$1 Trillion Group Emerges to Buy the Walt Disney Company

Via DisDining.com

By the organization’s own admission, tech giant Apple has zero interest in acquiring Disney, but another company is very interested–ready and financially able to scoop up Mickey and the gang, and pre-acquisition procedures have already begun.

Veteran Disney CEO Bob Iger was reinstalled by The Walt Disney Company’s board just before Thanksgiving 2022. Iger’s return was the board’s attempt to stop the proverbial bleed at Disney following one of the most tumultuous times in the company’s history–one that lasted nearly three years and was rife with challenges posed by an unexpected global pandemic that rendered Disney Parks non-operational, poor financial performance, less-than-optimal revenue, and a major rift between the company and the state of Florida.

And while most diehard fans applauded the removal of then-CEO Bob Chapek and were thrilled with the reinstatement of Iger’s tenure, many of them understood that such a shift at Disney’s discretion meant things within the company were likely more dire than anyone expected. It would be months before they discovered just how well their intuitions had served them.

Bob Iger Returns As Disney CEO Effective Immediately - Park Savers

Iger was called back to right the ship at Disney, to make the company as profitable as it had been prior to Chapek’s administration, and to work on easing tensions between Disney and Florida’s Gov. Ron DeSantis. But just two days after Chapek’s removal, an insider at Disney made headlines when he told a reporter with The Wrap–though in anonymity–that Iger had plans for the ultimate change within the company–a change that would ultimately solve all of Disney’s pesky little problems.

And Iger would bring about that change by selling The Walt Disney Company to another entity entirely.

The insider, who worked with Bob Iger at Disney before Iger retired in December 2021, said the veteran CEO was just the man for the job, as Iger has long been known for the many acquisitions he initiated and oversaw during his 15 years as chief at The Walt Disney Company.

He’s going to sell the company,” the insider said during an interview. “This is the pinnacle deal for the ultimate dealmaker.” He continued, saying, “Landing a deal with Apple–or some other megabuyer–would also cement Iger’s legacy, [and] I think he’d welcome it.”

Disney CEO Bob Iger to Extend His Contract Beyond 2024: Report - Disney Dining

The mystery messenger noted that selling to a company like Apple could make sense for Disney as the two entities have “similar brand identities” and could each benefit from such a venture. The deal would be all the sweeter as it would forever brand Iger’s name under the heading of “last-ever CEO of The Walt Disney Company.”

But a report at AppleInsider in November 2022, which has been updated this week (though it communicates the same message), says that no matter how many times a Minnie-Mickey-iPad-iPhone partnership is suggested, encouraged, talked about, or publicized, Apple simply has no plans for such an acquisition. Such an idea of an Apple-Disney merger or acquisition isn’t a new one, anyway. In fact, Steve Jobs’ untimely passing is likely what stopped a merger many years ago, according to Bob Iger himself.

Bob Iger was more than Steve Jobs' friend: He was legacy media's most tech-savvy CEO | CNN Business

But while Apple isn’t interested in playing cat and (Mickey) Mouse, another company looks to be positioning itself for such an acquisition, and very few people are talking about it.

During The Walt Disney Company’s fiscal third-quarter earnings call on Wednesday afternoon, just after the closing bell on Wall Street, Iger read aloud from the company’s public earnings report, giving details about Disney’s earnings and revenue during the months of April, May, and June 2023.

Iger talked about the continuing lack of profitability of Disney+ and unveiled an increased pricing plan for the less-than-lucrative streaming service. Disney+ rolled out on November 12, 2019, nearly four years ago, and has yet to earn a profit–a problem that continues to plague the entertainment behemoth and one that serves as the cornerstone in a class-action lawsuit brought against Disney by shareholders who allege that top executives in the company–namely former CEO Bob Chapek, former CFO Christine McCarthy, and former Chairman of Disney Media and Entertainment Distribution Kareem Daniel–engaged in illegal business practices by willfully misrepresenting the profitability of Disney’s streaming service, thus misleading investors.

