Bob Chapek – Page 3 – A Walk With The Mouse

Investment Company Takes Stake in Disney

Posted on August 16, 2022August 16, 2022 by Mathew Corn Disney Parks, Uncategorized

Via DisDining.com

On August 10, The Walt Disney Company held its Third Quarter Earnings Call. During that call, Disney CEO Bob Chapek revealed that the company had made $21.5 billion in revenue, surpassing Wall Street expectations. Chapek also shared that the company expected to do just as well, or better, next quarter. He also shared that theme park Guests were spending 40% more while at the Parks, 50% of theme park Guests are purchasing Disney Genie+, and that Disney’s streaming service, Disney+, was expected to be profitable by 2024. However, one person doesn’t think that that is enough.

Daniel Loeb is the founder and CEO of Third Point — a hedge fund that just recently purchased a stake in The Walt Disney Company. Loeb is also working to purchase Comcast’s portion of ownership in Hulu, which is about 33%. Disney owns the other 67%. Loeb is taking the stake that he now has in Disney as an activist investor and is running with it. He believes that Disney “significantly underearns relative to its potential,” and he wants to change that. That is not the only massive change that Loeb wants to work with Disney to make.

First up, Loeb wants Disney to take a closer look at ESPN and potentially make it a spinoff of The Walt Disney Company. In a statement shared with The Hollywood Reporter, Loeb had the following to say regarding ESPN, which also streams as ESPN+.

“ESPN is a great business that currently generates significant free cash flow, enabling the Company to pay down debt and increase strategic options down the line,” wrote Loeb. “In addition, we realize ESPN content is part of the bundle being offered to subscribers of other products, both in Disney’s Linear and DTC businesses. Despite these advantages, we believe that a strong case can be made that the ESPN business should be spun off to shareholders with an appropriate debt load that will alleviate leverage at the parent Company.”

In addition to ESPN becoming its own entity, Loeb believes that Disney should combine two of its biggest pieces, Disney+ and Hulu. Chapek announced during the earnings call that Disney+ would be seeing a price increase when an ad-supported version is released on December 8. However, should Disney+ and Hulu combine, Disney+ subscribers will have to pay A LOT more if they want to keep streaming their favorite Disney movies. Some Hulu Live subscriptions already include Disney+, so it is unknown if those would increase in price.

Loeb’s last request of Disney is likely to be the most controversial. Loeb thinks that Disney is “underearning” and said that the Company should find ways to cut costs. Loeb wants Disney to look at assets that are underperforming and look at its profit margins and cut costs accordingly. There are no more details on what that would mean, but Disney fans have been seeing a lot of cost-cutting happening recently, especially at the theme parks. Promised and announced projects have not happened yet, and food portions are getting smaller while the prices are getting higher.

After Loeb announced his company’s purchase of a stake in The Walt Disney Company, Disney shares jumped more than 2%.

CEO Bob Chapek Claims Disney Is Not The Place For Politics

Posted on August 3, 2022August 3, 2022 by Mathew Corn Disney Parks, Uncategorized

Via InsideTheMagic.net

The last year or so has been quite a turbulent one for The Walt Disney Company. Controversy has seemed to gravitate toward all aspects of the company for the entirety of 2022, starting with the very critical reactions to how the company handles its response to Florida’s highly-contested Parental Rights Bill.

Disney decided to remain quiet on the bill, at first, that is. To many, this response, or lack thereof, was not satisfying at all, lacking any true agency. On the flip side, many thought Disney should stay out of the issue completely, but considering the company made political contributions to several sponsors of the legislation, Disney had already taken a stance.

Eventually, Disney and Chapek himself spoke out against the bill, even pledging millions of dollars to the Human Rights Campaign (HRC), which was eventually declined. Disney found itself traveling further into a PR nightmare when walkouts were held company-wide in protest of Florida’s controversial bill.

Things between Florida and The Walt Disney Company so much that Florida Gov. Ron DeSantis threatened to dissolve Disney’s Reedy Creek Improvement District, a special ruling that essentially allows Disney to act as its own form of government.

DeSantis and other Republican figures rallied against the company in an attempt to push back against Disney stepping out politically. While Disney has certainly sided one way or another in the past, there was not quite a time when Disney found itself in the middle of a political discussion, especially one so fierce. Currently, the state of Disney’s Reedy Creek is up in the air.

