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- By Mariko Oi
- business reporter
Image source, fake images
Disney CEO Bob Iger has announced a series of moves that he hopes will bring “significant growth” to the entertainment giant.
Plans include streaming an exclusive version of Taylor Swift’s Eras Tour concert film on Disney+.
The company will also invest $1.5bn (£1.2bn) in Epic Games, the creator of the popular video game Fortnite.
Disney has been under pressure from activist investor Nelson Peltz, who has called for a restructuring of the business.
The American billionaire wants Disney to increase profits from its streaming business and improve the box office performance of its films. Last year, several Disney films, including those in its Marvel franchise, failed to boost the global box office.
In its results for the three months to December 31, Disney said its streaming service had lost 1.3 million subscribers following a price increase in October.
However, Disney still expects its streaming business to reach profitability in September of this year.
The deal with Epic means players will be able to interact with characters from Disney, Pixar, Marvel, Star Wars and Avatar.
“This marks Disney’s largest entry into gaming and offers significant opportunities for growth and expansion,” Iger said.
Together, the three American media giants own a wide range of sports rights, including the FIFA World Cup, Formula 1, the National Football League, the National Basketball Association and Major League Baseball.
Iger also revealed plans to buy back $3 billion worth of shares from investors. In its results, Disney reported flat revenue of $23.5 billion, but an increase in pretax earnings to $2.8 billion from $1.7 billion in the comparable quarter.
Asked if the ads would be enough to satisfy Peltz, who wants a seat on Disney’s board, Iger told CNBC: “The last thing we need right now is for an activist to distract us, in terms of our time and our energy, or activists who, frankly, have a completely different agenda and don’t understand our company, its assets, or even the essence of the Disney brand.
But a spokesman for Mr. Peltz’s Trian Fund Management firm said: “It’s déjà vu all over again. We saw this movie last year and didn’t like the ending.”
Disney shares rose more than 6% in extended trading in New York after the announcements.
He returned after the company’s stock price plummeted and Disney+ continued to make losses.
Separately, Disney faces a lawsuit from actress Gina Carano, who was fired in 2021 for a social media post in which she compared being a Republican to being Jewish during the Holocaust.
The lawsuit is funded by Elon Musk, who put out an open call on his X platform, formerly known as Twitter, for others to join the lawsuit.