A fight with one of Hollywood’s top stars went public last year afterScarlett Johansson sued Disney over her pay forBlack Widow. Johansson’s potential earnings were tied to the box office performance of the 2021 Marvel film,which the company released simultaneously in theatres and on its streaming service Disney+ for a $US30 rental.
“I am an optimist,and if I learned one thing from my years at Disney,it is that even in the face of uncertainty - perhaps especially in the face of uncertainty - our employees and Cast Members achieve the impossible,” Iger said in a memo to employees seen by Reuters.
Shareholder pressure
Some activist investors have mounted pressure on Disney this year,including Third Point,led by billionaire Daniel Loeb.
In August,Loeb began pushing for changes,including spinning off the ESPN sports television network and accelerating the planned takeover of Hulu from minority-owner Comcast Corp. The investor later tweeted that he better understood ESPN’s value to Disney.
In the days following its lacklustre earnings report,Trian Fund Management LP,co-founded by Nelson Peltz,earlier this month bought more than $US800 million worth of Disney stock,according to aWSJ report on Monday,citing people familiar with the matter.
Trian’s view is that Iger should not be back in control of the company,it said.
The stake,which is under the 5 per cent disclosure threshold,isn’t as large as Trian would like it to be and will likely grow subject to market conditions.
The fund is also seeking a seat on Disney’s board as it pushes the entertainment giant to make operational improvements and cut costs,according to the report.
Disney did not respond to a request for comment on Trian.
Iger’s returns
Iger exited Disney on a high note as the company led the battle against Netflix in the streaming wars. During his tenure,Disney made several key acquisitions,including Pixar Animation Studios,Marvel Entertainment and 21st Century Fox,and boosted its market capitalisation five-fold.
During his first tenure,Disney’s annualised shareholder returns were more than 14 per cent,well above its rival Comcast and the broader stock market.
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During this second tour,Iger has been charged with “setting Disney on a path to renewed growth” and working with the board to identify a successor,the company said.
The leadership change caught employees by surprise,two company sources said.
Shortly after Iger’s return was announced,Netflix co-founder Reed Hastings tweeted:“Ugh. I had been hoping Iger would run for President. He is amazing.”