Disney’s (DIS) annual shareholder meeting on Wednesday brought a victory for the company’s board nominees including CEO Bob Iger after a months-long proxy battle with activist investors and offered key details on the entertainment giant’s streaming strategy and parks segment.
Disney Beats Activist Investors in Board Battle
Shareholders voted to elect all 12 board members nominated by Disney, including CEO Bob Iger, bringing an end to a months-long proxy battle between the company and activist investors.
The Disney-recommended board was elected by “a substantial margin,” while Nelson Peltz and Jay Rasulo nominated by the Trian Group and the three candidates nominated by Blackwells Group were not elected.
“Now that this distracting proxy contest is behind us, we’re here to focus 100% on our most important priorities, growth and value creation for our shareholders, and creative excellence for our consumers,” Iger said.
Streaming To Return Profit by End of Fiscal 2024
Iger reported that Disney’s streaming segment is on track to reach profitability by the end of the 2024 fiscal year.
The company recently combined Disney+ and Hulu, expanding the company’s streaming library, which could allow Disney to better compete with other streaming giants like Netflix (NFLX).
Disney is also working on a sports package through ESPN in a partnership with Warner Bros. Discovery (WBD) and Fox (FOXA). The partnership will offer “a new streaming service that brings together our collective portfolios of sports channels” with a standalone digital destination to come in the fall of 2025.
“With Disney+, Hulu, and ESPN+ and with their combined power I think Disney has a real chance to become the ultimate streaming destination for consumers,” Iger told shareholders.
Analysts have indicated that Disney could be poised to outpace peers as it consolidates Disney+ and Hulu and expands ESPN offerings.
Expanding Parks To Realize Experiences Growth
Disney also provided shareholders with details about upcoming expansions in its parks, part of its experience business which Iger noted is a “key growth business and a clear differentiator for the company.”
“We’re turbocharging growth in our experiences business, including our domestic and international parks, and our cruise lines are executing at a rapid pace,” Iger said.
The company reported that it is working to bring a Frozen theme to its Paris park and a “Fantasy Springs” to its Tokyo location. Iger also offered shareholders a first look at an Avatar-themed attraction coming to Disneyland in Anaheim, California.
Disney shares were 2.5% lower at $119.76 as of about 3 p.m. ET Wednesday, though they’ve gained more than 31% year to date.