Woke Disney Now a Mickey Mouse Operation
The famous house Mickey Mouse built, the Walt Disney Company, has gone stridently woke and is now mired in culture wars. Why? It’s CEO, Bob Iger, has put political ideology ahead of great storytelling.
Over the years Disney developed iconic characters such as Mickey Mouse, Snow White and the Seven Dwarfs, Cinderella and Donald Duck along with strong franchises in Star Wars and the Marvel cinematic universe. They knew how to create great stories that connected with people of all ages.
Disney expanded its empire to introduce the first theme park, selling apparel, toys and collectibles. It was a formidable brand.
Now, not so much, thanks to Iger.
Iger is the ultimate example of the liberal elite. He is always elegantly groomed, charming, bubbling with enthusiasm and in his large office has a private bathroom and vanity where he reputedly showers twice daily. According to those who know him, he lives for those two-a-day showers especially if he is heading to a premiere.
His Brentwood mansion is an hour’s drive from Los Angeles, where he is often spotted hanging out with celebrities, producers and agents. Reportedly, he is good friends with the Obamas.
For the longest time his ability to schmooze, wine, and dine the crème de la crème of the entertainment world paid off in gold. He convinced a reluctant Steve Jobs to sell Pixar, Ike Perlmutter to sell Marvel, and George Lucas to sell him Star Wars.The art of the deal was tailored and made for Iger, as he never paid an extravagant price for any hot property.
Moving up in the corporate world requires not only hard work but one must navigate cutthroat politics and still make smart decisions. Iger was possessed with the Midas touch, whose key strength was keeping his finger on the pulse of the entertainment world and when the time was right and a valuable asset became available he moved in like a lion on its prey.
His luck, however, began to run out after he purchased the film and TV assets of 21st Century Fox for $71 billion. The mouse was swallowing a big fox, saddling Disney with $45 billion in debt. Iger got into a bidding war with Comcast, as he feared the rise of Netflix and his emperor’s mindset decided he must have Fox.
Activist investor Nelson Peltz blames the Fox deal for giving Disney a “balance sheet from hell.”
Peltz said that the deal was “overzealous and made at the expense of profit.” Although revenues increased by $24 billion, operating margins were down 50% and Disney was forced to cut its dividend.
The real winner in the wrestling match between two titans was 91-year-old Robert Murdoch who sold his empire just when easy money ended and asset values peaked. Murdoch walked away with billions; giving his six children $2 billion each ensuring the family dynasty lives on.
After 15 years as CEO, Iger decided he was going to retire, or at least that’s what he said, and his hand-picked successor Bob Chapek would take over. Iger became Executive Chairman and held on to the heart and soul of Disney’s business, its creative portfolio. He refused to give up his office and private shower and Chapek agreed to a much smaller office on another floor.
Chapek made his mark in operations and his business style was low-key and used traditional business management concepts such as being accountable, responsible, consulted and informed to make decisions. He wanted to restructure the company and tried to impose accountability on a big organization with a burgeoning leftist culture.
After Florida Gov. Ron DeSantis introduced the Parental Rights In Education Act that became known as the ‘Don’t Say Gay Bill,’ legislation that prohibits schools from teaching sexual orientation or gender identity to children, Iger Tweeted his view: “If passed, this bill will put vulnerable, young LGBTQ people in jeopardy.”
Chapek preferred to keep Disney out of politics and wrote in a memo: “Corporate statements do very little to change outcomes or minds. Instead, they are often weaponized by one side or the other to further divide. Simply put they can be counterproductive and undermine more effective ways to achieve change.”
The backlash was immediate as hundreds of Disney employees protested and Iger began to have second thoughts about his protégé’s ability to run Disney.
Chapek’s coup de grace occurred after he decided to release the movie Strange World which featured an openly gay character. He was warned not to, as it was too polarizing and not up to Disney standards. Disney studio executives and Chapek feared there would be a sexual minority rebellion and released the movie, which was a giant flop, losing close to $200 million.
Soon after, Iger swooped in, leaving behind the comfort of his yacht where he spent his days making investments and writing a second book.
Chapek was fired and Iger took over. In reality, Iger never left Disney and was a dark shadow following his successor around. Chapek confided to a friend his tenure at Disney was “about three years of hell,” and constantly feared that Iger wanted his job back.
There is nothing wrong with casting diversity in a film but Disney’s woke culture has made it clear they are pushing a political agenda.
The Wall Street Journal wrote in an editorial: “Disney has abandoned its priorities of making family-friendly entertainment to curry favour with the cultural left.”
The WSJ went on to point out that “progressive pieties have been elevated over originality and tradition, which may be alienating its customer base.”
According to the Journal, the remake of the 1937 classic Snow White and the Seven Dwarfs saw a Latina actress cast as Snow White and the dwarves as magical creatures of various races, heights and genders to avoid reinforcing stereotypes.
Disney places disclaimers on its streaming animated movies, Dumbo, Peter Pan and Jungle Book warning viewers these films include negative depictions and mistreatment of people or cultures that were “wrong then and are wrong now.”
Disney has been accused of “anti-White propaganda” after a clip from the show, The Proud Family, has characters delivering messages about slavery and reparations.
However, its woke-ism is not translating into profits.
During the third quarter, they posted a net loss of $460 million, compared to a profit of $1.4 billion the year before. It continues to lose subscribers; its streaming services are losing millions and competing against 25 other streaming services. Their last eight movies have lost $900 million at the box office. The first half of 2022 saw the company’s performance at the bottom of the Dow Jones.
Iger has created a kingdom that only he knows how to run.
The company is big and bulky; productions cost too much, linear TV is in decline and ESPN continues to suffer from cord-cutting. Change is desperately needed but Iger has rebuffed activist investor Nelson Peltz from joining the board and has extended his contract until 2026.
Disney’s glory days are stuck in the past and may remain there unless ‘emperor’ Bob gives up control and an outsider is hired as CEO to restructure the company and its board, get rid of its woke virus, and get back to creating magical stories.