Disney to Pause ALL Political Contributions In Florida

For weeks, the Walt Disney Company has been battling extreme discontent and anger within its ranks. Thousands of Cast Members felt like Disney did not have their backs when it remained silent on the passing of Florida’s Parental Rights in Education Bill. The bill would prohibit educators from talking about things like gender identity and sexual orientation in kindergarten through third-grade classrooms. Critics have dubbed the bill the “Don’t Say Gay” bill and worry that it would target the LGBTQ+ community.

After mounting pressure, Disney made a statement on the bill, but it didn’t hit the mark. Many felt that it didn’t say anything. After that, Disney CEO Bob Chapek sent an email to staff saying that he stood with LGBTQ+ Cast Members. However, he did not condemn the bill, and the email only further upset already let-down Cast Members. Then, Chapek made a firmer statement and denounced the bill at the Annual Shareholders Meeting. He also said that he would be meeting with Florida Governor Ron DeSantis.

DeSantis said that a meeting with Chapek had not been scheduled. A spokesperson for the Governor said that his position on the bill had not changed. DeSantis then accused Disney of being “woke” and called the company put for its business dealings with China.

It now seems like Bob Chapek has had enough of the Governor and the controversial bill. On March 11, Chapek announced that Disney would be pausing all political donations to Florida politicians.

And in a move rarely seen in corporate America, Chapek emailed all staff, apologizing for his prior actions. The email, which was shared with The Hollywood Reporter, said:

To my fellow colleagues, but especially our LGBTQ+ community,

Thank you to all who have reached out to me sharing your pain, frustration and sadness over the company’s response to the Florida “Don’t Say Gay” bill. Speaking to you, reading your messages, and meeting with you have helped me better understand how painful our silence was. It is clear that this is not just an issue about a bill in Florida, but instead yet another challenge to basic human rights. You needed me to be a stronger ally in the fight for equal rights and I let you down. I am sorry.

Our employees see the power of this great company as an opportunity to do good. I agree. Yes, we need to use our influence to promote that good by telling inclusive stories, but also by standing up for the rights of all.

Starting immediately, we are increasing our support for advocacy groups to combat similar legislation in other states. We are hard at work creating a new framework for our political giving that will ensure our advocacy better reflects our values. And today, we are pausing all political donations in the state of Florida pending this review. But, I know there is so much more work to be done. I am committed to this work and to you all, and will continue to engage with the LGBTQ+ community so that I can become a better ally. You will hear more about our progress in the coming weeks.

I truly believe we are an infinitely better and stronger company because of our LGBTQ+ community. I missed the mark in this case but am an ally you can count on—and I will be an outspoken champion for the protections, visibility, and opportunity you deserve.

Bob

Prior to this memo, the Disney CEO had repeatedly said that the best thing Disney could do was continue to create inclusive content. However, now the company will be taking a more active role in protecting the rights of its Cast Members. Chapek admitted that he “missed the mark” but wants his staff to know that he is an ally to them and will be working hard to prove that.

Bob Chapek

During the Shareholders Meeting, Chapek said that the company would be donating $5 million to the Human Rights Campaign. The HRC rejected that offer and said that Disney needed to do more to fight for some of its most vulnerable Cast Members. It looks like Chapek took that message to heart and is now making a more concerted effort to fight for those who make Disney the admired company that it is.

Disney CEO Confirms ‘Encanto’ Will Be an Entire Franchise

Walt Disney Company CEO Bob Chapek has hinted at the future of the mega-popular Encanto (2021) characters, indicating that the hit movie will become an entire franchise.

The Walt Disney Animation Studios film premiered in theaters on November 24, 2021. After a relatively unimpressive 30-day theatrical run, Encanto has exploded on Disney’s streaming platform. It’s Lin-Manuel Miranda soundtrack is now even officially more popular than the hit Frozen (2013) score, which featured hits like Idina Menzel’s “Let It Go” and “For the First Time In Forever.”

Felix (L) and Pepa (R) in 'Encanto'

One Encanto song in particular — “We Don’t Talk About Bruno” — has skyrocketed up the charts. And, as it turns out, composer Miranda (Hamilton, Moana, Mary Poppins Returns) had such a hunch about the tune’s popularity that he had an “NDA for toddlers” with his sons.

