DIS Shareholders and Stock Info ONLY

Thought Zaslav knew how to deal with WS better than that.

Greenfield from LightShed, who always comments on DIS too, had some interesting things to say - That Max is a flawed strategy and they should drop it and become an arms dealer. I think that makes a lot of sense in WBD's case, maybe you keep HBO as a high end streamer (a la Apple) and rent out everything else.
https://finance.yahoo.com/video/warner-bros-discoverys-max-flawed-150620860.html

I think this also helps point to the fact that we are going to end up with the Big 3 streamers - Disney, Amazon, Netflix - and that is all. You'll have some niche and high end ones like HBO and Apple but I think all the rest either merge with a big 3 or go the arms dealer route. And it's funny, isn't it, that in the olden broadcast days, the Big 3 networks and a few local channels were all that could be supported by the viewing public and soon we will be back to where we started but with a slightly different (and of course more costly) delivery method (and a lot more viewing choices within those 3). As I said in a recent post, history repeats or at the very least rhymes.
We won't be back to where we started, except that what we see will be advertiser supported. That's where the money's at, and always has been. But the viewing choices will continue to expand for the foreseeable future. As more copyright's expire, there will be a multitude of small streamers that can make a bit of money off old programs. The Andy Griffith Show still commands a daily audience.
 
I think this also helps point to the fact that we are going to end up with the Big 3 streamers - Disney, Amazon, Netflix - and that is all. You'll have some niche and high end ones like HBO and Apple but I think all the rest either merge with a big 3 or go the arms dealer route. And it's funny, isn't it, that in the olden broadcast days, the Big 3 networks and a few local channels were all that could be supported by the viewing public and soon we will be back to where we started but with a slightly different (and of course more costly) delivery method (and a lot more viewing choices within those 3). As I said in a recent post, history repeats or at the very least rhymes.
Maybe Max should merge with Netflix.
 
https://www.msn.com/en-us/news/world/can-warner-bros-uncancel-jk-rowling/ar-BB1iNy6j

Can Warner Bros. Uncancel J.K. Rowling?
The studio’s new boss, David Zaslav, sees his mission as salvaging a rocky relationship with the creator of Harry Potter

by Erich Schwartzel

Updated Feb. 24, 2024 - 12:12 am EST

To Warner Bros., the Hollywood studio that brought Harry Potter to life in blockbuster movies and theme-park attractions around the world, J.K. Rowling may just as well have been wearing an invisibility cloak.

It was early 2022, and the Harry Potter author had avoided executives for more than two years. She’d recently skipped a reunion special that streamed on the company’s Max service, a notable absence amid the now-grown stars of the films. When she soon after attended the premiere of an installment in the spinoff “Fantastic Beasts” series, she didn’t pose for photos with the cast.

The stars who had embodied her iconic characters wanted little to do with her. Critics and former fans had spent the past two years castigating the author for public comments on gender and sex that they saw as attacks on transgender rights. When Warner didn’t rush to her defense, she felt betrayed by a company that had collected billions of dollars from her creation.

Then, like a letter arriving via owl post, word came that David Zaslav, the new chief executive of the studio’s parent company, Warner Bros. Discovery, wanted to try to repair the damage. Zaslav had started his new job when an associate told him to get on a plane to the U.K. if he wanted a chance at winning over the writer who controlled his company’s most valuable property.

Sitting across the table from one another at a London supper club soon after, Rowling and Zaslav spent four hours discussing their childhoods, their families, how they weathered Covid-19. Zaslav wanted to breathe new life into the Harry Potter franchise, seeing a new TV show as a potential tentpole in his streaming strategy. But he needed to use a light touch—this was about salvaging a relationship so complicated and emotional that many have described it not as a business partnership, but as a marriage.

“What was it like taking over this company?” Rowling asked him, according to a person familiar with the exchange. “What is your ambition?”

“A big part of it is you,” Zaslav replied.

Keeper of the keys

Over much of the past 25 years, J.K. Rowling held remarkable sway over the executive suite at Warner, which bought the rights to her fantasy series when she was an unknown writer. As Harry Potter’s popularity grew, Rowling’s power soared. Over time she exerted de facto control over the critical Warner asset, vetoing ideas, limiting its storytelling scope and issuing verdicts at biannual gatherings that Rowling referred to as “Ministry of Magic” meetings.

