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    Disney Heirs Line Up Against Nelson Peltz and Activist Investors

    Nine grandchildren of Walt and Roy Disney expressed support for Bob Iger and the company’s board, and criticized Nelson Peltz and others circling Disney.It’s a classic Disney movie plot: A family comes together to fight an enemy.Only this time it is happening in real life, with the grandchildren of Walt and Roy Disney, who founded the company in 1923, joining forces to oppose Nelson Peltz, the activist investor who is waging a proxy battle for board seats. The heirs — nine in total, including Abigail E. Disney, who has at times been a harsh critic of Robert A. Iger, Disney’s chief executive — publicly lined up behind Mr. Iger and the current Disney board on Thursday.“These activists must be defeated,” Roy P. Disney, 66, said by telephone. “They are not interested in preserving the Disney magic, but stripping it to the bone to make a quick profit for themselves.”In a statement, a spokesperson for Trian Partners, the investment firm which Mr. Peltz runs, said: “We love Disney and recognize building on its rich history of delighting loyal fans is essential to its future success. Trian invests in great companies like Disney and helps them grow and thrive for the long term — and we have the track record to prove it at companies like P&G, Heinz and Mondelez.”“These activists must be defeated,” Roy P. Disney said in an interview.Frederick M. Brown/Getty ImagesMr. Disney, a grandson of Roy Disney, has three siblings: Abigail, Susan Disney Lord and Tim Disney. In a letter to Disney shareholders, which was viewed by The New York Times, they call Mr. Peltz and a handful of other activist investors encircling Disney “wolves in sheep’s clothing.”“It is imperative that the strategy Bob Iger, his management team and the board of directors have implemented is not disrupted,” the letter says. Their cousins, grandchildren of Walt Disney, sent a letter of their own echoing those sentiments.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Disney Plans to Spend $60 Billion on Parks and Cruises

    Amid uncertainty for the company’s film and TV divisions, the investment over the next decade doubles the outlay in the last 10 years.Disney’s theme parks will generate an estimated $10 billion in profit this year, up from $2.2 billion a decade ago. Not bad for a 68-year-old business, especially considering the devastation wrought by the pandemic just a couple of years ago.But how much boom is left?Last month, when Robert A. Iger, Disney’s chief executive officer, singled out the parks division as “a key growth engine” on an earnings-related conference call, Wall Street furrowed its brow. Disneyland in Anaheim, Calif., has long been viewed as maxed out, with little room to expand. Walt Disney World near Orlando, Fla., has become a question mark, given that Mr. Iger has said the company’s legal battle with Florida’s governor, Ron DeSantis, could imperil $17 billion in planned expansion at the resort over the next decade. Disney’s overseas parks — aside from Tokyo Disney Resort, which it receives royalties from but does not own — have sometimes struggled to turn a profit.On Tuesday, Disney offered a clearer picture of the opportunity it sees, which can only be described as colossal: The company disclosed in a security filing that it planned to spend roughly $60 billion over the next decade to expand its domestic and international parks and to continue building Disney Cruise Line. That amount is double what Disney spent on parks and the cruise line over the past decade, which was itself a period of greatly increased investment.In the past decade, Disney has opened the Shanghai Disney Resort, more than doubled its cruise line capacity and added rides based on intellectual properties like “Star Wars,” “Guardians of the Galaxy,” “Tron,” Spider-Man, “Avatar” and “Toy Story” to its domestic parks. Disney has also poured money into its Paris and Hong Kong parks, with themed expansions tied to “Frozen” and other Disney films scheduled to open soon. Three more ocean liners are on the way, bringing the Disney fleet to eight ships, and Disney is nearing completion of a new port on a Bahamian island. (Disney already has one private island port.)If that is what $30 billion can buy, imagine what $60 billion might bring.“There are far fewer limits to our parks business than people think,” Mr. Iger said in an email.“The growth trajectory is very compelling if we do nothing beyond what we have already committed,” he continued, referring to attractions and ships that have been announced but are not yet operational. “By dramatically increasing our investment — building big, being ambitious, maintaining quality and high standards and using our most popular I.P. — it will be turbocharged.”Josh D’Amaro, chairman of the parks division, noted that films like “Coco” and “Zootopia” had not yet been incorporated into the parks in a meaningful way.Todd Anderson for The New York TimesDisney shares fell 3 percent on Tuesday on the news, to about $82. Analysts said some investors had been worried about the company’s ability to generate free cash flow at a time when its television business — traditionally a major generator of cash — has been undercut by streaming services.Disney already has a sizable amount of debt, largely because of the pandemic. The company suspended its semiannual shareholder dividend in 2020 to preserve cash, but is expected to restart dividend payments later this year.