The only credit due Iger in his response is that he refrained from engaging in any dancing that circumvented a bush, and further, he steered clear of interjecting a response that served only to create a diversion from the question at hand like any well-versed politician would have offered.

bob iger disney fox merger storm clouds

“I just am not going to speculate about the potential for Disney to be acquired by any company, whether they’re a technology company or not,” Iger said to analysts on the call. “Obviously, anyone who wanted to speculate about such things would have to immediately consider the global regulatory environment. I’ll say no more than that. It’s just–it’s not something that we obsess about.”

Well played, Mr. Iger. Except that the CEO’s refusal to answer the question–“I’ll say no more than that”–served as answer enough for some–this writer included–who then set about the task of digging deeper (once again, this writer included)–presumably deeper than Iger and the board currently want anyone outside the doors of the Burbank offices to venture at this time.

The Walt Disney Company

Iger was recalled by Disney’s board to address a number of challenges within the company–some that reportedly developed as a result of Chapek’s poor performance as CEO and some that resulted from the uncertain nature of business.

File:ESPN wordmark.svg - Wikimedia Commons

Among the many challenges presented to Iger following his return was one with which he was no doubt already familiar: the question of what to do with ESPN, once considered the sports juggernaut owned by Disney. A report by Alex Sherman and Lillian Rizzo at CNBC suggests Iger is hopeful about the development of strategic partnerships with sports leagues like the MLB and the NBA–partnerships that would call for cash infusions or the infusion of assets, such as content, both of which would ultimately save Disney billions:

Disney is considering ways to save cash as it tries to shore up its balance sheet. The media giant’s streaming division continues to lose money — with $512 million lost in its most recent quarter — and the company would like to pay down its $44.5 billion in debt. Disney also likely owes at least $9.2 billion to Comcast for its minority stake in Hulu. Agreeing to a deal where ESPN trades equity for sports rights could potentially save Disney billions of dollars that it can then use for other strategic ventures. ESPN struck a deal earlier this week with Penn Entertainment, which will provide it with $1.5 billion in cash over the next 10 years.

“We’re looking for partners that are going to help ESPN successfully transition to a [direct-to-consumer] model,” Iger said during Wednesday’s earnings call. “And that, as I’ve said, can come in the form of either content or distribution and marketing support or both.”

Revenue and profits for the Disney-owned sports network seem comfortable in their continual nosedive, and they’re in good company with the plummeting revenue and profits across Disney’s other cable networks, all of which were down 6% to $14 billion and 29% to $3 billion, respectively, during the first six months of Disney’s fiscal year 2023 (October 2022 to March 2023). And while Iger looks to the four major sports leagues to buddy up with Mickey, he has other possible solutions simmering on the stove at Disney when it comes to stopping the bleed at ESPN. According to Peter Csathy at The Wrap, the veteran CEO is leaning on the good graces and ingenuity of Disney’s former chief of strategic planning to help him decide the best approach to his ESPN problem:

Iger has retained former top lieutenants Kevin Mayer and [his business] partner Tom Staggs in a ‘consulting capacity’ to help decide ESPN’s fate. This intriguing development followed Iger’s recent uncharacteristically frank and gloomy comments that pointed to the notion of Disney shedding some of the assets it built up under his first run as CEO. 

Mayer and Iger were joined at the hip as Disney carried out an enviable string of lucrative mergers and acquisitions during Iger’s first run as CEO. Not only did Mayer handle the strategic planning needed for the successful acquisitions of PIXAR ($7.4 billion in 2006), Marvel Entertainment ($4 billion in 2009), and Lucasfilm ($4.05 billion in 2012), but he also led the charge during Disney’s massive $71 billion buyout of FOX Entertainment’s assets in 2019.

Mayer’s role at the House of Mouse afforded him access to details about Disney’s inner workings, including money trails, the profitability of IPs, and the like. So could Mayer eventually play a role in righting Disney’s unsightly ship? That remains to be seen, but his current associations may ultimately be responsible for settling the question of whether or not to sell The Walt Disney Company to another entity.