Mirabel (L) and Abuela Alma (R) in 'Encanto'

During last week’s first-quarter Walt Disney Company earnings call, Chapek confirmed that the company has launched an entirely new franchise with Encanto:

“We’ve had a very strong start to the fiscal year, with a significant rise in earnings per share, record revenue and operating income at our domestic parks and resorts, the launch of a new franchise with Encanto, and a significant increase in total subscriptions across our streaming portfolio to 196.4 million, including 11.8 million Disney+ subscribers added in the first quarter…”

encanto antonio

As for where the franchise might go in the future, the options are nearly endless.

From a potential sequel film in the vein of Frozen II (2019) to Disney+ Original series like Moana and Princess Tiana are both getting to more toys and merchandise — which are already flying off the shelves, with the Magical Casa Madrigal Play Set sold out everywhere — to, perhaps, even a Broadway show, Encanto‘s popularity will undoubtedly continue to rise.

Mirabel (L) and Bruno (R) in 'Encanto'

Miranda, in fact, recently spoke to E! News about his desire to see the popular movie come to the stage:

“I think it weirdly lends itself well. They don’t always, you know? Like, I can’t picture a Moana Broadway musical. I don’t know how you’d do the ocean. My first draft of the last song in the movie, ‘All of You,’ was like seven minutes long. It was so late in production that they were like, ‘Lin, we won’t make the movie in time. You actually have to cut this down.’ So I’ve got the Broadway finale like in the chamber.”

Shareholders don’t have the power to oust Disney CEO Chapek

Via DisDining.com

According to experts weighing in on the subject, shareholders have their proverbial carts before their proverbial horses.

There’s been a lot of talk this week about a shareholder coup of sorts that aims to oust Walt Disney Company CEO Bob Chapek from his post amid a growing distaste for changes across a wide assortment of Disney’s offerings. Disney’s theme park fans are especially angered by price increases across the parks for things like annual passes and the removal of once-upon-a-time freebies like Memory Maker (with an Annual Pass purchase) and Fastpasses.

Bob chapek at hollywood studios

Just how do shareholders plan to overthrow King Chapek?

Disney’s annual shareholder meeting is only a month away, and a proxy vote is on the agenda. Shareholders are planning to vote against Chapek in the election, ousting him from his ivory tower and restoring peace and magic to all the lands of the Disney Parks. There’s just one problem with that. Actually, there are several problems with this.

It’s no secret that many Disney fans do not double as Chapek fans. Chapek has been seated comfortably at the helm of The Walt Disney Company since early 2020, and many fans–especially Disney Parks fans–feel that Chapek’s is an administration of demise, of destruction–an administration that, to some, seeks to undo what it took Walt Disney, his team, the Imagineers, and thousands of others years and years to build.

And they don’t like it.

cartoon of bob chapek

Now, a growing number of Disney’s fans who are also shareholders in The Walt Disney Company plan to make their voices heard by voting not to keep Chapek on the Board of Directors. That’s problem #1. The vote isn’t about keeping or ousting Chapek as it relates to his role as CEO. Next month’s shareholders’ vote is strictly about the Board of Directors, and it’s not just Chapek on the vote, but all 11 Board members. Removing Chapek from the Board won’t necessarily bring about the change that angry shareholders are seeking. Chapek’s CEO post has no “for sale” sign in the driveway.

Problem #2 becomes evident when you consider that most fans who are shareholders don’t hold the number of those shares necessary to bring about a massive change in the makeup of Disney’s Board. So even if ridding the Board of Chapek would satisfy shareholders, it isn’t probable.

Another Disney exec faced a similar fate in 2004 when 43% of the shareholders used those shares to give a strong voice to the growing unrest over then-CEO Michael Eisner. Incidentally, that 43% was thanks to many of Disney’s large shareholders, including Walt’s nephew Roy and PIXAR’s head Steve Jobs. It wasn’t a large enough vote to boot Eisner from his seat, but Disney read the message from shareholders loud and clear. Eisner was demoted as Chairman of the Board and then resigned as CEO only 12 months later.

And Problem #3 might even be the biggest problem of all. The congregation of Chapek-booters is largely comprised of theme park fans angry about change. They’re also frustrated by long lines at the parks and higher prices for annual passes. But many of Disney’s shareholders are investment giants. They aren’t buying shares for the perk of claiming ownership in the House of Mouse; they’re buying shares anticipating a return–a hefty return. So to those shareholders, word of longer lines in the midst of an increase in ticket prices creates a resounding “cha-ching” in their ears. Why would those shareholders vote to make any big change when it’s all good news for them?

