the domestic parks not always being as successful. There’s a feeling from some that Walt Disney World isn’t doing enough to compete with Universal Resorts and Destinations as it gets ready to open the brand new Epic Universe Park next year.
Disney+ is on track to be profitable this year. Walt Disney World is about to open Tiana’s Bayou Adventure which will likely bring in a lot of attention as well as guests. Deadpool & Wolverine is looking like it might be a massive hit. Perhaps Disney is on the way back to its previous position of excellence.
