For Disney’s Iger, a Bold Move That Will Define His Legacy
- 6 years ago
For Disney’s Iger, a Bold Move That Will Define His Legacy
The film business has not seen significant consolidation in generations — perhaps not since 1935, when 20th Century Pictures and Fox Film merged to form 20th Century Fox, going on to deliver classics like “How Green Was My Valley,” “The Sound of Music” and “Wall Street.” Now
that Disney is a content colossus, analysts expect a wave of Hollywood mergers, as companies like Viacom, CBS, Sony, Lionsgate and Metro-Goldwyn-Mayer look to gain scale
Mr. Iger intends to use the Fox businesses, which include the 20th Century Fox studio
and a chain of 22 regional sports networks, to supercharge a plan to reposition Disney.
While most investors and analysts cheered the merger, Doug Creutz, an analyst at Cowen and Company, wrote in a research note
that Disney’s bid to compete with Netflix was “a lost cause” given that tech companies “have deep pockets and no mandate to turn an economic profit in the near term.” Other analysts praised Mr. Murdoch for exiting Hollywood while criticizing Disney for buying traditional television assets — cable channels like FX and satellite television providers like Sky.
John Lasseter, the Pixar co-founder who became Disney’s top animation executive, said last month
that he would step aside for a six-month “sabbatical” because of behavioral “missteps.”
But Disney has mostly soared under Mr. Iger’s leadership, noted Mr. Gabelli, whose Gamco holds roughly $350 million in Fox shares.
Disney paid $52.4 billion for the bulk of Mr. Murdoch’s 21st Century Fox in a deal
with ripple effects from Hollywood and Silicon Valley to audiences worldwide.
The film business has not seen significant consolidation in generations — perhaps not since 1935, when 20th Century Pictures and Fox Film merged to form 20th Century Fox, going on to deliver classics like “How Green Was My Valley,” “The Sound of Music” and “Wall Street.” Now
that Disney is a content colossus, analysts expect a wave of Hollywood mergers, as companies like Viacom, CBS, Sony, Lionsgate and Metro-Goldwyn-Mayer look to gain scale
Mr. Iger intends to use the Fox businesses, which include the 20th Century Fox studio
and a chain of 22 regional sports networks, to supercharge a plan to reposition Disney.
While most investors and analysts cheered the merger, Doug Creutz, an analyst at Cowen and Company, wrote in a research note
that Disney’s bid to compete with Netflix was “a lost cause” given that tech companies “have deep pockets and no mandate to turn an economic profit in the near term.” Other analysts praised Mr. Murdoch for exiting Hollywood while criticizing Disney for buying traditional television assets — cable channels like FX and satellite television providers like Sky.
John Lasseter, the Pixar co-founder who became Disney’s top animation executive, said last month
that he would step aside for a six-month “sabbatical” because of behavioral “missteps.”
But Disney has mostly soared under Mr. Iger’s leadership, noted Mr. Gabelli, whose Gamco holds roughly $350 million in Fox shares.
Disney paid $52.4 billion for the bulk of Mr. Murdoch’s 21st Century Fox in a deal
with ripple effects from Hollywood and Silicon Valley to audiences worldwide.