Executives flew across the Atlantic to charm her, or patch things up after a screaming match. For much of her partnership with Warner Bros., Rowling has largely kept her distance from the studio team, heightening an aura of impenetrability and suspicion. The few people who interact with her flex that closeness by calling her “Jo.”

The arrangement was tested time and again, but the results were undeniable, as Warner churned out one hit Potter movie after another for a decade, ending with 2011’s “Harry Potter and the Deathly Hallows: Part 2.” More recently, a growing number of theme parks and other in-person attractions and a hit videogame have expanded the franchise’s presence around the world.

Now, Zaslav wants to write a new chapter in the once-in-a-generation franchise, in the hopes of sparking a magical turnaround in his company’s fortunes. Since taking over as CEO in April 2022, following the merger of WarnerMedia and Discovery, Zaslav has struggled to convince Wall Street that he can win in the cutthroat streaming business, where subscriber growth is anemic and profitability inconsistent. Warner shares are down nearly 65% since the merger. That includes a significant drop Friday, after the company reported lower revenue, a $400 million loss and fewer streaming subscribers in the U.S. and Canada.

Zaslav came to Hollywood presenting himself as a talent-friendly studio mogul. But he quickly made enemies. A cost-cutting campaign purged several TV series from the company’s streaming service and shelved movies like “Batgirl” and a new Looney Tunes feature before they had even aired. Partying with fellow millionaires at the Cannes Film Festival last May while picketing TV writers struck for better pay in Los Angeles didn’t help his case.

He can’t afford to alienate Rowling too. She is the last member of what was known internally at one time as Warner’s “A+ talent” crew, a group that included only two other members: Clint Eastwood and Steven Spielberg.

But now, Eastwood is 93 years old. Spielberg made his last two movies at other studios. Rowling appears to be the last one left.

This article is based on interviews with people familiar with Rowling’s relationship with Warner, including current and former employees of the entertainment giant and associates of the author.

A representative for Rowling said the author declined to comment. Her primary business partner, Neil Blair, said: “We pride ourselves on delivering best-in-class work for fans of the Harry Potter franchise globally. We hope under the new leadership at Warner Bros. Discovery that this will continue together, with the same care and excellence which the franchise has been synonymous with for over twenty-five years.”

The boy who lived

Warner Bros. was early to the Harry Potter phenomenon. The studio secured the rights to adapt the series after an eagle-eyed producer, David Heyman, read the unpublished manuscript of Rowling’s debut novel, released in the U.K. as “Harry Potter and the Philosopher’s Stone.” Heyman took the idea to Warner Bros in early 1997.

Rowling wasn’t paid an impressive amount for the deal, whose terms gave the studio vast creative control over the property, reflecting her status as an unproven literary talent.

As millions soon came to learn, “Harry Potter and the Philosopher’s Stone” had been written by a single mom not far from welfare, stealing time to write while her baby slept by her side at Nicolsons, an Edinburgh cafe whose workers didn’t mind if she stretched a single cup of coffee for two hours.

By the time the third book, “Harry Potter and the Prisoner of Azkaban,” was released in 1999, Pottermania was in full swing. The novels were bestsellers that inspired children’s names, tattoos and release parties flooded with young readers dressed in capes and glasses—fake scars scrawled on their foreheads. She not only got kids to read, she got them to line up for hours outside of bookstores for a chance to do so. The closest comparison many could find was Beatlemania.

That year, Rowling sat for an interview that would prove an early indication of the protectiveness with which she would guard her creation. It was with Lesley Stahl of “60 Minutes,” who explained how Rowling was turning down dozens of offers to license her characters to companies, from margarine producers to Boeing.

Toward the end of the interview, Stahl outlined a future where Harry Potter is in theaters, on TV and on toy shelves.

“I don’t know about the television series…,” Rowling said, shifting in her seat and growing uncomfortable. Action figures? She couldn’t hide her disgust at the thought.

“I’m a mother. I hate action figures,” she said, covering her mouth as though shocked at what’s coming out of it. “If the action figures are horrible, just tell the kids that I said, ‘Don’t buy them.’ ”

Then she added two words that would echo throughout studio halls in Los Angeles for years to come: “Sorry, Warners.”

Fantastic films and where to find them

Over the next decade, Warner adapted Rowling’s Harry Potter books into eight movies. Seven of them are among the studio’s 25 highest-grossing films of all time. All told, the series collected nearly $8 billion at the global box office before ending in 2011.