“We’re incredibly mindful of the financial underpinning of the company, the need to continue to grow in terms of bottom line, the need to invest wisely so that we’re increasing the returns on invested capital, and the need to maintain a balance sheet, for a variety of reasons,” Mr. Iger said on Tuesday afternoon in a blog post.Disney is expanding the investment after a stretch of trouble in almost all its divisions. Cable television, including ESPN, has become a shadow of its former self, the result of cord cutting, advertising weakness and rising sports programming costs. Disney had a disappointing summer at the box office, with movies like “Indiana Jones and the Dial of Destiny” and “Haunted Mansion” selling sharply fewer tickets than anticipated. The company’s Disney+ streaming service continues to lose money; Mr. Iger has said it will be profitable by fall 2024, but some investors are skeptical.In contrast, Disney’s parks and cruise business has been a bright spot, in many ways propping up the whole company. In the most recent quarter, Disney Parks, Experiences and Products generated $2.4 billion in operating income, an 11 percent increase from a year earlier. Disney Media and Entertainment Distribution had $1.1 billion in operating profit, an 18 percent decline.Spending per guest at Disney parks has increased 42 percent since 2019, in part because of higher prices for tickets, food, merchandise and hotel rooms.An attraction based on “Moana” at Disney World is among those that have already been announced but are not yet open to the public.Todd Anderson for The New York TimesStill, increased investment in theme parks brings increased risk. It is a business that will always be sensitive to factors beyond Disney’s control: swings in the economy, gas prices, hurricanes, earthquakes, tension between the United States and China. Disney has greatly increased security, deploying undercover guards and installing metal detectors, but these teeming resorts — Disney parks attracted an estimated 121 million visitors last year — could become ghost towns if a violent event took place.Josh D’Amaro, chairman of Disney Parks, Experiences and Products, said people who focused on such risks overlooked the resilience of theme park fans. He noted that customers had come flooding back when Disney parks reopened during the pandemic.“Every time there has been a moment of crisis or concern, we have managed to bounce back faster than anyone expected,” he said.Mr. D’Amaro declined to specify how the company planned to spend the $60 billion. But he gave hints, noting that Disney movies like “Coco,” “Zootopia,” “Encanto” and others had not yet been incorporated into the company’s parks in meaningful ways.“Imagine bringing Wakanda to life,” he said, referring to the fictional “Black Panther” kingdom. “In terms of bringing the latest Disney-Marvel-Pixar intellectual property to the parks, we haven’t come close to scratching the surface. And we have learned that incorporating Disney I.P. increases the return on investment significantly.”A rendering of an area adjacent to Disneyland in California that Disney wants to redevelop, adding rides based on movies like “Avatar.”DisneyDisney owns 1,000 undeveloped acres across its existing theme park resorts, Mr. D’Amaro noted. (For comparison, he said, that’s the size of seven Disneylands.) One of the biggest areas of opportunity, he said, involves the original Disneyland, which opened in 1955. If the company can persuade the City of Anaheim to change a plan, adopted in the 1990s, that limits where hotels, parking lots and attractions can be built, Disney intends to redevelop land adjacent to Disneyland, greatly expanding capacity. Disney also plans to turn a parking area south of the park into a themed shopping, dining and hotel district.Disney released a 17,000-page environmental impact study for the project last week. The Anaheim City Council is expected to vote on the changes in mid- to late 2024.How much Disney invests in Florida may depend on the courts, where the company is battling Mr. DeSantis and his allies for control over Disney World’s growth plan. Angered over Disney’s criticism of a Florida education law, Mr. DeSantis in April ended the company’s long-held ability to self-govern its 25,000-acre resort as if it were a county. Disney maintains that prior contracts preserve its ability to control development, however.“We want to keep growing and investing and have ambitious plans in Florida,” Mr. D’Amaro said. “For the benefit of our guests, our cast members and the economy of central Florida, we hope the conditions will be there for us to do so.” He declined to comment further.At the moment, Disney does not plan to build parks in new countries or cities. (In the past, the company looked at building a park in India, for instance, and expanding beyond Hong Kong and Shanghai in China.) Rather, the company will focus on developing new ports for its ships.Starting in 2025, a new cruise ship — the biggest in Disney’s fleet so far, with space for more than 6,000 guests — will be based in Singapore. Disney’s ships have grown increasingly themed, with characters and artwork from franchises like “Frozen,” “Star Wars” and Marvel’s Avengers incorporated into restaurants and entertainment zones.“It’s like bringing a theme park to a new part of the world,” Mr. D’Amaro said of Disney Cruise Line, which has recently been booked to 98 percent of capacity. More