There’s no question that the sell-off of at least a portion of Disney’s assets is on the table. Iger publicly began the work of slimming down the entertainment company in February 2023 when, during the fiscal first-quarter 2023 earnings call, he announced a huge, all-hands-on-deck cost-cutting initiative, effective immediately, that was developed with the goal of excising $5.5 billion from the company’s financial waistline. A reorganization was announced, as well as plans to layoff more than 7,000 employees–all in the name of keeping the Mouse more humble on the balance sheet.

One of PIXAR’s most tenured movers and shakers–one responsible for saving the second Toy Story film from certain demise–was among those let go at Disney, and an epic upheaval in the Disney-owned ABC News division left many jobless, and the ones who survived the cuts were then awarded heavier caseloads to cover the gaps left by those who got the boot. Following Disney’s wave of layoffs, the company then announced the decision to sell off nearly one-third of its assets, though as of the time of this publication, the for sale sign on ABC’s front lawn remains.

The Walt Disney Company’s current financial dilemma gives every appearance of being dire, indeed.

But the return of Disney’s former king of strategic planning, Kevin Mayer, to CEO Bob Iger’s side may very well be the lead-up to the acquisition of Disney by the Blackstone Group, a huge private equity firm that currently manages $1 trillion in mergers and acquisitions (M&A), with a majority shareholder named the Vanguard Group–the same majority shareholder of Walt Disney Company stock.

File:The Blackstone Group Logo.svg - Wikimedia Commons

Mayer and his business partner, Kevin Staggs, another former lieutenant under Iger also called to serve in a consultative role at Disney, are co-CEOs of Candle Media, an expanding media holding company that owns actress Reese Witherspoon’s Hello Sunshine, which it purchased for $900 million, and Moonbug Entertainment, creators of the children’s educational media brand CocoMelon, the acquisition of which cost Candle $3 billion.

And while at first glance, it makes sense that Iger would bring back two of his most trusted cohorts to run through a best-practices approach related to ESPN, a quick jaunt along the money trail at Candle Media makes it look very possible that there’s more going on here than meets the visionary eye. Candle Media’s financial backer is the Blackstone Group. And as the manager of $1 trillion in M&A, Blackstone has all the cheese it could ever need to lure a hungry mouse.

Disney Finally Confirms What’s Hurting the Bottom Line

There’s been a lot of talk in recent weeks about the crowds at Walt Disney World. Depending on who you’re listening to, you’ve either heard that the crowds have disappeared or are crazier than ever free. You’ve also even heard that it’s not affecting Disney or that it has drastically hurt their bottom line. All of that has been pure conjecture. No one has had a definitive answer… until today. 

Disney has released its third-quarter earnings statement. While they naturally attempt to gloss over the things That make them look bad, if you know where to look. You know where to find the information income at the parks and resorts is up. This is a very good thing. However, a closer look at the earnings report shows that all is not well in Florida.

Earnings call

Credit: The Walt Disney Company

The report states, “Lower operating income at our domestic parks and resorts was attributable to a decrease at Walt Disney World Resort.” That means those thinning crowds? They matter. It is also significant that for the second place in a row, international parks have outlined domestic parks. We wouldn’t go so far as to say that Disney World is in trouble, But it does seem to be on a downward spiral.

Disney’s admission that crowds have thinned is significant as well. It flies in the face of comments that they have made previously. Bob Iger has gone on record in the past saying that the crowds aren’t smaller and that he’s not concerned about Disney World. The earnings report tells a very different story. Iger is an excellent showman, but the numbers are always going to tell the truth.

Disney To Change Gears As CEO, Bob Iger, Fears A “Culture War”

I wish Disney would stay out of politics and stick to what they do best.”

A multitude of Disney fans across the country has shared similar sentiments. As Disney has become the primary source of opposition to Florida Governor Ron DeSantis, many are pleading that the entertainment giant, The Walt Disney Company, keep its name out of public affairs. The same individuals who take this stance also have attributed many of Disney’s recent film failures and perceived low Park attendance to the company’s “woke” agenda. With some evidence that Disney has no problem being a high voice of influence in socio-political issues and hot-button topics, traditionalists have loudly called for Bob Iger, Disney’s returning CEO, to get back to the basic of what Disney does best, entertainment.

