Today was Disney’s Annual Shareholders Meeting, and without an activist investor like Nelson Peltz driving the narrative it was pretty chill.
Here are some takeaways.
Chairman of the Board James Gorman: Succession Is In His Control
Chairman of the Board James Gorman kicked off the meeting, and it’s worth reminding everyone that he is running Disney’s search for its next CEO. Gorman comes from Morgan Stanley, which had a smooth succession process. Now, Gorman is going to try to bring that succession magic to Disney. Gorman seemed quite proud of the company so far and he also had some cool Disney books in the background. So good on him, the details matter.
Bob Iger announces ‘Coco 2′
Disney CEO Bob Iger announced Coco 2 during today’s meeting. This was a huge announcement and adds another sequel to Pixar’s arsenal. It also confirms the theory that Adrian Molina was moved off Elio because Coco 2 was in development.
“While the film is just in the initial stages, we know it will be full of humor, heart, and adventure,” said Iger. “And we can’t wait to share more soon.”
Coco 2 reunites the team behind the original film, including director Lee Unkrich (Coco, Toy Story 3) and co-director Adrian Molina (Coco). Mark Nielsen (Toy Story 4, Inside Out 2) will produce.
Coco is having a moment. An attraction is in development at Disney California Adventure, it will begin construction in 2026. Some have compared the upcoming Coco attraction to the likes of Haunted Mansion and Pirates of the Caribbean.
Bob Iger on Disney Experiences: “We have more projects underway around the world than at anytime in our history.”
“Right now, we have more projects underway around the world than at any time in our history.” — Bob Iger
Bob Iger remains bullish on Disney Experiences. Iger listed all the major projects happening at the division including Magic Kingdom undergoing its largest expansion ever (including a new area inspired by Cars and the much-anticipated Villains-themed land), A Monsters Inc. themed land coming to Hollywood Studios (featuring Disney’s first-ever vertical lift coaster), a new Tropical Americas land coming to Disney’s Animal Kingdom (with attractions based on Encanto and Indiana Jones), doubling the size of Avengers Campus at Disney California Adventure, and much more.
Bob Iger also showed off the model of The Lion King attraction that will be coming to Disney Adventure World at Disneyland Paris Resort.
Iger also mentioned that the turbocharging of Disney Experiences is going to lead to a positive economic impact and will create thousands of new jobs in Florida and California. Iger also touted Disney Cruise Line’s growth and expansion. He also mentioned how Disney Cruise Line will allow Disney to “double our capacity to reach millions more people around the world.”
None of the shareholders’ proposals passed, and the Disney Board remains the same as expected
Last year there was a chance the Disney Board would look different. This year there wasn’t much doubt everything would stay pat. Plus the three shareholders’ proposals all failed. All of Disney’s proposals passed. The proposals that Disney shareholders overwhelmingly rejected are:
Bob Iger’s Q&A this year was enlightening: Stock Price, Disney Park Affordability, Disney Resort Expansion, Epic Games, AI, and Figment?!?!?!
Bob Iger answered a variety of questions!
The first question was on creativity. Iger called creativity the “center of the Disney universe.” Iger also cited that upon his return he reorganized the company to give the creatives accountability again. Iger then highlighted all the recent box office successes and the creative/commercial wins on the television side. Iger believes Disney’s creativity is soaring with titles like Lilo & Stitch, Freakier Friday, The Amateur, The Fantastic Four, *Avatar: Fire and Ash,*Zootopia 2, Toy Story 5, The Mandalorian and Grogu, Avengers: Doomsday, Avengers: Secret Wars, Alien: Earth, Andor, Handmaid’s Tale, Only Murders in the Building, Abbott Elementary, and more.
Iger was then asked about his strategic vision and boosting the stock price. Iger reiterated all of Disney’s strategic initiatives from films to the parks to streaming. Iger is optimistic about their opportunity to grow and improve shareholder value. I’m sure Iger wants Wall Street to view Disney as a tech company, more on that in my newsletter this month.