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    Disney Is Bringing Employees Back Four Days a Week

    The C.E.O., Robert A. Iger, said in a memo that he thought the move would benefit the company’s culture and creativity.Starting on March 1, the Walt Disney Company will require employees to report to the office four days a week, a relatively strict policy among large companies.Robert A. Iger, who came out of retirement in November to retake Disney’s chief executive reins, said in a memo to employees on Monday that a return to mostly in-person work — for the first time in nearly three years — would benefit the company’s culture in general and movie and TV creative processes in particular. Since his return, Mr. Iger has been trying to boost morale and galvanize Disney’s creative engines.“As you’ve heard me say many times, creativity is the heart and soul of who we are and what we do at Disney,” Mr. Iger said in the memo, which was viewed by The New York Times. “And in a creative business like ours, nothing can replace the ability to connect, observe and create with peers that comes from being physically together.”The memo said that employees would likely be asked to work from Disney offices Monday through Thursday. “Stay tuned for additional details,” Mr. Iger said.The shift did not come as a complete surprise to Disney employees; Mr. Iger signaled that a change was coming during a Nov. 28 meeting with them. CNBC earlier reported on his memo on Monday.Disney has required most employees to report to the office three days a week for roughly the last year, in line with most major media companies. NBCUniversal has a three-days-a-week policy (Tuesday, Wednesday and Thursday), while Warner Bros. Discovery requires three days between Monday and Thursday.Mr. Iger’s return-to-work edict was accompanied by praise for a wide array of Disney divisions, including Broadway productions and Imagineering, the company’s theme park design unit. Bob Chapek, who was chief executive from 2020 until he was fired in November, sometimes left certain groups in the company feeling overlooked or underappreciated.“I would be remiss not to mention how the ESPN team expertly handled Damar Hamlin’s tragic injury, showing grace under pressure, and presenting the facts to viewers with utter respect and sensitivity,” Mr. Iger said in the memo, referring to the Buffalo Bills player who collapsed and went into cardiac arrest on “Monday Night Football” on Jan. 2.Mr. Iger is also working on a sweeping restructuring involving the flow of content to Disney’s streaming services. He has also signaled that cost cutting lies ahead, including potential layoffs. More

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    Disney, Built on Fairy Tales and Fantasy, Confronts the Real World

    The entertainment behemoth spent decades avoiding even the whiff of controversy. But it has increasingly been drawn into the partisan political fray.Since its founding in 1923, Disney has stood alone in Hollywood in one fundamental way: Its family-friendly movies, television shows and theme park rides, at least in theory, have always been aimed at everybody, with potential political and cultural pitfalls zealously avoided.The Disney brand is about wishing on stars and finding true love and living happily ever after. In case the fairy tale castles are too subtle, Disney theme parks outright promise an escape from reality with welcome signs that read, “Here you leave today and enter the world of yesterday, tomorrow and fantasy.”Lately, however, real world ugliness has been creeping into the Magic Kingdom. In this hyperpartisan moment, both sides of the political divide have been pounding on Disney, endangering one of the world’s best-known brands — one that, for many, symbolizes America itself — as it tries to navigate a rapidly changing entertainment industry.In some cases, Disney has willingly waded into cultural issues. Last summer, to applause from progressives and snarls from the far right, Disney decided to make loudspeaker announcements at its theme parks gender neutral, removing “ladies and gentlemen, boys and girls” in favor of “dreamers of all ages.” But the entertainment giant has also found itself dragged into the fray, as with the recent imbroglio over a new Florida law that among many things restricts classroom instruction through third grade on sexual orientation and gender identity and has been labeled by opponents as “Don’t Say Gay.”At first, Disney tried not to take a side on the legislation, at least publicly, which prompted an employee revolt. Disney then aggressively denounced the bill — only to find itself in the cross hairs of Fox News hosts and Florida’s governor, Ron DeSantis, who sent a fund-raising email to supporters saying that “Woke Disney” had “lost any moral authority to tell you what to do.” Florida lawmakers began threatening to revoke a 55-year-old law that enables Walt Disney World to essentially function as its own municipal