In a recent interview with CNBC, Bob Iger, who recently extended his tenure for two more years after replacing Bob Chapek as Disney’s chief executive officer, sat down with David Faber of ‘Squawk Box.’ As Disney’s fight with Ron DeSantis over the governor’s signing of Florida’s Parental Rights in Education Act has been a heavy-hitting story, Faber wasted little time bringing up the seeming feud between Disney and Florida Governor Ron DeSantis. Referencing a recent support rally outside the gates at Walt Disney World, Iger was quick to disrupt any idea that he would not address the heated debate around Disney versus DeSantis. Instead, he condemned the actions of the neo-Nazi protest calling them “horrifying.”

However, in the same sentence, Iger added that he did not want The Walt Disney Company drawn into a “culture war.” He also reinforced his desire to avoid any further conflict when asked about Disney’s First Amendment case against DeSantis that was filed in April.

The last thing I want is for the company to be drawn into any culture wars. I’m not sure that was handled very well.”

As The Walt Disney Company has seen shares down, accompanied by the lowest holiday attendance to Walt Disney World in ten years, as well as multiple failing box office projects; Iger understands the internal issues. He recently noted that Disney would cut back on its overly saturated Marvel content.  Iger also understands that the company’s outspoken approach to social issues may be part of the problem. However, Iger was clear that he is not concerned about Disney, specifically Walt Disney World’s worth in the long run, and that he feels strongly that the company has a First Amendment right to voice its views and opinions, or as some would call it, remains “woke.”

The product has value.” Iger when discussing the worth of Walt Disney World who recently experienced notable attendance decrease.

Bob Iger

However, Bob Iger’s repetition regarding Disney’s involvement in a culture war is significant. Iger, being the company’s leader (again), is aware of the clear lines drawn in the sand by Disney. As Walt Disney World is one of the most popular vacation destinations in the world yet sits in one of most prominent conservative strongholds in the United States, Iger remains careful about their approach to media and entertainment. Intensifying a divide between conservative-thinking families who haven’t boycotted Disney and liberal-based ideology is bad for business. Not only would this continue a downward trend in demand for Disney vacations, but the tension would boil over into the Parks themselves. We’ve potentially already see this with increased violence and adherence for rules.

Bob iger disney

Some would call a shift from boisterous opposition of state legislation, which has led to an escalation in lawsuits, cowardice, while others would call the opposite pandering. Either way, with his fear or worry regarding Disney being drawn into future cultural combat, Iger is unwilling to pick an individual side without considering the other. His fears are warranted as the company becomes more expensive while cost-of-living continues rising. As more and more people can’t afford to visit Walt Disney World, future engagment in an all-out war with Florida’s governor would not serve the best interest of the entertainment company. It’s best to step back, reevaluate, and get back to the basics. Iger’s continued emphasis on avoiding unnecessary conflict with the state of Florida and shedding their “woke” first approach could be a step in that direction for Disney. 

Disney Extends CEO Bob Iger’s Contract Through 2026

The Walt Disney Company has announced the decision to extend CEO Bob Iger’s contract through December 31, 2026, meaning the so-called “boomerang CEO” hangs on.

Veteran Walt Disney Company employee and former Disney CEO Bob Iger retired on December 31, 2021, only to be reinstated less than 11 months later, following the removal of then-CEO Bob Chapek in November 2022. At the time of his reinstatement as CEO, Iger’s new contract was set to expire on December 31, 2023.

Since November, Iger has been tasked with righting the financial ship at the Disney Company, though another part of his responsibilities centered around assisting in the search for his successor and in mentoring that candidate before his departure. But recently, speculation about Disney keeping Iger on just a bit longer gave way to rumors about an announcement from Disney about Iger’s upcoming contract extension. (But then again, DisneyDining predicted such a move in April 2023.)