But when Kevin Tsujihara took over as head of the Warner studio in 2013, he saw a franchise collecting dust, and had a challenge: What came next? Rowling had distanced herself from the studio, and Tsujihara flew to Scotland, where she lives, to reset the relationship.

Out of that rapprochement came an agreement to produce a new film series titled “Fantastic Beasts and Where to Find Them,” based on a spinoff book that takes place in the same wizarding world that Harry Potter lives in. Rowling, who had not adapted the Harry Potter books for the screen, wanted to write the Fantastic Beasts screenplays herself.

Tsujihara accelerated efforts to build a franchise team crossing film, consumer products, live attractions and other divisions, with one leader based in Los Angeles and another, per Rowling’s request, based in London.

A new enthusiasm infused the effort. Executives studied longstanding franchises to understand how a brand could become an “always-on” property.

George Lucas had allowed writers to expand the Star Wars universe with novels and TV series years after he’d finished directing the films. Jurassic Park and Batman have been revisited by different writers and directors time and again.

Harry Potter, by contrast, had a creator who didn’t want to lose any control.

No detail was too small. At one point, Rowling wrote executives to ask about the chocolate used to make “chocolate frogs”—a sweet featured in the books—that fans can buy at the parks. Why, she asked, was it not sourced fair-trade?

The incremental requests added up to significant contractual changes, turning a once-lopsided deal into one that granted her more rights and revenue as her stature grew. The new perks range from a bigger cut of merchandise sales to an understanding her team has influence over who on the Warner Bros. side manages the franchise.

Supporters say Rowling’s restraint has served her creation well. Harry Potter over the years avoided the franchise fatigue that would befall marquee Hollywood properties like Marvel and Star Wars, which lost some fans amid a glut of film and TV programming.

As Warner worked on Harry Potter’s next phase, executives had to rely on Blair, Rowling’s business partner, as the key liaison. A lawyer who had once worked for Warner, Blair had helped write her original contract. After that deal was signed, she hired him to run her business out of the U.K. He updated her on the studio’s ideas and pitches about once a month, visiting her home in Scotland, but Warner executives often felt left in the dark about what details he presented to her.

Most direct facetime with Rowling came at more infrequent Ministry of Magic meetings, held in London and New York. Warner employees would spend weeks preparing.

Inside the meetings, Rowling was often approachable and focused—one attendee noted that she never looked at her phone. But when things grew heated, over a contractual point or storytelling disagreement, the mood could get combustible. Screaming matches. Threats of boycotts. Tears.

Rowling often attached her personal history to the business at hand. At times she referred to her past as an abused woman, saying a group of men telling her what to do reminded her of her previous marriage, during which she has said her husband, Jorge Arantes, barred her from having her own house key and searched her handbag when she returned from trips out. (Arantes couldn’t be reached. In a 2020 interview with the British tabloid the Sun, he denied any “sustained abuse” in the relationship but admitted to slapping Rowling on the night she left him.)

At other times she invoked her time as a single mother, saying the characters under debate were like her children.

Warner executives, certainly sympathetic to her history, didn’t know quite how to respond, and treated her as a de facto decider of matters large and small—even if, contractually, they didn’t have to.

They feared she would speak out if she disapproved of any Harry Potter item, discouraging millions of loyal fans from supporting it.

Around the studio, the refrain went: “We don’t want her to ‘60 Minutes’ us again.”

Dueling views

The studio’s belief that Rowling should be the primary ambassador for the Harry Potter brand lasted for the first 21 years of the Warner Bros. relationship. Then, in 2019, Rowling found herself at odds with Warner Bros. employees and even some fans over comments she’d posted to Twitter concerning gender and sex.

Rowling had started by posting support of a London woman who had lost her job over what she called “gender critical” statements that included the belief that it is impossible to change one’s sex.

In Rowling’s view, the woman was simply standing up for the notion that “sex is real.” Six months later, Rowling mocked a newspaper headline for using the phrase, “people who menstruate.” She posted on Twitter: “I’m sure there used to be a word for these people. Someone help me out. Wumben? Wimpund? Woomud?”

Rowling, who had long publicly supported progressive candidates and repeatedly lampooned Donald Trump, became a world-famous enemy of some trans-rights advocates. Rowling responded to critics regularly, including in an extensive essay detailing the personal history that brought her to her stance.