Remember, all of these events happened in the last few months, permanently cementing 2022 as one of the most tumultuous years in Disney Company history. However, Disney may be backtracking on how political it decides to get in the future.

It was recently reported by Hollywood screenwriter Kamran Pasha that Bob Chapek, who serves as The Walt Disney Company’s CEO, spoke with Kareem Daniel (Chairperson of Disney Media and Entertainment Distribution) at El Capitan Theatre in front of an audience on Thursday.

During the meeting, a lot was discussed, including Park and leadership strategies and the current state of Disney. Most notably, Chapek gave his own take on politics within The Walt Disney Company and Parks. Surprisingly, Bob Chapek declared for the first time publicly that The Walt Disney Company would attempt to exit politics and ideology going forward.

Specifically, Chapek said:

“When people come to a Disney park they don’t walk in with their political views on their sleeves. People don’t come to Disney to get political points of view, either from the left or the right. Disney is a source of positivity in the world, no matter your sex, race, or politics. That’s a core focus for me.

We aren’t exactly sure what this means, but it is in sharp contrast with how the company has acted in the last few months. It is important to note that Disney is engaged in an initiative that further promotes diversity and representation in all of its Parks and films, something that some fans may feel is political in nature anyway. However, to most, the prospect of improved inclusivity and diversity is an incredibly welcome one that we can’t wait to see more of in Disney Parks, movies, music, and television.

Perhaps one of the biggest moves in Disney history is also part of this initiative, with Disney completely retheming its iconic Splash Mountain attraction at both Disneyland and Walt Disney World.

An official poster announcing Tiana's Bayou Adventure, opening late 2024.

While Splash Mountain is a very iconic and beloved attraction and has become one of the most recognizable rides in the world, the basis for the ride does come from a film that Disney has done its best to hide. Disney’s Song of the South (1946) is a film that many have deemed racist for its depictions of the Reconstruction-era American South.

The film has been effectively erased from Disney’s ever-expanding catalog of animated films, though with enough digging, you are sure to find it online. While slightly sad, we at Inside the Magic couldn’t be more excited for the new ride, now called “Tiana’s Bayou Adventure,” which will be opening in 2024.

We can apparently expect a lot more information about this retheme at Disney’s upcoming D23 Expo, which takes place in September.

Report Says Bob Iger Thinks Appointment of Chapek Was One of His “Worst Business Decisions”

Posted on July 17, 2022July 17, 2022 by Mathew Corn Uncategorized

In early 2020, Disney CEO Bob Iger shocked and saddened Disney fans worldwide when he publicly announced that he would be stepping down from his CEO, effective immediately. Iger said that he would be stepping into the role of Executive Chairman and Bob Chapek would become CEO — with the two men working together for a smooth transition. Unfortunately, that smooth transition never happened, and the two men reportedly had a falling out and now barely speak. Iger has maintained his popularity with Disney fans — many of whom beg him to come back — while Chapek has struggled to find his footing, with petitions even circulating calling for his termination.

The Walt Disney Company CEO, Robert Iger arrives for the World premiere of Marvel Studios’ “Avengers: Endgame” at the Los Angeles Convention Center on April 22, 2019 in Los Angeles. (Photo by VALERIE MACON / AFP) (Photo credit should read VALERIE MACON/AFP via Getty Images)

Now, in a bombshell new report from Business Insider, we are learning just how tumultuous Iger’s time working with Chapek was and how much he seems to regret the decision to name Chapek as his replacement. Per Business Insider:

Bob Iger thought he would spend his final year as Disney’s CEO on a global goodbye tour, bidding a personal adieu to the dignitaries and employees who helped create Shanghai Disney and theme parks from Tokyo to Paris.
Instead, according to several Disney sources and others familiar with Iger’s thinking, the executive spent 2020 and 2021 watching COVID-19 devastate the company he had led for 15 years — and regretting what he has called one of his worst business decisions: the selection of Bob Chapek as his successor.

According to insiders, Iger made an agreement with the Board of Directors that he would help guide Chapek as the company dealt with the COVID-19 pandemic and as Chapek figured out his own direction as CEO. Sadly, things didn’t go that way and Chapek made a series of decisions that Iger did not agree with and, to Iger’s surprise, Disney’s Board stood behind the new CEO.