Investment giants know about Genie+ and Lightning Lane too, and they don’t have nearly the problem with those so-called “inflated” costs as individual shareholders might. After all, they stand to gain sizable ROIs because of them.

Shareholders May Be Planning to Oust Bob Chapek

Since becoming CEO of The Walt Disney Company in early 2020, Bob Chapek has been fighting an uphill battle. Chapek became CEO of Disney in February 2020, and less than one month later, Disney Parks around the world were forced to shut down due to the pandemic. From there, Disney was forced to lay off and furlough tens of thousands of employees — some of whom have yet to be brought back to work.

Chapek has also been dealing with Guests’ anger at the cancellation of Disney’s free FastPass system and its paid-for replacement, Disney Genie+. The company was also in a very public dispute with Marvel star Scarlett Johansson when the starlet sued them for breach of contract. Disney has also not yet brought back trams to all of its U.S. Parks. There have also been thousands of complaints about the quality of the expensive food at the Parks and Disney magic being lost due to an increased focus on profits.

Online petitions have been circulating to have Chapek fired, with the most popular one reaching nearly 100,000 signatures. And now it seems that some shareholders are looking to oust the embattled CEO from his position on Disney’s Board of Directors. An anonymous Redditor known as MightyIrish posted to the social media platform that shareholders were being asked whether or not they wanted to re-elect Chapek to the Board of Directors.

MightyIrish was voting no and said:

If you are a Disney shareholder you likely received an email yesterday asking you to vote in the annual meeting. Bob Chapek is up for re-election to the board of directors. This is the most direct way to let Disney know if you are unhappy with his leadership, at least moreso than complaining on Reddit or signing an online petition. It may seem insignificant, and will likely not be successful in removing him directly, but recall that Michael Eisner lost 43% of the vote in 2004 after Roy E. Disney lead a campaign to oust him ( https://www.nytimes.com/2004/03/03/business/media/disney-dissidents-rebuke-eisner-denying-him-43-of-vote.html ) and he was removed shortly thereafter. We can do this again.

Other Redditors jumped into the reply thread and shared that they were also voting no. Some said that they had tried to share the news about not voting for Chapek’s reelection on other Disney sub-Reddits, but those posts were deleted.

Shareholders can vote to either keep Chapek on the Board or select someone else by March 8. After that, votes will be counted.

Upon Iger’s Departure, Disney Suffering From “Crisis of Confidence”

Via DisDining.com

When Bob Iger announced that he would be stepping down as CEO of The Walt Disney Company, he promised that there would be a smooth transition as Bob Chapek took over the role. Well, one pandemic, thousands of layoffs, multiple theme park shutdowns, Cast Member strikes, and multiple lawsuits, the past nearly two years have been anything but smooth.

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)

Unfortunately, company executives and shareholders are seeing that things are quite rocky and are leaving and selling their shares to get out. According to a new report from Bloomberg, company stocks have tumbled 16% this year, and the investment company Morgan Stanley says that Disney is suffering from a “crisis of confidence.”

Per Bloomberg:

Wall Street, meanwhile, is growing skeptical that the company’s flagship streaming service, Disney+, will hit Chapek’s target of as many as 260 million subscribers in 2024. Disney shares are down about 16% this year, heading toward their worst annual performance since 2008. Morgan Stanley said the stock is suffering from a “crisis of confidence.”

“The biggest problem that Disney is facing is Disney+ right now,” said Porter Bibb, a veteran media investor. “It’s not a profit segment. It’s kind of stalling in terms of subscribers. And it’s a question mark whether you can put a supremely popular and winning streamer together with comic book characters that keep getting recycled over and over again…

Bill Smead, a Phoenix-based money manager who has owned Disney stock for 20 years, recently sold all of his 191,747 shares. He thinks Chapek will have a tough time delivering the kind of returns Iger did. 

“You never want to be the coach who follows John Wooden,” Smead said, referring to the UCLA basketball legend.

Bob Iger Bob Chapek galaxy's edge

While Disney+ subscription numbers have not climbed as high as the company would have liked, they are still banking on drawing more people in as they add more original programming on the Disney, Marvel, and Lucasfilm ends. Disney recently announced at a shareholder meeting that between Disney+, ESPN+, and Hulu, the company has approximately 180 million subscribers.

Bob Iger’s last day at The Walt Disney Company is December 31, 2o21, and 2022 will mark the first time that Chapek will take the reins on his own, so it remains to be seen whether he can bring back the confidence that the Disney name once instilled in the stock market and shareholders.