“I refuse to bow down to a movement that I believe is doing demonstrable harm in seeking to erode ‘woman’ as a political and biological class,” she wrote. “I stand alongside the brave women and men, gay, straight and trans, who’re standing up for freedom of speech and thought, and for the rights and safety of some of the most vulnerable in our society.”

Rowling said she believed a vast majority of trans people did not pose any threat but that “any man who believes or feels he’s a woman” should not be permitted automatic access to bathrooms or shelters reserved for women.

Transgender advocates called her comments a “mountain of lies.” Fan sites dedicated to Harry Potter pledged to stop mentioning the woman who’d created the world they loved. Death threats against Rowling mounted.

Each time a new Rowling tweet about trans issues appeared, the Potter managers at Warner Bros. tried to work through their disappointment. Some agreed with her, others didn’t, but Rowling’s remarks threatened to drag an unimpeachable brand into a political maelstrom.

Executives began surveying the global fan base to anticipate how the author’s views might dent sales. The answer: not much. For the most part, Rowling’s statements had affected some peoples’ opinion of her, for good or ill, without having a material impact on the Harry Potter brand or business.

A smattering of Harry Potter fans claimed they would stop buying new books or products that put more money in Rowling’s pocket. But many responded like Aidan Stanley, a 26-year-old from Arizona first introduced to Harry Potter at age 4. He’s read the original seven books three times and plans a movie marathon each Christmas with his wife. Last year he played the latest Harry Potter videogame.

But Rowling? “She’s kind of whatever,” he said, speaking last month at the Wizarding World theme park in Southern California, clad in a Gryffindor robe and carrying his own wand. “I could not care less” about her comments, he said.

“I grew up with it, so I’m never going to be torn away from it.”

The Battle of Hogwarts

In June 2020, as the controversy reached a high pitch, Warner issued a statement: “We recognize our responsibility to foster empathy and advocate understanding of all communities and all people, particularly those we work with.”

Rowling wanted a stronger showing of support. Studio leaders felt they could not offer one without angering employees or other creative partners, such as the Wachowski sisters, trans women behind Warner’s Matrix series.

The core trio of actors in the Harry Potter films spoke out against her. Daniel Radcliffe, who’d portrayed the title character from ages 12 to 21, issued a statement soon after Rowling’s 2020 comments, saying: “Transgender women are women. Any statement to the contrary erases the identity and dignity of transgender people.”

An awkward family reunion neared. Warner’s streaming service, then called HBO Max, planned to stream a Harry Potter cast reunion in January 2022, gathering Radcliffe and other former students at the fictional Hogwarts School where the Potter series takes place.

Executives at Warner wondered how to involve Rowling. Some cast members didn’t want to see her, making one-on-one conversations between Rowling and an actor too risky to put on camera. Maybe she could narrate the special? Or appear by herself?

The problem was solved for them when word came that Rowling wanted no involvement at all in the reunion. The team behind the special was relieved.

The Chamber of Secrets

While Rowling’s relations with the Harry Potter actors frayed, Warner executives continued to pursue what had become a yearslong quest: getting a Harry Potter TV show made.

Franchise executives tried to get creative, at one point pitching her team on a stop-motion animation version of Harry Potter.

Warner executives watched in frustration as competing streaming services took off, and established franchises such as Star Wars and DC Comics became treasure maps full of potential shows.

Around three years ago, before Zaslav took over, the studio approached TV writers and asked them to brainstorm ideas in the Harry Potter universe. A prequel about the generation of wizards that included Harry’s parents was one idea. A look at a different school for young wizards was another.

The ideas weren’t presented to Rowling. Warner executives knew she had the right to kill the projects should she choose to do so.

That veto power stemmed from Rowling’s request in the early 2000s to grant her authority over “non-author written sequels,” legalese for the kind of prequels and spinoffs that the studio wanted to explore with writers other than Rowling.

The issue eventually landed on the desk of Warner’s top executives. The verdict: Rowling could have the rights for her lifetime. But that too was eventually amended at the request of Rowling’s team, so that the rights will be controlled by a literary trust when she dies, giving a representative of the author veto power in perpetuity.

Reparo

When Zaslav was named CEO of Warner Bros. Discovery in 2022, he gathered his deputies and through “sheer force of will” mandated a renewed effort among his lieutenants to get Harry Potter onto TV, recalled Casey Bloys, chairman and CEO of the company’s HBO and Max content divisions.

