Three Areas Peltz Might Hammer Disney on Today

It's the big day for Trian Partners, Nelson Peltz and Jay Rasulo. You might also say it's an interesting day for folks like Ike Perlmutter and Elon Musk as well. As opposed to the Bob Iger conference discussion where no questions were allowed from the audience, Peltz is going fully transparent with a Q&A that could be very broad in scope and scale.

So what are some of the areas that Peltz might strike significant blows against Disney? After the white paper, we've actually had a number of issues which have landed and could surface during the townhall today. Let's take a look at them and their significance.

1. Apple Bans Fortnite

Disney has always wanted a very cosey relationship with Apple. But that may not be reciprocated lately in the ways that Bob Iger had hoped for. Apple resurrected the career of John Lasseter, now contracted to work with Netflix. His new studio purged a tremendous number of Disney creatives who felt misaligned with the new values of Mickey. And, as a result, now those creatives are essentially working on a next generation of animated classics which will be hosted by Disney's worst enemy in streaming. Netflix dominates Disney... and there's no indication that will change.

But Apple struck an even more harsh chord when they, once again, banned Fortnite from their devices. This comes on the heels of Disney spending $1.5 billion to get back into the gaming industry via Epic Games and Fortnite. With Apple making this stand, they're essentially banning Disney's biggest (by far) gaming efforts. That's a huge slap in the face to Disney... and one Peltz is likely to target.

2. The Cancelled Mandalorian Video Game

Since the Disney earnings call, we've found out that the leaked Mandalorian tie-in game from EA was not only cancelled... but EA has gone so far as to publicly state they're moving away from third party IP licensing deals. They insulted those deals, indicating that they're not doing well. And who are they talking about? Well, Star Wars has to be a very big one.

It's odd that The Mandalorian game was leaked then cancelled just before the earnings call and then just after the stock pop. If Peltz wants to key in on that, it's yet another example of a promised future that has no reality. Worse, it may indicate that Disney keeps making promises for projects they actually know have no chance of happening. Beyond Big Thunder Mountain anyone?

3. No Plans for Disney Parks Future

During the latest interview with Bob Iger, he was specifically asked about the future of Disney Parks and their expansions. But rather than saying what they will do, Iger waxed poetic about how much real estate the company owns. "Why we have enough room for seven more theme parks," he declared. The astute noticed that wasn't new information -- we know how much land Disney has. He might as well have said, "Why we have enough room for twenty-seven shopping centers." Both have as much chance of being brought to fruition.

Iger's sidestep of declaring any real plans for the Disney Parks is yet another place for Peltz to nail the CEO. Having already called Disney World "long in the tooth" from his most recent visit, Peltz needs to hammer Iger on the fact that Disney World drives an entire third of all the company's revenues... and yet it's investments / outcomes are terrible. Outside of Toy Story Land and Pandora, what new additions in the last twenty years (actual cap ex additions) have greatly improved the park experience? Worse, the company seems intent on reimagining rides and experiences in ways that aren't improvements at all -- often they're downgrades -- and they do so to great expense!

It's time for Peltz to call out the blue sky nonsense. It's far past time that nobody get excited when Disney makes a theme park announcement until literally when the project is done. Otherwise, you wind up cheering on Tiana's Septic Tank Adventure and Epcot's SoCal Urban Redevelopment. 

But let me know what you think. Where do you believe Nelson Peltz should go with him townhall today? What answers would you like to hear from the leader of the Proxy War?

Your pal,
Pro