government. (Disney had already been at odds with the governor on pandemic issues like a vaccine mandate for employees.)In trying to offend no one, Disney had seemingly lost everyone.Disney employees and supporters, at a park in Burbank, Calif., last month, protested Disney’s reaction to a new law in Florida.J. Emilio Flores for The New York Times“The mission for the Disney brand has always been really clear: Do nothing that might upset or confuse the family audience,” said Martin Kaplan, the Norman Lear professor of entertainment, media and society at the University of Southern California and a former Walt Disney Studios executive. “Fun for all. Nothing objectionable. Let’s all be transformed by the magic wand. But we are so divided today, so revved up, that even Disney is having a hard time bringing us together.”Avoiding socially divisive topics, of course, in itself reflects a certain worldview. The Walt Disney Company’s namesake founder, after all, was an anti-union conservative. Main Street U.S.A. patriotism is on prominent display at Disney’s theme parks. The traditional Christmas story is told each December at Disney World in Florida and Disneyland in California with Candlelight Processional events, Bible verses and all.It took the company until 2009 to introduce a Black princess.But in recent years, there has been a noticeable change. Robert A. Iger, who served as chief executive from 2005 to 2020, pushed the world’s largest entertainment company to emphasize diverse casting and storytelling. As he said at Disney’s 2017 shareholder meeting, referring to inclusion and equality: “We can take those values, which we deem important societally, and actually change people’s behavior — get people to be more accepting of the multiple differences and cultures and races and all other facets of our lives and our people.”In essence, entertainment as advocacy.Mr. Iger was the one who pushed forward the global blockbuster “Black Panther,” which had an almost entirely Black cast and a powerful Afrocentric story line. Under his tenure, Disney refocused the “Star Wars” franchise around female characters. A parade of animated movies (“Moana,” “Coco,” “Raya and the Last Dragon,” “Soul,” “Encanto”) showcased a wide variety of races, cultures and ethnicities.Read More on the Walt Disney CompanyDisney World: Celebrations for the theme park’s 50th anniversary are underway. The company hopes they will help with its pandemic recovery.‘Don’t Say Gay’ Bill: Amid employee walkouts and official statements, Disney has become entangled in a battle over the Florida legislation.Streaming: As it faces pressure to keep its streaming business growing, the company announced a cheaper, ad-supported version of Disney+.A Documentary: A movie directed by the granddaughter of one of the Disney founders offered a harsh portrait of pay inequality at the company.The result, for the most part, has been one hit after another. But a swath of Disney’s audience has pushed back.Robert A. Iger, center, Disney’s chief executive from 2005 to 2020, pushed the company to emphasize diverse casting and storytelling.Gareth Cattermole/Getty Images“Eternals,” a $200 million Disney-Marvel movie, was “review bombed” in the fall because it depicted a gay superhero kissing his husband, with online trolls flooding the Internet Movie Database with hundreds of homophobic one-star reviews. In January, Disney was accused by the actor Peter Dinklage and others of trafficking in stereotypes by moving forward with a live-action “Snow White” movie — until it was revealed that the company planned to replace the seven dwarfs with digitally created “magical creatures,” which, in turn, prompted complaints by others about the “erasure” of people with dwarfism.Disney executives tend to dismiss such incidents as tempests in teapots: trending today, replaced by a new complaint tomorrow. But even moderate online storms can be a distraction inside the company. Meetings are held about how and whether to respond; fretful talent partners must be reassured.As Disney prepared to introduce its streaming service in 2019, it began an extensive review of its film library. As part of the initiative, called Stories Matter, Disney added disclaimers to content that the company determined included “negative depictions or mistreatment of people or cultures.” Examples included episodes of “The Muppet Show” from the 1970s and the 1941 version of “Dumbo.”“These stereotypes were wrong then and are wrong now,” the disclaimers read.The Stories Matter team privately flagged other characters as potentially problematic, with the findings distributed to senior Disney leaders, according to two current Disney executives, who spoke on the condition of anonymity to discuss confidential information. Ursula, the villainous sea witch from “The Little Mermaid” (1989), was one. Her dark color palette (lavender skin, black legs) could be viewed through a racial lens, the Stories Matter team cautioned; she is also a “queer coded” character, with mannerisms inspired in part by those of a real-life drag queen.Tinker Bell was marked for caution because she is “body conscious” and jealous of Peter Pan’s attention, according to the executives, while Captain Hook could expose Disney to accusations of discrimination or prejudice against individuals with