During the earnings call on August 9, an analyst proposed a shocking solution to save Disney, and Bob Iger is “looking forward” to reading the thesis.
The Walt Disney Company just had its earnings call for the third financial quarter of the year, and Disney CEO Bob Iger revealed some interesting realities about the current state of the Mouse House. The chief executive officer of the Walt Disney Company commented on the current “disappointing” movie trend at the box office and shared that another price increase is coming to Disney.
Related: Is Disney About to Turn a Corner or Fall Off a Cliff?
Analyst Proposes Shocking Solution to Save the Walt Disney Company
At the end of the earnings call during the Q & A session, one analyst, Michael Nathanson of MoffettNathanson’s, asked Disney CEO Bob Iger, “Why not spin off Disney’s parks, Disney+, and its studio IP into a new company, leaving linear TV, ESPN+, Hulu (including Hulu + Live TV), and Disney+ Hotstar right where they are?”
Essentially, Nathanson was proposing that Disney be split into two companies. His premise was, “Why should investors take the bad with the good if they don’t have to?”
Related: Disney’s Latest Move Feels a Bit Dirty
Nathanson shared the thesis with the outlet IndieWire, wherein he explained his thesis. “We think there is a clear case to be made that under any scenario, Disney’s assets are worth materially more than its current enterprise value,” Nathanson wrote. He also added that Disney’s parks, cruises, and products division is being undervalued by both the current corporate structure and “the fact that media analysts, not leisure analysts, cover this stock.”
At the time of Nathanson’s question, Mr. Iger responded, “I’m not going to comment on the future structure of the company or the asset makeup of the company. As I’ve said, we’re looking at strategic options both for ESPN and for the linear networks, obviously addressing all the challenges that those businesses are facing. I’m looking forward to reading your thesis on it. Maybe you’ll give us some ideas about it.”
How Long is Bob Iger’s Contract with Disney?
Bob Iger returned to the Walt Disney Company as its CEO in November 2022 to salvage the mess left in the wake of former Disney CEO Bob Chapek’s tenure. He was initially supposed to have a two-year contract ending in 2024, however, recently, his contract was extended through 2026, giving the CEO more time to bring Disney back to its former glory.