On Wednesday afternoon, Disney’s board announced that Iger’s contract has indeed been extended through December 31, 2026, adding an additional 24 months to the veteran CEO’s original plans to return to Disney in his former role. Disney’s formal announcement reads as follows:

The Walt Disney Company Board of Directors announced today that Robert A. Iger has agreed to continue to serve as Chief Executive Officer through December 31, 2026. In voting unanimously to extend Iger’s contract by two years, the independent members of the Board of Directors noted that Iger’s extension provides continuity of leadership during the company’s ongoing transformation and allows more time to execute a transition plan for CEO succession, which remains a priority for the Board.

“Time and again, Bob has shown an unparalleled ability to successfully transform Disney to drive future growth and financial returns, earning him a reputation as one of the world’s best CEOs,” said Mark G. Parker, Chairman, The Walt Disney Company. “Bob has once again set Disney on the right strategic path for ongoing value creation, and to ensure the successful completion of this transformation while also allowing ample time to position a new CEO for long-term success, the Board determined it is in the best interest of shareholders to extend his tenure, and he has agreed to our request to remain Chief Executive Officer through the end of 2026.”

disney ceo bob iger against red and yellow background

Since my return to Disney just seven months ago, I’ve examined virtually every facet of our businesses to fully understand the tremendous opportunities before us, as well as the challenges we’ve been facing from the broader economic environment and the tectonic shifts in our industry. On my first day back, we began making important and sometimes difficult decisions to address some existing structural and efficiency issues, and despite the challenges, I believe Disney’s long-term future is incredibly bright,” said Iger. “But there is more to accomplish before this transformative work is complete, and because I want to ensure Disney is strongly positioned when my successor takes the helm, I have agreed to the Board’s request to remain CEO for an additional two years. The importance of the succession process cannot be overstated, and as the Board continues to evaluate a highly qualified slate of internal and external candidates, I remain intensely focused on a successful transition.”

Iger returned to the company in November of 2022 after serving as CEO and Chairman from 2005 to 2020, and then as Executive Chairman and Chairman of the Board through 2021. Since returning as CEO, he has led a significant, enterprise-wide transformation to restore creativity to the center of the company and position Disney’s streaming business for sustained growth and profitability. Throughout his time as the company’s chief executive, Iger’s strategic vision has focused on three fundamental pillars: generating the best creative content possible, fostering innovation and utilizing the latest technology, and expanding into new markets across the globe.

Widely recognized as one of the world’s most consequential business leaders, Iger has built on Disney’s rich history of unforgettable storytelling with the acquisitions of Pixar (2006), Marvel (2009), Lucasfilm (2012), and 21st Century Fox (2019); the landmark opening of Disney’s first theme park and resort in mainland China, Shanghai Disney Resort; and the release of a number of record-setting films, including Marvel’s Avengers: Endgame, Disney’s Frozen and Frozen 2, and Marvel’s groundbreaking Black Panther. Always one to embrace new technology, Iger made Disney an industry leader through its creative content offerings across multiple new platforms, including the highly successful launch of the Disney+ streaming service in November 2019.

Since my return to Disney just seven months ago, I’ve examined virtually every facet of our businesses to fully understand the tremendous opportunities before us, as well as the challenges we’ve been facing from the broader economic environment and the tectonic shifts in our industry. On my first day back, we began making important and sometimes difficult decisions to address some existing structural and efficiency issues, and despite the challenges, I believe Disney’s long-term future is incredibly bright,” said Iger. “But there is more to accomplish before this transformative work is complete, and because I want to ensure Disney is strongly positioned when my successor takes the helm, I have agreed to the Board’s request to remain CEO for an additional two years. The importance of the succession process cannot be overstated, and as the Board continues to evaluate a highly qualified slate of internal and external candidates, I remain intensely focused on a successful transition.”

Iger returned to the company in November of 2022 after serving as CEO and Chairman from 2005 to 2020, and then as Executive Chairman and Chairman of the Board through 2021. Since returning as CEO, he has led a significant, enterprise-wide transformation to restore creativity to the center of the company and position Disney’s streaming business for sustained growth and profitability. Throughout his time as the company’s chief executive, Iger’s strategic vision has focused on three fundamental pillars: generating the best creative content possible, fostering innovation and utilizing the latest technology, and expanding into new markets across the globe.