disabilities because he is a villain.At least some people inside Disney are concerned that such sensitivities go too far. One of the executives worried that looking at artistic creations through a “politically correct filter” could chill creativity.Disney declined to comment for this article.All of this comes at a perilous time for Disney, which is racing to remake itself as a streaming titan as technology giants like Amazon and Apple move deeper into the entertainment business and traditional cable networks like Disney-owned ESPN slowly wither. Disney is also coping with a disruptive changing of the guard, with Mr. Iger stepping down as executive chairman in December.Mr. Iger occasionally spoke out on hot-button political issues during his time as chief executive. His successor, Bob Chapek, decided (with backing from the Disney board) to avoid weighing in on state political battles. Disney lobbyists would continue to work behind the scenes, however, as they did with the Florida legislation.Bob Chapek, Disney’s chief executive, was met with employee protests and then a right-wing backlash after he avoided publicly weighing in on the new Florida law.Chris Pizzello/Invision, via Associated Press“Our diverse stories are our corporate statements — and they are more powerful than any tweet or lobbying effort,” Mr. Chapek wrote in an email to Disney employees on March 7. “I firmly believe that our ability to tell such stories — and have them received with open eyes, ears and hearts — would be diminished if our company were to become a political football in any debate.”In the case of Florida, the approach backfired, first with employee protests and a walkout and then with a right-wing backlash. The Fox News host Tucker Carlson said Disney had “a sexual agenda for 6-year-olds” and was “creepy as hell.” Tweets with the #boycottDisney hashtag accumulated millions of impressions between March 28 and April 3, according to ListenFirst, an analytics firm.Disney executives have long held the position that boycotts have a minimal impact on the company’s business, if any. Disney is such a behemoth (it generates roughly $70 billion in annual revenue) that avoiding its products is almost impossible.But the same vast reach that makes Disney hard to boycott also makes it an increasingly visible part of the country’s cultural debates. Hardly a month goes by without some kind of dust-up, usually with sexual identity and gender as the prompt.On “Muppet Babies” last summer, Gonzo wore a princess gown to a party, defying Miss Piggy’s request that boys dress as knights.Disney ChannelLast summer, “Muppet Babies,” a Disney Junior series for children ages 3 to 8, gently explored gender identity. Gonzo donned a gown, defying a directive from Miss Piggy “that the girls come as princesses and the boys come as knights.” Out magazine wrote that the episode “just sent a powerful message of love and acceptance to gender-variant kids everywhere!” And a far-right pundit blasted Disney for “pushing the trans agenda” on children, starting an online brush fire.Around the same time, some L.G.B.T.Q. advocates were criticizing Disney over “Loki,” a Disney+ superhero show. In the third episode of “Loki,” the title character briefly acknowledged for the first time onscreen what comic fans had long known: He is bisexual. But the blink-and-you-missed-it handling of the information angered some prominent members of the L.G.B.T.Q. community. “It’s, like, one word,” Russell T. Davies, a British screenwriter (“Queer as Folk”), said during a panel discussion at the time. “It’s a ridiculous, craven, feeble gesture.”The Disney+ show “Loki,” starring Tom Hiddleston, was criticized for the way it handled the title character’s brief acknowledgement that he is bisexual.Marvel/Disney+The fighting will undoubtedly continue: The Disney-Pixar film “Lightyear,” set for release in June, depicts a loving lesbian couple, while “Thor: Love and Thunder,” arriving in July, will showcase a major L.G.B.T.Q. character.Last month, when Disney held its most-recent shareholder meeting, Mr. Chapek was put on the spot by shareholders from the political left and right.One person called Disney to task for contributions to legislators who have championed bills that restrict voting and reproductive rights. Mr. Chapek said that Disney gave money to “both sides of the aisle” and that it was reassessing its donation policies. (He subsequently paused all contributions in Florida.) Another representative for a shareholder advocacy group then took the microphone and noted that “Disney from its very inception has always represented a safe haven for children,” before veering into homophobic and transphobic comments and asking Mr. Chapek to “ditch the politicization and gender ideology.”In response, Mr. Chapek noted the contrasting shareholder concerns. “I think all the participants on today’s call can see how difficult it is to try to thread the needle between the extreme polarization of political viewpoints,” he said.“What we want Disney to be is a place where people can come together,” he continued. “My opinion is that, when someone walks down Main Street and comes in the gates of our parks, they put their differences aside and look at what they have as a shared belief — a shared belief of Disney magic, hopes, dreams and imagination.” More