Iger was then questioned about the affordability and increasing capacity at the domestic Disney Parks. Iger says more capacity is on the way with the various expansions. Iger also said they are finding more ways to make their experiences more accessible and affordable. Iger doesn’t seem concerned about the business. Iger mentioned the value in comparison to other entertainment forms like concerts.
Then we got a fascinating question that we don’t typically get during these events.
“Are you considering expanding the Disney Parks to new strategic locations internationally?”
Coming off the heels of D23 Brazil and the Disney Cruise Line expansion, I was quite curious to see how Iger was going to tackle this one. Iger said Disney is focused on expanding in the places they currently operate. Iger then cited expanding the Disney Cruise Line and how it will reach new markets. I think fans are craving a brand new theme park from Disney and it seems like if that were to happen it would be at a resort they currently operate and not in an entirely new market. For what it’s worth, I’ve done a lot of research to see if there is a market that makes sense for Disney’s seventh resort destination, and there isn’t an ideal market just yet.
Iger was then asked about the commercial benefits of the Disney-Epic Games universe. Iger couldn’t reveal a release window for the new universe just yet but for what it’s worth, Boardwalk Times reported work is being done. Iger says they are creating “an entirely new entertainment universe.” The Disney-Epic Games universe will exist parallel with Fortnite but will have some crossover. Iger then listed what users can expect from the Disney-Epic Games universe.
Iger says you should think of Epic as a “gaming platform, streaming platform, creator platform, and also a social network all in one.” Now will Wall Street listen to that? Disney’s valuation should pop off!
A shareholder then asked how Disney has implemented AI and if there are plans for it in the Disney Parks. Iger started his answer by saying that Disney believes in the power, value, and importance of human creativity. Iger also says they appreciate the advancements in technology. Iger says AI may in fact be the most powerful technology that Disney has ever seen.
Iger says that AI is already enabling Disney to be more efficient and they are only just beginning to deploy it for those purposes. Iger says Disney is taking great care of three things when it comes to AI.
Another question that Iger faced was his toughest yet.
He was asked about Figment.
Also for what it was worth the shareholder specifically asked about Disney creating a Figment film. So Iger’s answer dodges the specific request.
“I think this is my 24th Shareholder call. My 18th as CEO, and I think the question about Figment has been asked about 15 times,” said Iger.
Iger joked that he calls him “good old Figment.” Iger says he knows he’s popular with shareholders and popular at EPCOT. Iger says he’s been asked about Figment so many times that he is going to task Disney’s creative teams to consider making some form of series or short-form videos of Figment. “Because obviously, he’s more popular than just a walk-around character in our parks and resorts,” said Iger as he was laughing. The funniest thing about this Figment question is that in 2022 before Iger returned to Disney it was reported that Walt Disney Studios was developing a Figment film with Seth Rogen producing. I’m a bit baffled about what exactly happened to that project. It feels like Iger would’ve had an easy answer if he had just acknowledged the film’s existence.
Iger was then asked another intriguing question about if Disney has any plans to do more standalone Disney Vacation Club resorts in different regions like Disney’s Aulani in Hawaii, Disney’s Hilton Head Resort, and Disney’s Vero Beach Resort.
Iger says Disney is not currently looking at more Aulani-like projects.
Pour one out for everyone who wants that Disney Vacation Club ski resort.
Overall, Disney’s Annual Shareholders Meeting this year didn’t have a ton of news. It was mostly reiterating Disney’s growth strategies and recent successes. It was also noticeably chill because there was no proxy fight. However, Coco 2 was a nice surprise and the continued appreciation of Disney Experiences and Walt Disney Imagineering is always welcomed. Not to mention the question portion was good, the Wall Street analysts should take note.
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Zach Perilstein is the Editor-in-Chief of the Boardwalk Times
