Walt Disney’s (DIS.N) load-bearing franchises are cracking. New superhero entry “The Marvels” fumbled its opening box-office weekend, pulling in a measly $47 million – the worst performance for a Marvel debut ever, according to Variety. Worse, boss Bob Iger’s other once-dependable hit-makers are sputtering. Disney’s Pixar studio delivered its own opening weekend dud with “Elemental.” The Star Wars universe’s latest TV expansion, “Ahsoka,” was panned. It makes Disney’s task of sustainably feeding the beast of money-burning streaming service Disney+ tougher.
Iger’s acquisitions of Marvel, Pixar and Star Wars’ Lucasfilm seemed a master stroke of M&A. But keeping the box office pipeline full and Disney+ stocked with subscriber-grabbing content requires a constant flow of new productions. Iger in November acknowledged that quantity can be the enemy of quality. When they hit the mark, though, new shows and movies prove crucial: Marvel spinoff “Loki” was the second-most-watched season finale on Disney+ this year. Iger is under pressure to refocus amid the return of activist Nelson Peltz. Yet he has been reticent to cut the cord on pieces of his empire, like dithering on a decision to sell its traditional TV channels. A slowdown at his most prized acquisitions raises the stakes on his next M&A decisions at a time of increased scrutiny. (By Jennifer Saba)
Follow @Breakingviews on X
Capital Calls – More concise insights on global finance:
Orsted’s ‘deputy heads must roll’ stance is risky read more
UK takeover net gets only slightly less bothersome read more
Sunak rolls the dice with Cameron resurrection read more
UniCredit’s Greek stake is less odd than it seems read more
SoftBank’s optimistic talk falls on deaf ears read more
