Iger Talks Selling ABC, Legal Battle with Florida, and More

Disney CEO Bob Iger had a lot to say about recent Disney news at the New York Times Dealbook Conference. He discussed rumors that the company was selling ABC, pulling ads amid X controversy, and when he plans to step down as CEO…for good.

Selling ABC

Disney reportedly considered getting out of the traditional television business. According to several national media outlets, the company quietly held talks with Nexstar Media and several other companies in regards to selling ABC and its affiliates. You can read our original story HERE.

The possible agreement would give them a boost of capital, which will at least temporarily add cash to spend somewhere else. It also removes the stress of operating traditional television and streaming. Back in September, Disney released the following statement:

“While we are open to considering a variety of strategic options for our linear businesses, at this time The Walt Disney Company has made no decision with respect to the divestiture of ABC or any other property and any report to that effect is unfounded.”

And, at the New York Times Dealbook Conference, Iger reiterated that they have made no decision to sell ABC. In fact, he says the media overblew his original comments this past summer. Instead, the company looks to constantly evaluate the success of Disney’s linear channels.

Like all of our assets, we are constantly evaluating, ‘What is their value to the company today? What could their value be tomorrow? Is it a growth business?

Bob Iger

Leaving the Company

When Iger was called back as CEO in November 2022, his original contract was only two years. In those two years, he hoped to find and train a successor.

Then, his contract was extended until 2026. Here is Disney’s statement from July 2023:

“The Walt Disney Company Board of Directors announced today that Robert A. Iger has agreed to continue to serve as Chief Executive Officer through December 31, 2026. In voting unanimously to extend Iger’s contract by two years, the independent members of the Board of Directors noted that Iger’s extension provides continuity of leadership during the company’s ongoing transformation, and allows more time to execute a transition plan for CEO succession, which remains a priority for the Board.”

Speaking about his time as CEO and plans for departure, he says he is definitely leaving in December 2026. He speaks about the call he got from the Disney board back in November 2022 and how he felt obligated to help them out when they felt they had no other alternative.

Pulling Ads From X

The Walt Disney Company, along with several other companies, paused ad spending on X earlier this month.

The decision to cancel ad spending all stems from Musk’s agreement with a post about Jewish people who are facing antisemitism amid the Israel-Hamas war. The theory refers to the idea that they Jewish people are pushing the “exact kind of dialectical hatred against whites that they claim to want people to stop using against them” and supporting the immigration of “hordes of minorities.”

“You have said the actual truth.” Musk replied. The conspiracy theory claims that nonwhite immigrants (like Jews) want to replace the white race.

While Iger said he greatly respected Elon Musk, the company just felt that the association with that position and Elon Musk and X was not necessarily a positive one. So, they decided to pull advertising.

The company not only paused all ads but general postings on X from November 17 to November 27. On November 28, they began posting again.

Florida Lawsuit

On the ongoing legal issues with the state of Florida, Iger said, “the company, while I was gone, decided to take a position against the Don’t Say Gay bill that was moving through the Florida Legislature. I won’t comment about what I would have done or not done, but the company took that position against it.

The governor got very, very angry at the company when it took that position and decided to punish the company by basically stripping its rights to a special district around Disney World that had been in place for decades. The question wasn’t even about the [bill, later law]. It was about does a company have a right to free speech. And if it exercises its right to free speech, it should not face retribution.”

He said he has offered to talk to Ron DeSantis, but the governor did not take him up on that offer.

And More

When asked about enthusiasm for expanding in China, Iger said he was not optimistic. He said, “I think it’s pretty obvious that issues between our countries tensions have had an impact on business, not just Disney’s but on other companies as well.”

He also briefly discussed activist investor Nelson Peltz, who is seeking board seats at the company. Nelson Peltz’s Train Fund Management has reportedly increased its stake in Disney to nearly 30 million shares.

Train is one of Disney’s largest investors. In fact, Train’s stake is worth an estimated $2.5 billion. However, Peltz did not support Iger’s return to the company.

“The board has an obligation to listen to investors. I am certain that the board will hear them out as to what their plans are,” Iger said of Peltz, adding that he told the board that “we have to obviously contend with them in some form, but don’t force me to take my eye off the ball [in managing the company].”

We’d love to hear your thoughts on any and all of Iger’s comments today! Share them with us in the comments below.