Twenty-First Century Fox, Inc. (FOXA)

Disney's 'biggest issue' is industry wide: Analyst

The Walt Disney Company (DIS) has emerged victorious in its proxy battle against activist investor Nelson Peltz. With the focus now shifting to Disney's plans moving forward, TD Cowen's Managing Director of TMT — Media & Entertainment Doug Creutz, joins the Morning Brief to discuss the expected fallout and what lies ahead for the entertainment giant. Creutz expresses no surprise at Disney's victory, stating that he would have been "shocked" if the results were any different. While acknowledging that Peltz "identified some things that Disney had mishandled in the past," Creutz does not believe the investor had any "interesting" plans for Disney's future. Looking ahead, Creutz hopes that Disney plans "to lead the charge" in re-bundling its direct-to-consumer services, calling it "the biggest issue the industry faces." He notes that leaving these channels separate has created additional costs for the business, but this approach could combat that issue. Creutz cites the Warner Bros. (WBD) and Fox (FOX, FOXA) joint ventures as good starting points, but adds that "it's a long way from getting back to a bundled product." Regarding succession plans at Disney, Creutz says "it's still not clear." With the company having long been considering potential replacements for current CEO Bob Iger, "there is a lot of pressure on the board" to figure it out before the 2026 deadline. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. Editor's note: This article was written by Angel Smith