The Walt Disney Co. offered up a sanguine presentation to shareholders at its annual meeting Thursday ... but Chief Executive and Chairman Robert Iger ... was forced to confront pointed questions from investors about the health of Disney's key television business, ESPN in particular.
The nation's most prominent sports network remains a cash cow for the Burbank entertainment giant but lost an unspecified number of subscribers in the most recent quarter that ended Jan. 2. ...
“There's this perception of ESPN dragging us down,” one shareholder said as part of comments directed at Iger. “How do we change the market's view of the company?”
Iger forcefully defended the sports network's business, saying that “ESPN is a healthy business and a large business … and a growth business.”
Disney shares climbed 2% to close at $98.82 on Thursday. The stock has fallen 6% this year. ...
For years and years, ever since Michael Eisner bought it, ESPN has been a major driver of profits for the Mouse. This or that motion picture might tank, merchandise sales could hit a soft patch or the DVD market shrink to a fraction of its former self, and ESPN could chug steadily on, generating profits.
But technology marches on and (apparently) that time is ending. So Disney will have to find a way to jack up admissions to the amusement parks again.
Oh, wait ...
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