WDW Pro

Bob Iger May Have Sneakily Changed Disney+ Investor Guidance

Added 2024-04-03 20:25:25 +0000 UTC

One of the big surprises of the day was when Bob Iger mentioned that all of Disney streaming combined was headed towards profitability by the fourth quarter of 2023. That's a huge change from the guidance we've had ever since Disney+ was first created. The goal has always been for Disney+ to be profitable all on its own by fiscal year 2024. Now, Iger is suggesting all of streaming combined will be the way they do that.

Only... that's total nonsense.

If Disney finishes their puchase of Hulu for between a total of $12b and $20b during the first three quarters of 2024, and then Disney uses Hulu profitability in the fourth quarter to claim all of streaming is profitable, that's craziness not even a politician would attempt. Not only would that indicate Disney+ failed to meet its guidance, but it would also come even as Disney has tremendously cut the cadence of content to only a pathetic drip for the service. Disney+ subscribers have essentially flatlined or fallen -- a clear truth made available by the fact Iger never mentioned subscriber levels today during the shareholders meeting.

Ultimately what this means is that if Disney+ doesn't match its forever guidance, no amount of smoke and mirrors will save Bob Iger. With Peltz not on the board, he has no scapegoat either. This will all be on Bob... and it could result in a majority takeover of the board by Trian in 2025. That's not pie-in-the-sky thinking either. Disney is in real trouble.

If you don't believe me... look at Netflix' stock today and Disney's stock in the same hours. How does that happen on the same day as your shareholders' meeting?

I guess only if you try to sneak one by investors and then take robot calls you picked for your own comfort.

Your pal,
Pro