It’s Time to Break Up Disney
I am willing to bet a few of the more realistic institutional investors are chewing that one over in the backs of their minds.
And if they aren’t, then I guarantee Parks and Experiences executives in Orlando are quietly bringing the idea up over Dole Whips when the mega-moneymen visit Tomorrowland.
Something that is not generally known to the public is that the great Red/Blue divide has very much divided the Walt Disney Company. Disney Burbank intensely loathes Disney Orlando and Orlando likes Burbank even less.
When executives at Burbank go out to eat, they discuss Rachel Madow’s show.
When the bosses at WDW get together for after-work drinks they talk about what Tucker had to say last night.
Just to be clear Disney World detests the entertainment wing at this point. WDW viewed the Disney Studios as a drain on Parks and Experience’s resources, it is Disney World that generates billions, reliably generates billions annually. And it has been years since Disney Studios made a profit. Even when Marvel was making bank, Lucasfilm was offsetting that with massive opportunity cost losses. Given the money that had to sunk into Star Wars, Lucasfilm needed to gross $16 billion before it could truly be said to be making a profit.
And all of that was before Burbank became an erupting volcano of public relations disasters.
There was a time, and it wasn’t that long ago, that Disney could realistically claim that it was the most beloved company in America. And thanks to California Disney that is gone forever. There is no way to get that emotional attachment back when it has been subjected to betrayal.
Burbank openly sneers at Disney World’s guests as a bunch of fat rednecks. An attitude that absolutely infuriates the Cast Members at the parks.
A certain degree of competition between divisions of a large company can be a good thing. It helps keep things trim and puts a damper on the more pointless speculative projects. However, the relationship between Disney’s entertainment division and Parks and Experiences has become toxically dysfunctional. They have now reached the point where they are actively sabotaging each other.
I had thought that it was Chapek or one of his people that had leaked the Reimagine Tomorrow clips. I was wrong. The Wokeites had Chapek completely cowed. When you see Chapek’s hostage video, he was reverting to type. “That was the face of a frightened accountant.”
He didn’t leak those videos. Someone from Orlando did.
While the studio side is disgusted by Orlando, they do enjoy ruling the parks. And while they would never admit it, they find the idea of life without Parks and Experiences terrifying.
This toxic relationship should have been addressed years ago before it reached the point that it became irreversible. However, Bob Iger only seemed interested in turning Disney into a platform that would support his presidential ambitions.
Even if the relationship could be repaired at this point (extremely doubtful), Bob Chapek, is simply and undoubtedly, the wrong man for that job. Neither side has any use for him and after this year I doubt if the institutional investors do either. The earnings call next week will be bloody.
Back in the 1980s, the Walt Disney Company breathed a collective sigh of relief when it fought off a corporate raid that would have broken up the company. Today, I think it may be the best thing for Disney.
Okay, I’m done here.
