Disney Announces Strategic Moves to Drive Growth
By [Journalist Name]
Business Reporter
February 8, 2024
Updated 3 hours ago
Disney’s Strategic Growth Roadmap
Disney’s chief executive, Bob Iger, has announced a series of strategic moves in an effort to bring “significant growth” to the entertainment giant.
Exclusive Taylor Swift Concert Movie Streaming on Disney+
As part of the plans, Disney will be streaming an exclusive version of Taylor Swift’s Eras Tour concert movie on its streaming platform, Disney+.
$1.5 Billion Investment in Epic Games
Disney will also be investing $1.5 billion (£1.2 billion) in Epic Games, the maker of the highly popular video game, Fortnite.
Activist Investor Pressure
Under pressure from activist investor Nelson Peltz, Disney is looking to make changes within the company. Peltz has called for a shakeup at Disney to boost profits from its streaming business and improve the box office performance of its films.
Challenges and Expectations
Disney’s streaming service experienced a decline of 1.3 million subscribers following a price increase in October. Despite this setback, Disney still anticipates its streaming business to reach profitability by September this year.
New Opportunities in Gaming
The collaboration with Epic Games enables Disney to engage gamers and integrate its iconic characters from Disney, Pixar, Marvel, Star Wars, and Avatar into the gaming realm. According to Mr. Iger, this marks Disney’s biggest entry into the gaming world and offers significant opportunities for growth and expansion.
New Buyback Program
Disney’s CEO, Bob Iger, also unveiled plans to buy back $3 billion worth of shares from investors. In its latest financial results, Disney reported flat revenues at $23.5 billion, but saw a rise in pre-tax profits from $1.7 billion to $2.8 billion in the corresponding quarter.
Responding to Activist Investor Nelson Peltz
When asked if these announcements would satisfy Nelson Peltz, Mr. Iger stated that the company must stay focused and not allow itself to be distracted by activists with different agendas who do not truly understand the company and its brand.
Market Reaction
Following the announcements, Disney’s share price rose by more than 6% in extended trading in New York.
Facing a Lawsuit
Separately, Disney is currently facing a lawsuit from actress Gina Carano, who was fired in 2021 after a controversial social media post. The lawsuit is being funded by Elon Musk, who made a public call for others to join the suit on his platform X.
