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Disney boss bets future on Taylor Swi

and Fortnite
By Mariko Oi
Business reporter

8 February 2024, 02:01 GMT

Updated 1 hour ago

GETTY IMAGES

Disney's chief executive, Bob Iger, has announced a series of moves which he
hopes will bring "significant growth" to the entertainment giant.

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 The plans include streaming an exclusive version of Taylor Swi's Eras Tour concert
movie on Disney+.

The firm will also invest $1.5bn (£1.2bn) in Epic Games, the maker of the hugely
popular video game Fortnite.

Disney has been under pressure from activist investor Nelson Peltz, who has called
for a shakeup of the business.

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The US billionaire wants Disney to boost profits from its streaming business as well
as improve the box office performance of its films. Last year, a number of Disney
films, including those from its Marvel franchise, failed to ignite the global box office.

In its results for the three months to 31 December, Disney said that its streaming
service had shed 1.3 million subscribers following a price increase in October.

However, Disney still expects its streaming business to reach profitability by

September this year.

The deal with Epic means gamers will be able to interact with Disney, Pixar, Marvel,
Star Wars and Avatar characters.

"This marks Disney's biggest entry ever into the world of games and offers
significant opportunities for growth and expansion," Mr Iger said.

The announcements come a day aer the company unveiled a joint venture with
rivals Fox and Warner Bros. Discovery to launch a new sports streaming platform.

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 Together, the three US media giants own a wide range of sports rights including the
FIFA World Cup, Formula 1, National Football League, National Basketball
Association and Major League Baseball.

Mr Iger also unveiled plans to buy back $3bn worth of shares from investors. In its
results, Disney reported flat revenues at $23.5bn but a rise in pre-tax profits to
$2.8bn from $1.7bn in the comparable quarter.

Asked whether the announcements would be enough to satisfy Mr Peltz, who wants
a seat on Disney's board, Mr Iger told CNBC: "The last thing that we need right now
is to be distracted in terms of our time, our energy, by an activist or activists that,
frankly, have a completely different agenda, and don't understand our company, its
assets, even the essence of the Disney brand."

But a spokesperson for Mr Peltz's Trian Fund Management firm said: "It's déjà vu all
over again. We saw this movie last year and we didn't like the ending."

Disney shares rose by more than 6% higher in extended trading in New York aer
the announcements.

Mr Iger previously headed Disney for 15 years before retiring at the end of 2021 but
made a shock return to the firm less than a year aer stepping down.

He was brought back aer the company's share price plummeted and Disney+
continued to make a loss.

Separately, Disney is facing a lawsuit from actress Gina Carano who was sacked in
2021 over a social media post in which she compared being a Republican to being a
Jew during the Holocaust.

The lawsuit is being funded by Elon Musk, who made an open call on his platform X,
formerly known as Twitter, for others to join the suit.

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