Summary:
- Disney's stock drops 3.9%, hitting almost nine-year low.
- Investors concerned about the effectiveness of Bob Iger's turnaround plan.
- Speculation rises about potential changes to Disney's core business.
- Iger hints at partnering for ESPN and focuses on film studios, theme parks, and streaming.
Disney isn't a fun ride for investors right now. Shares in the Mickey Mouse firm sank 3.9% on Thursday. That took them to their lowest in almost nine years. And futures markets suggest traders are betting the slump isn't done yet. Disney investors are scrutinising a turnaround plan laid out by boss Bob Iger. He's promised price hikes for its streaming services">streaming services as well as more ads and cost cutting.
In an earnings report earlier this month, Iger said the entertainment company faced a challenging environment. The stock has fallen more than 5% since. A big shake-up may also lie ahead. In a July interview, Iger said television, including its stations and cable channels, may not be core to Disney. Reuters sources say the comments sparked a frenzy of speculation among bankers and private equity players over a possible move. Iger later fuelled the conjecture when he said Disney might seek a partner for ESPN, its marquee sports brand. He said film studios, theme parks and streaming would be the core drivers for Disney over the coming years.