Since becoming CEO, Chapek has made a series of decisions that have not gone over well with Disney fans and Disney shareholders. Not only did Chapek get into a public spat with Marvel star Scarlett Johansson, but he also fumbled the company’s response to Florida’s controversial Parental Rights in Education bill. Most recently, Chapek abruptly fired Disney’s Head of General Content — Peter Rice. Many felt that Rice directly threatened Chapek’s role as CEO.

None of those sat well with Iger, and he has not been quiet with those he knows about his feelings. According to Business Insider:

While morale is described as terrible among many content-side executives, Wall Street is giving Chapek the benefit of the doubt for now, counting on a rebound at the company’s parks, where margins are expanding thanks to big price hikes. After hitting an all-time high of over $200 in March 2021, Disney’s share price has fallen 41% year-to-date.
Iger meanwhile has continued to voice his regrets. He has said he did not know that Chapek was such a “novice” when it came to handling complex issues like talent management and political battles, and that Chapek was arrogant and uninterested in other people’s opinions, said the former Disney exec. Chapek defenders say he has made bold moves in restructuring Disney and led huge capital spending projects at the parks. A Disney spokesman declined comment.
“For many of us who are deeply loyal to him,” Iger’s choice of Chapek was “confusing,” this person said. “No one expected it to fall apart this fast.”

Even though Iger is no longer a part of Disney and his relationship with Bob Chapek is non-existent, friends say that the former Disney executive is “still rooting for Disney to win.”

Disney Board Extends Bob Chapek’s Contract For 3 Years

Posted on June 30, 2022June 30, 2022 by Mathew Corn Uncategorized

Via DisDining.com

In a move that was expected — but not necessarily popular — The Walt Disney Company’s Board of Directors has voted unanimously to extend Disney CEO Bob Chapek’s contract by 3 years. We had reported earlier that the Board was planning on extending Chapek’s contract at either their meeting this month or at their meeting in September, and we are now learning they chose to jump on it now. Chapek’s contract was set to expire in February 2023, but will now expire in 2026.

The vote was reported by Business Wire, which also shared a statement from Susan Arnold — the chairman of the Board. According to Business Wire:

Today, The Walt Disney Company (NYSE: DIS) Board of Directors unanimously voted to extend Bob Chapek’s contract as Chief Executive Officer for three years.
“Disney was dealt a tough hand by the pandemic, yet with Bob at the helm, our businesses—from parks to streaming—not only weathered the storm, but emerged in a position of strength,” said Susan Arnold, Chairman of the Board. “In this important time of growth and transformation, the Board is committed to keeping Disney on the successful path it is on today, and Bob’s leadership is key to achieving that goal. Bob is the right leader at the right time for The Walt Disney Company, and the Board has full confidence in him and his leadership team.”

Bob Chapek also shared a statement after his contract was renewed, saying:

“Leading this great company is the honor of a lifetime, and I am grateful to the Board for their support,” said Bob Chapek, Chief Executive Officer. “I started at Disney almost 30 years ago, and today have the privilege of leading one of the world’s greatest, most dynamic companies, bringing joy to millions around the world. I am thrilled to work alongside the incredible storytellers, employees, and Cast Members who make magic every day.”

The move to renew Chapek’s contract may come as an unpopular one. Chapek has struggled to be seen in a positive light since he became CEO in 2020 — just one month before the theme parks were forced to shut down because of the pandemic. Chapek has made a number of controversial moves, including consistently raising prices, while many think he is cutting food portions and cleanliness standards. He also allowed the company to engage in a public spat with Marvel star Scarlett Johansson when she sued Disney for breach of contract.

Recently, Chapek spoke out against Florida’s Parental Rights in Education Bill — which angered those who supported the bill. Others remained upset with Chapek because they felt he didn’t speak up soon enough — going so far as to call the issue “irrelevant” to the company. And then, in a move that shook Hollywood, Chapek fired Executive Peter Rice — who many saw as a threat to his position as CEO.

Couple all of those things with the fact that Disney stock has gone dropped more than 40%, and you had a lot of people hoping that the Chapek years were coming to an end. Abigail Disney has spoken out against Chapek numerous times and has said that she wants to join with other shareholders to reduce Chapek’s paycheck, but with this contract renewal, it looks like that fight may be over.