“Not, ‘What would you do if…’ ” Bloys said. “But, ‘We’re going to make this happen.’ ”

Warner’s HBO has a rich heritage of producing hits dating back decades, from “The Sopranos” and “Sex and the City” to “Game of Thrones” and “Succession.” Zaslav’s task: building Max into a brand of its own by bringing a new wave of must-see shows to the streaming service, while holding down costs and delivering the profits investors crave.

A Potter series would be costly, but could prove a major subscriber draw. Zaslav soon concluded, however, that the only Potter show Warner could legally pursue without Rowling’s permission was one that stuck to the stories of the original seven books, since those were firmly in the studio’s control and not the kind of prequel or spinoff she’d clawed back the rights to years earlier.

When Zaslav met with Rowling following her months of anger toward Warner Bros., he knew he was on strong footing to create a TV remake of the books, but he still wanted her on board.

“It’s just not a great creative move to have the architect unhappy,” said Bloys.

Months of talks followed as Zaslav spoke to Rowling directly. The studio pitched Rowling on the big-budget treatment that TV can afford now, in a market where per-episode costs routinely exceed $20 million. There was also the chance, through a show likely to premiere more than 20 years after the first movie, to use the series to hook younger audiences on the wizarding world.

The new series will bring to the screen subplots and tertiary characters who didn’t make the cut in the eight movies. A single season may cost up to $250 million, a reflection of the kind of cinematic, high-budget production now expected by fans in TV’s prestige era.

“Max’s commitment to preserving the integrity of my books is important to me,” said Rowling in a statement when the show was announced last April.

Max executives are meeting with writers now to hear how they would approach the TV series, Bloys said, with a small group pitching Rowling on the concepts.

When the show was announced, Rowling responded on X to disaffected fans who said they’d boycott the series because of her involvement.

“Activists in my mentions are trying to organise yet another boycott of my work,” she wrote. “As forewarned is forearmed, I’ve taken the precaution of laying in a large stock of champagne.”

Mischief managed

Zaslav has a series in development that he says will debut in 2026—and that means he has gotten a Harry Potter TV project closer to the finish line than any of his predecessors did in years of trying. Behind the thawing relations, executives say, is a shift in the studio’s approach—one that seeks to avoid alienating the Rowling camp without automatically ceding power to it either.

Billions of dollars in investment are now coming to fruition, after years of negotiation to get the author on board.

Potter theme parks and live attractions have hit nearly every country where research has revealed a high concentration of fans. A new offering just went up in Cologne, Germany, and Abu Dhabi is on the docket. Potter attractions in the U.S.—built at Universal-owned properties as part of a deal with that company—have boosted attendance at theme parks in Orlando, Fla., and Southern California.

The parks are built around the stories in Rowling’s original series, putting their development in the purview of her original contract with the studio. Behind each development, executives say, is an expectation she and her team will have signoff on matters large and small.

In Tokyo, fans buy trunks that look ready for boarding at Platform 9¾, used by young wizards to ride the train to Hogwarts. Hufflepuff cardigans ($90) and personalized wands ($79) can complete the look.

“The closer you can get people to touch and feel, the more success you can have,” said Simon Robinson, Warner Bros. Discovery Studios’ chief operating officer.

Another lucrative part of the franchise is the blockbuster “Hogwarts Legacy” videogame, the bestselling title of 2023, with more than 24 million copies sold, generating more than $1 billion in revenue. The game’s performance—especially coming after Rowling’s tweets—reminded executives anew of the cash machine the author’s creation remains.

For years, Rowling eschewed some mobile-game ideas, worried that her characters could be used in ways that might exploit children and get them to spend their parents’ money without permission. But mobile games such as “Magic Awakened,” which allows players to role-play as new Hogwarts students, eventually made it to market.

The division overall has enjoyed greater flexibility than its film and TV counterparts.

“Hogwarts Legacy,” for instance, had a notable element: It didn’t feature Harry Potter. Instead the game takes place in the 1800s, with allusions to characters who readers would know but with a kind of literary distance that gave its designers storytelling license.

A videogame based on the Hogwarts game of Quidditch is among the next projects, after engineers overcame an early snag. Building the game, they realized systems wouldn’t run as smoothly if they featured seven players on each Quidditch team, as portrayed in the book.

