At Allen & Co.'s annual conference in Sun Valley, Idaho, on Thursday, Bob Iger - the CEO of Disney - met with CNBC's David Faber. Earlier this week, Disney declared that Iger's contract had been prolonged by two years, and would now run until 2026. After coming back to lead Disney late last year, Iger has been required to preside over thousands of layoffs and billions of dollars in cuts to personal expenses and content.
Bob Iger, the Disney CEO who recently had his contract extended through 2026, opened the door to potentially selling the company's linear TV assets on Thursday, as the media industry transitions to streaming and digital offerings. After returning to Disney's helm, Iger realized the business was facing a lot of challenges, some of which were self-inflicted, and is looking to assess the traditional TV business. He expressed that these networks may not be core to Disney, while ESPN may be an exception. Iger had previously predicted a pessimistic future for traditional TV, and commented on Thursday that reality has surpassed expectations.
Moreover, Iger had announced a major restructuring when he returned, resulting in thousands of layoffs and billions of dollars in cost reductions to ward off a potential proxy fight with investor Nelson Peltz. He also reorganized the company into three segments: Disney Entertainment, an ESPN division, and a Parks, Experiences and Products unit. Lastly, Disney revealed plans to add Hulu content to Disney+ and potentially buy the entire platform from its current 66% ownership stake. Iger expressed his belief that having Hulu is beneficial to the streaming business and that the combined offering would be available by the end of this year regardless of negotiation results. Disney will be reporting its fiscal third-quarter earnings on Aug. 9.
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