Activist investor Nelson Peltz has sold off his entire stake in Disney (DIS) after the entertainment giant successfully fended off his proxy battle. Morningstar Senior Equity Analyst Matthew Dolgin joins Catalysts to discuss what this move means for the company and its future.
Dolgin notes that while current Disney CEO Bob Iger says the company is on the right track to develop from the linear media landscape to the streaming world, it will continue to remain a challenge industry-wide. He adds, "We weren't sure if Peltz had the answer either," saying the company's transition is a still "a work in progress."
"He identified several missed steps in the past, but those are easier to identify in retrospect. He didn't necessarily have solutions," Dolgin says of Peltz. He adds, "He thought that the company should do something with its non-sports entertainment linear network, so ABC, Disney Channel, FX, those types of stations. And we don't think that would have been the right move. They still make up about a third of the company's operating profit, so to get rid of that cash now, we don't think was the answer."
Dolgin says that bundling is key in the streaming era: "It actually ends up being the most cost-effective way for consumers." He explains that bundling delivers consumers more streamlined and efficient user experiences while providing great value.
He believes that Bob Iger is the right CEO to transform the business in the streaming era, saying, "The most important thing is that someone with the entertainment background... is critical to Disney's future."
About Yahoo Finance:
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
- Get the latest news and data at finance.yahoo.com
- Download the Yahoo Finance app on Apple ([ Ссылка ]) or Android ([ Ссылка ])
- Follow Yahoo Finance on social:
X: [ Ссылка ]
Instagram: [ Ссылка ]
TikTok: [ Ссылка ]
Facebook: [ Ссылка ]
LinkedIn: [ Ссылка ]