Congress moves forward with another jab at Disney

Posted on June 17, 2022June 17, 2022 by Mathew Corn Disney Parks, Uncategorized

The battle between Disney and Florida Governor Ron DeSantis continues, and now members of the federal legislature are stepping in and taking their own measures to make a statement to the House of Mouse, this time proposing legislation to end a nearly 20-year statute at Disney World and Disneyland.

Congressman Troy Nehls (R-TX) immediately went to work on attempts to remove the “no-fly zone” status in the skies over the Walt Disney World Resort in Central Florida and the Disneyland Resort in California.

Representative Nehls penned letters to House Speaker Nancy Pelosi (D-CA) and to Transportation Secretary Pete Buttigieg regarding Disney’s current restricted airspace. The flight restriction was put into place in 2003 and not in response to the September 11 terrorist attacks, as many believe.

It’s why Guests can look up into the skies over Magic Kingdom, Disney’s Animal Kingdom, EPCOT, Hollywood Studios, and Disney Springs, and they won’t see any airliners.

In his letter to Buttigieg, Congressman Nehls points out that Disney is the only theme park resort owner to have such privileges.

“In 2003, Congress passed Section 352 of Public Law 108-7, which was later amended by Section521 of Public Law 108-199. These acts created permanent “temporary” flight restrictions in the airspace over Disney’s resorts in Florida and California. These restrictions only applied to Disney’s parks. No other theme parks have restrictions on airspace, including neighboring competitors like Universal Studios.”

In his letter, Nehls calls the no-fly zones “preferential treatment” to Disney, saying U. S. Disney Parks don’t meet the standard requirements for having the status. He also asks for a response from Buttigieg’s office by June 3, 2022.

On Monday, according to The Daily Caller, Nehls introduced legislation that, if passed, would require the Secretary of Transportation to abolish the no-fly zones over both U. S. Disney Parks. Called the Airline’s Independent of Restrictions Act, or AIR Act, the proposed legislation has 5 co-sponsors: Colorado Rep. Lauren Boebert, Georgia Rep. Andrew Clyde, California Rep. Doug LaMalfa, Florida Rep. Scott Perry, and Florida Rep. Gregory Steube.

Just before introducing the new legislation, Nehls gave a statement to The Daily Caller, saying, “the federal government should not grant special privileges and pick favorites for powerful, well-connected companies like Disney.” He went on to say that “measures designed to protect our national security and public safety should not be co-opted by corporations looking to gain.

It’s been months since Florida passed the controversial Parental Rights in Education law–a move that set a chain of events into motion, beginning with an inflammatory public statement from The Walt Disney Company immediately following news that the bill was signed into law.

In the statement, Disney criticized DeSantis’s move, saying the bill “should never have passed” and that the company’s goal “is for this law to be repealed by the legislature or struck down in the courts.”

Statement from The Walt Disney Company on signing of Florida legislation: pic.twitter.com/UVI7Ko3aKS
— Walt Disney Company (@WaltDisneyCo) March 28, 2022

Florida Governor Ron DeSantis immediately fired back, saying, “For Disney to say that the bill should have never passed and that they are going to actively work to repeal it–I think one, was fundamentally dishonest, but two, I think that crossed the line.”

DeSantis took things a step further, saying that Disney’s “woke ideology” could cost the company its special privileges in the Sunshine State, referring to Disney’s Reedy Creek Improvement District in parts of Orange and Osceola Counties, which allows the company to function as its own government. Within days, members of the Florida legislature introduced a bill that would effectively dissolve any Florida special districts–like Reedy Creek–that were created prior to the ratification of Florida’s state constitution in 1968.

The bill quickly passed in Florida’s House and Senate and was signed into law by DeSantis in the last days of April, and will take effect July 1, 2023.

In response to Florida’s “treatment of Disney,” governors from other states like Colorado and California posted proverbial welcome mats on social media, letting Disney know they could move to these states and be welcomed with open arms. A judge in South Texas went so far as to pen a letter to Walt Disney Company CEO Bob Chapek, inviting him and the company to open a brand-new theme park resort in the Lone Star State following the passing of Florida’s new law.

At the same time, some members of the federal legislature stepped into the ring with Disney and DeSantis, taking aim at the company’s rights to Steamboat Willie, which are set to expire in 2023, saying they won’t take steps to extend Disney’s rights (as they did in the late 1980s) in response to Disney’s stance on Florida’s Parental Rights in Education law.

It remains to be seen how far the state and federal governments will go in using their power to take power from The Walt Disney Company.