Widely recognized as one of the world’s most consequential business leaders, Iger has built on Disney’s rich history of unforgettable storytelling with the acquisitions of Pixar (2006), Marvel (2009), Lucasfilm (2012), and 21st Century Fox (2019); the landmark opening of Disney’s first theme park and resort in mainland China, Shanghai Disney Resort; and the release of a number of record-setting films, including Marvel’s Avengers: Endgame, Disney’s Frozen and Frozen 2, and Marvel’s groundbreaking Black Panther. Always one to embrace new technology, Iger made Disney an industry leader through its creative content offerings across multiple new platforms, including the highly successful launch of the Disney+ streaming service in November 2019.

Disney Loses Nearly 95% of Its Classic Animation Material

Via DisDining.com

As the year 2024 draws closer, Disney fans have become increasingly vocal and concerned about The Walt Disney Company losing the rights to Mickey Mouse. But Disney has already lost almost 95% of the classic animation material from its feature films, such as Snow White and the Seven DwarfsFantasiaDumbo, and Bambi, and no amount of lobbying Congress could have stopped the loss.

One of the earliest versions of Disney’s Mickey Mouse is set to enter the public domain on January 1, 2024, ending a 96-year-long copyright held by the entertainment giant since Mickey’s first cartoon, Steamboat Willie, debuted in 1928. At that time, Mickey’s copyright was valid for 28 years, with the option for Disney to extend it for an additional 28 years, meaning that the original copyright for the Steamboat Willie character was set to enter the public domain at the end of 1983. Facing a loss of ownership, Disney sprang into action to save the beloved mouse from life outside The Walt Disney Company.

Disney wasted no time, bypassing any potential riff-raff and going directly to the United States government for help, lobbying Congress in an effort to hold on to Mickey a little longer. Whether federal lawmakers revered Disney as an untouchable entertainment powerhouse or the American people had elected a Congress full of Mickey fans, we’ll never know, but Congress happily extended Disney’s copyright by enacting the “Mickey Mouse Protection Act,” or, as it is formally known, the Copyright Term Extension Act.

Mickey Mouse's Copyright To Expire and Mickey will be Public Domain

Copyrights don’t last forever, though, and when the clock strikes midnight on January 1, 2024, Disney will be forced to say farewell to Steamboat Willie–though his trademark will remain.

But while there may still be some measure of hope for Mickey, there’s no hope for a loss of Disney property that has already occurred–one that never made the headlines as Steamboat Willie did. The Walt Disney Company has already suffered a tragic loss of some of its intellectual property, and the company has no one to blame but its very own animators.

In the 1930s and 1940s, when Walt Disney’s animators were tasked with hand-drawing the characters and backgrounds for some of the studio’s most beloved animated films, they embraced their work with great passion and dedication. They apparently enjoyed their work and had lots of fun on the clock. Back then, hand-drawn animation was a lengthy, labor-intensive process, but it was business as usual for those in that line of work. Because of this, animators were often very carefree–and sometimes careless–when it came to the fragile vintage art they were creating.

Arthur Stevens, a long-time Disney animator and director who worked on classic Disney animated films The Rescuers (1977), The Fox and the Hound (1981), and The Black Cauldron (1985), once explained that animators used to toss finished animation canvases on the floor when they were finished with them. Some animators even used the canvases to slide around on the floors. While the practice might have been good for team-building, it was entirely destructive for the artwork itself.

disney animation cel

It created multiple problems for the studio as well. Over the years, the carelessness of Disney’s animators resulted in the loss of nearly 95% of Disney’s vintage animation material–a loss from which recovery is not possible. In an effort to prevent further losses, experts now employ preservation techniques to care for the remaining material. The goal is to lower the risk of further damage and loss of Disney’s treasured and priceless artwork.

Fortunately for Disney fans of every age, all of the films for which the animation material was lost are still available in some physical and digital formats and can be streamed on the Disney+ platform.