Reducing the number of players on a team, though, contradicted Harry Potter lore.

Rowling allowed it. The game is now in development.

Write to Erich Schwartzel at erich.schwartzel@wsj.com
 
https://www.msn.com/en-us/news/world/can-warner-bros-uncancel-jk-rowling/ar-BB1iNy6j

Can Warner Bros. Uncancel J.K. Rowling?
The studio’s new boss, David Zaslav, sees his mission as salvaging a rocky relationship with the creator of Harry Potter

by Erich Schwartzel

Updated Feb. 24, 2024 - 12:12 am EST

To Warner Bros., the Hollywood studio that brought Harry Potter to life in blockbuster movies and theme-park attractions around the world, J.K. Rowling may just as well have been wearing an invisibility cloak.

It was early 2022, and the Harry Potter author had avoided executives for more than two years. She’d recently skipped a reunion special that streamed on the company’s Max service, a notable absence amid the now-grown stars of the films. When she soon after attended the premiere of an installment in the spinoff “Fantastic Beasts” series, she didn’t pose for photos with the cast.

The stars who had embodied her iconic characters wanted little to do with her. Critics and former fans had spent the past two years castigating the author for public comments on gender and sex that they saw as attacks on transgender rights. When Warner didn’t rush to her defense, she felt betrayed by a company that had collected billions of dollars from her creation.

Then, like a letter arriving via owl post, word came that David Zaslav, the new chief executive of the studio’s parent company, Warner Bros. Discovery, wanted to try to repair the damage. Zaslav had started his new job when an associate told him to get on a plane to the U.K. if he wanted a chance at winning over the writer who controlled his company’s most valuable property.

Sitting across the table from one another at a London supper club soon after, Rowling and Zaslav spent four hours discussing their childhoods, their families, how they weathered Covid-19. Zaslav wanted to breathe new life into the Harry Potter franchise, seeing a new TV show as a potential tentpole in his streaming strategy. But he needed to use a light touch—this was about salvaging a relationship so complicated and emotional that many have described it not as a business partnership, but as a marriage.

“What was it like taking over this company?” Rowling asked him, according to a person familiar with the exchange. “What is your ambition?”

“A big part of it is you,” Zaslav replied.

Keeper of the keys

Over much of the past 25 years, J.K. Rowling held remarkable sway over the executive suite at Warner, which bought the rights to her fantasy series when she was an unknown writer. As Harry Potter’s popularity grew, Rowling’s power soared. Over time she exerted de facto control over the critical Warner asset, vetoing ideas, limiting its storytelling scope and issuing verdicts at biannual gatherings that Rowling referred to as “Ministry of Magic” meetings.

Executives flew across the Atlantic to charm her, or patch things up after a screaming match. For much of her partnership with Warner Bros., Rowling has largely kept her distance from the studio team, heightening an aura of impenetrability and suspicion. The few people who interact with her flex that closeness by calling her “Jo.”

The arrangement was tested time and again, but the results were undeniable, as Warner churned out one hit Potter movie after another for a decade, ending with 2011’s “Harry Potter and the Deathly Hallows: Part 2.” More recently, a growing number of theme parks and other in-person attractions and a hit videogame have expanded the franchise’s presence around the world.

Now, Zaslav wants to write a new chapter in the once-in-a-generation franchise, in the hopes of sparking a magical turnaround in his company’s fortunes. Since taking over as CEO in April 2022, following the merger of WarnerMedia and Discovery, Zaslav has struggled to convince Wall Street that he can win in the cutthroat streaming business, where subscriber growth is anemic and profitability inconsistent. Warner shares are down nearly 65% since the merger. That includes a significant drop Friday, after the company reported lower revenue, a $400 million loss and fewer streaming subscribers in the U.S. and Canada.

Zaslav came to Hollywood presenting himself as a talent-friendly studio mogul. But he quickly made enemies. A cost-cutting campaign purged several TV series from the company’s streaming service and shelved movies like “Batgirl” and a new Looney Tunes feature before they had even aired. Partying with fellow millionaires at the Cannes Film Festival last May while picketing TV writers struck for better pay in Los Angeles didn’t help his case.

He can’t afford to alienate Rowling too. She is the last member of what was known internally at one time as Warner’s “A+ talent” crew, a group that included only two other members: Clint Eastwood and Steven Spielberg.

