It’s “Time for Change” at Disney, and That Change Could Be HUGE

History says Bob Iger will FAIL, but others think Iger could make massive changes that’ll seriously improve the Walt Disney Company.

We’ve already shared how Iger has expressed that there’s “never been a better time to be a Disney fan,” analyzed what Bob Iger can do that Bob Chapek couldn’t, and taken a look at whether experts think Iger’s return is a “good thing.” But now we’ve got a look at just what some think Iger will do when it comes to major pieces of Disney’s current business.

According to The Hollywood Reporter, Wells Fargo analyst Steven Cahall has shared that it is their view that Iger has come back to make “big changes.” According to Cahall, spinning off ESPN and ABC is “the best path forward,” and a path they predict could happen in late 2023.

Cahall noted that it is “time for change” at Disney.

In terms of short-term goals, Cahall noted that he expects Iger will focus on content and cost rationalization. But, in the long-term, Cahall expects that Iger will look deeper at “portfolio reshaping.”

In Cahall,’s words, “Iger built Disney into what it is today: a franchise IP leader with global scale.” But with trends in linear media and sports “diverging from core IP, we think severing the company is increasingly logical.” He noted that investors might be “increasingly put off” by having to determine how fast linear networks are declining compared to direct-to-consumer profits.

Cahall noted that separating ESPN and ABC could “leave remaining Disney as an attractive pureplay IP company.”

Cahall’s suggestions/predictions? He thinks ESPN could go a la carte in streaming. Then Disney would have to work on “cost rationalization to ease the burden of losing ESPN/ABC’s earnings and cash.” And finally, Disney could consider a Hulu sale.

Cahall has determined that some of these spinoffs (particularly as related to ESPN would be a “reasonably probable event for late 2023.”

This is not the first time that an analyst has suggested that Disney spin off ESPN. As CNBC reports, activist investor Dan Loeb previously suggested that Disney spin off ESPN. He later changed his tune, indicating that he saw the virtue of keeping ESPN as a standalone business and another “vertical” for Disney to “reach a global audience and generate ad and subscriber revenues.”

We have a better understanding of @espn's potential as a standalone business and another vertical for $DIS to reach a global audience to generate ad and subscriber revenues. We look forward to seeing Mr. Pitaro execute on the growth contd. https://t.co/Gobvf8KS2w

— Daniel S. Loeb (@DanielSLoeb1) September 11, 2022

Will Cahall later change his analysis eventually? Only time will tell. We’ll continue to watch for updates on Iger and how his future decisions impact the Disney Company.

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