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Culture War Roundup for the week of September 4, 2023

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Inside Disney and internal corporate boardroom drama. Iger appointed Chapek as his successor but ended up decided coming back. It touches on the fight with Desantis, the prior generation deciding not to retire, internal power struggles, managing a business where no one has the skillset for all of the businesses (creative, running parks, international, finance, sports, launching a streaming business). About a 15-20 min. Iger seems more interested in the Desantis fight than Chapek who just wanted to play nice.

https://www.cnbc.com/amp/2023/09/06/disney-succession-mess-iger-chapek.html

Disney's 2023 releases have been duds

https://www.forbes.com/sites/carolinereid/2023/08/04/the-four-flops-of-2023-that-cost-disney-1-billion/?sh=4e9e00b13bed

Losses on some, profits on others. I don't see how a $100 million loss on a movie can cause a decline of market value in the tens of billion. mediocre movies cannot explain why the stock has fallen so much. Disney has always produced a lot of mediocre but expensive movies throughout its recent history [1], yet the stock has done so well , until 2022. The value is in the IP and other services, not so much box office. A movie that loses money at box office will still generate $ decades down the line through IP.

[1] https://screenrant.com/disney-biggest-box-office-bombs-disasters/#a-wrinkle-in-time-2018

Outside of some weird cases like airlines, the value of a stock is a function of expected future earnings. Shareholders may have been convinced in the past that there was potential in owning DIS. They are no longer so confident.

Disney may always have had duds, it's the cost of doing business in that industry. But I believe what the market has realized is that they have lost the ability to make the popular entertainment that makes the duds worth it. It's not a stroke of bad luck, it's skills shortage.

Marvel is winding down massively, Star Wars has been blown up for nothing, Pixar is way past it's prime, the parks aren't making much money and the political spats have tarnished the image of family friendliness that has always been a core part of Disney's strategy.

They bought so much they own all of classic pop culture and yet I'm left asking: who is going to care about Disney IP in ten years? Versus, say, Nintendo.

Wait, how do airline stocks work?