But now, Eastwood is 93 years old. Spielberg made his last two movies at other studios. Rowling appears to be the last one left.

This article is based on interviews with people familiar with Rowling’s relationship with Warner, including current and former employees of the entertainment giant and associates of the author.

A representative for Rowling said the author declined to comment. Her primary business partner, Neil Blair, said: “We pride ourselves on delivering best-in-class work for fans of the Harry Potter franchise globally. We hope under the new leadership at Warner Bros. Discovery that this will continue together, with the same care and excellence which the franchise has been synonymous with for over twenty-five years.”

The boy who lived

Warner Bros. was early to the Harry Potter phenomenon. The studio secured the rights to adapt the series after an eagle-eyed producer, David Heyman, read the unpublished manuscript of Rowling’s debut novel, released in the U.K. as “Harry Potter and the Philosopher’s Stone.” Heyman took the idea to Warner Bros in early 1997.

Rowling wasn’t paid an impressive amount for the deal, whose terms gave the studio vast creative control over the property, reflecting her status as an unproven literary talent.

As millions soon came to learn, “Harry Potter and the Philosopher’s Stone” had been written by a single mom not far from welfare, stealing time to write while her baby slept by her side at Nicolsons, an Edinburgh cafe whose workers didn’t mind if she stretched a single cup of coffee for two hours.

By the time the third book, “Harry Potter and the Prisoner of Azkaban,” was released in 1999, Pottermania was in full swing. The novels were bestsellers that inspired children’s names, tattoos and release parties flooded with young readers dressed in capes and glasses—fake scars scrawled on their foreheads. She not only got kids to read, she got them to line up for hours outside of bookstores for a chance to do so. The closest comparison many could find was Beatlemania.

That year, Rowling sat for an interview that would prove an early indication of the protectiveness with which she would guard her creation. It was with Lesley Stahl of “60 Minutes,” who explained how Rowling was turning down dozens of offers to license her characters to companies, from margarine producers to Boeing.

Toward the end of the interview, Stahl outlined a future where Harry Potter is in theaters, on TV and on toy shelves.

“I don’t know about the television series…,” Rowling said, shifting in her seat and growing uncomfortable. Action figures? She couldn’t hide her disgust at the thought.

“I’m a mother. I hate action figures,” she said, covering her mouth as though shocked at what’s coming out of it. “If the action figures are horrible, just tell the kids that I said, ‘Don’t buy them.’ ”

Then she added two words that would echo throughout studio halls in Los Angeles for years to come: “Sorry, Warners.”

Fantastic films and where to find them

Over the next decade, Warner adapted Rowling’s Harry Potter books into eight movies. Seven of them are among the studio’s 25 highest-grossing films of all time. All told, the series collected nearly $8 billion at the global box office before ending in 2011.

But when Kevin Tsujihara took over as head of the Warner studio in 2013, he saw a franchise collecting dust, and had a challenge: What came next? Rowling had distanced herself from the studio, and Tsujihara flew to Scotland, where she lives, to reset the relationship.

Out of that rapprochement came an agreement to produce a new film series titled “Fantastic Beasts and Where to Find Them,” based on a spinoff book that takes place in the same wizarding world that Harry Potter lives in. Rowling, who had not adapted the Harry Potter books for the screen, wanted to write the Fantastic Beasts screenplays herself.

Tsujihara accelerated efforts to build a franchise team crossing film, consumer products, live attractions and other divisions, with one leader based in Los Angeles and another, per Rowling’s request, based in London.

A new enthusiasm infused the effort. Executives studied longstanding franchises to understand how a brand could become an “always-on” property.

George Lucas had allowed writers to expand the Star Wars universe with novels and TV series years after he’d finished directing the films. Jurassic Park and Batman have been revisited by different writers and directors time and again.

Harry Potter, by contrast, had a creator who didn’t want to lose any control.

No detail was too small. At one point, Rowling wrote executives to ask about the chocolate used to make “chocolate frogs”—a sweet featured in the books—that fans can buy at the parks. Why, she asked, was it not sourced fair-trade?

The incremental requests added up to significant contractual changes, turning a once-lopsided deal into one that granted her more rights and revenue as her stature grew. The new perks range from a bigger cut of merchandise sales to an understanding her team has influence over who on the Warner Bros. side manages the franchise.

