The CEO of Disney, Bob Iger, has faced numerous challenges since returning to his position nearly a year ago. Despite this, his former head of streaming, Kevin Mayer, believes he is well-equipped to handle them.
Speaking at the Yahoo Finance Invest conference, Mayer, who now leads the Blackstone-backed entertainment startup Candle Media, emphasized Iger’s capabilities to manage Disney’s current situation.
Disney’s stock is at multiyear lows, activist investor Nelson Peltz is seeking multiple board seats, and the company’s parks and linear TV division are experiencing declines. However, Mayer praised Iger’s strategic capabilities and multitalented nature, suggesting that he is prepared to address these challenges effectively.
As a strategic advisor to Iger, Mayer noted that his former boss would prioritize the well-being of Disney’s shareholders and make decisions that benefit the company in the long term.
Despite Disney’s stock dipping 3% this year, Mayer expressed optimism about the company’s potential to address uncertainties surrounding its streaming, television, and other entertainment assets. He believes that Disney’s strategic vision, combined with future endeavors like gaming and the recent acquisition of Comcast’s stake in Hulu, will drive an improved stock performance.
Moreover, regarding the decision to raise streaming prices and Disney’s commitment to addressing challenges in its linear TV business, Mayer reiterated his confidence in the company’s bright future.
In line with the company’s strategies, Iger hinted that Disney might consider selling its traditional TV assets this summer. While analysts have questioned potential buyers for such assets, Mayer highlighted the profit margins of linear networks and the promising future of digital media players.
He also discussed the potential for big media companies to consolidate and mentioned that even his own startup, Candle Media, could be subject to acquisition or a public offering in the future.
Who would buy a linear TV business?
Mayer raised questions about the profitability of streaming companies compared to linear networks and suggested that a potential buyer for a traditional TV business may emerge from the digital media landscape.
See the latest coverage from Yahoo Finance’s Invest event:
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on Twitter @allie_canal, LinkedIn, and email her at [email protected].
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
