Iger Told to Sell Disney Park Assets Due to Major Stock Price Dips

in Disneyland Resort, Walt Disney World

Walt Disney Company CEO Bob Iger in front of Cinderella Castle

Credit: Inside the Magic

Walt Disney CEO Bob Iger was informed about different ways he could manage the falling stock price of the company.

Team Disney
Credit: The Walt Disney Company

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The Walt Disney Company has been falling short on Wall Street for the last several weeks, hitting a record-low price of $83. A lot of these financial issues can be attributed to the recent struggle Disney has faced over the last few months and years.

There’s no doubt that The Walt Disney Company has faced some of the biggest challenges and obstacles it’s ever faced in just the last five years or so. Of course, the COVID-19 pandemic was unprecedented, affecting the lives of every person on the planet. 2020 was a brutal year, not just for Disney but for everyone. However, the Disney parks and resorts, along with the entertainment division, changed a lot during this time, and unfortunately, a lot of passionate fans would say that Disney changed for the worse.

Bob Iger (left) and Bob Chapek (right) at 'Star Wars': Galaxy's Edge
Credit: Disney

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At the parks, portion sizes got smaller, prices got higher, and the overall level of quality that you used to find at Disney felt lacking. In 2022, Disneland and Walt Disney World introduced Disney Genie, a system that would fundamentally change the Disney park experience forever. A lot of these problems and price increases had to do with supply chain issues, but some of these issues have not been settled in the months and years since. A trip to the Walt Disney World Resort in Orlando, Florida, will cost the average family of four several thousand dollars, not including food, snacks, or any merchandise.

Couple the global economic troubles with a political battle between Disney and Florida Gov. Ron DeSantis, and you have created the perfect storm of controversy for a company like Disney. The leadership has changed significantly within The Walt Disney Company as well. In 2022, Disney fired CEO Bob Chapek after just a few short years, replacing him with Disney veteran Bob Iger.

Many financial analysts have chimed in as to what they predict will happen at The Walt Disney Company, with varying degrees of success. On CNBC’s “Squawk Box,” Rosenblatt Securities Senior Analyst Barton Crockett was asked what Disney should do to improve its stock price.

“In my mind, the right structure is a break up […] The right structure is a theme park-anchored equity; the TV networks moved off into a structure where, perhaps, private equity that traffics in challenged assets, cash flow-challenged assets at low multiples would be interested; and a content library that’s exceptionally valuable, and could be of great use to any number of tech platforms.”

DeSantis smiling near Cinderella castle
Credit: Inside The Magic

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The Co-anchor of “Squawk Box” Andrew Ross Sorkin, asked how it would be possible to make a Disney park without Mickey Mouse and other IPs, to which Crockett suggested, “I’m not saying that you lose Mickey in Disney [Parks] at all. I’m saying, and I think it’s really not complicated, to set up the licensing deals in perpetuity as part of a separation.”

As we said, The Walt Disney Company is currently entangled in a vicious legal and political battle against Gov. Ron DeSantis and the state of Florida. Disney sued Florida and Gov. DeSantis twice, with DeSantis’ team filing a countersue against The Walt Disney Company.

The Disneyland Paris Resort is facing several issues as well, with cast members going on strike earlier this summer and causing multiple operational issues for the parks. Disneyland Paris was forced to offer refunds to guests whose day was disturbed by these actions, which included blocking off the Sleeping Beauty Castle, closing down rides and attractions, and not having enough staff present to run the parks effectively. Universal is looking to dethrone Disney as the king of theme parks soon, with Epic Universe set to open in Orlando sometime in 2025.

This massive expansion will act as Universal Orlando’s third theme park and will host some truly incredible new rides and attractions themed to some of the most recognizable brands on earth. EPic Universe will feature another installment of Universal’s incredibly popular Wizarding World of Harry Potter as well as a new version of SUPER NINTENDO WORLD, which was already present at Universal Studios Japan and UNniversal Studios Hollywood.

What are your thoughts regarding The Walt Disney Company? Are you excited about the future of Universal Studios and Disney?

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