Supporters say Rowling’s restraint has served her creation well. Harry Potter over the years avoided the franchise fatigue that would befall marquee Hollywood properties like Marvel and Star Wars, which lost some fans amid a glut of film and TV programming.

As Warner worked on Harry Potter’s next phase, executives had to rely on Blair, Rowling’s business partner, as the key liaison. A lawyer who had once worked for Warner, Blair had helped write her original contract. After that deal was signed, she hired him to run her business out of the U.K. He updated her on the studio’s ideas and pitches about once a month, visiting her home in Scotland, but Warner executives often felt left in the dark about what details he presented to her.

Most direct facetime with Rowling came at more infrequent Ministry of Magic meetings, held in London and New York. Warner employees would spend weeks preparing.

Inside the meetings, Rowling was often approachable and focused—one attendee noted that she never looked at her phone. But when things grew heated, over a contractual point or storytelling disagreement, the mood could get combustible. Screaming matches. Threats of boycotts. Tears.

Rowling often attached her personal history to the business at hand. At times she referred to her past as an abused woman, saying a group of men telling her what to do reminded her of her previous marriage, during which she has said her husband, Jorge Arantes, barred her from having her own house key and searched her handbag when she returned from trips out. (Arantes couldn’t be reached. In a 2020 interview with the British tabloid the Sun, he denied any “sustained abuse” in the relationship but admitted to slapping Rowling on the night she left him.)

At other times she invoked her time as a single mother, saying the characters under debate were like her children.

Warner executives, certainly sympathetic to her history, didn’t know quite how to respond, and treated her as a de facto decider of matters large and small—even if, contractually, they didn’t have to.

They feared she would speak out if she disapproved of any Harry Potter item, discouraging millions of loyal fans from supporting it.

Around the studio, the refrain went: “We don’t want her to ‘60 Minutes’ us again.”

Dueling views

The studio’s belief that Rowling should be the primary ambassador for the Harry Potter brand lasted for the first 21 years of the Warner Bros. relationship. Then, in 2019, Rowling found herself at odds with Warner Bros. employees and even some fans over comments she’d posted to Twitter concerning gender and sex.

Rowling had started by posting support of a London woman who had lost her job over what she called “gender critical” statements that included the belief that it is impossible to change one’s sex.

In Rowling’s view, the woman was simply standing up for the notion that “sex is real.” Six months later, Rowling mocked a newspaper headline for using the phrase, “people who menstruate.” She posted on Twitter: “I’m sure there used to be a word for these people. Someone help me out. Wumben? Wimpund? Woomud?”

Rowling, who had long publicly supported progressive candidates and repeatedly lampooned Donald Trump, became a world-famous enemy of some trans-rights advocates. Rowling responded to critics regularly, including in an extensive essay detailing the personal history that brought her to her stance.

“I refuse to bow down to a movement that I believe is doing demonstrable harm in seeking to erode ‘woman’ as a political and biological class,” she wrote. “I stand alongside the brave women and men, gay, straight and trans, who’re standing up for freedom of speech and thought, and for the rights and safety of some of the most vulnerable in our society.”

Rowling said she believed a vast majority of trans people did not pose any threat but that “any man who believes or feels he’s a woman” should not be permitted automatic access to bathrooms or shelters reserved for women.

Transgender advocates called her comments a “mountain of lies.” Fan sites dedicated to Harry Potter pledged to stop mentioning the woman who’d created the world they loved. Death threats against Rowling mounted.

Each time a new Rowling tweet about trans issues appeared, the Potter managers at Warner Bros. tried to work through their disappointment. Some agreed with her, others didn’t, but Rowling’s remarks threatened to drag an unimpeachable brand into a political maelstrom.

Executives began surveying the global fan base to anticipate how the author’s views might dent sales. The answer: not much. For the most part, Rowling’s statements had affected some peoples’ opinion of her, for good or ill, without having a material impact on the Harry Potter brand or business.

A smattering of Harry Potter fans claimed they would stop buying new books or products that put more money in Rowling’s pocket. But many responded like Aidan Stanley, a 26-year-old from Arizona first introduced to Harry Potter at age 4. He’s read the original seven books three times and plans a movie marathon each Christmas with his wife. Last year he played the latest Harry Potter videogame.

But Rowling? “She’s kind of whatever,” he said, speaking last month at the Wizarding World theme park in Southern California, clad in a Gryffindor robe and carrying his own wand. “I could not care less” about her comments, he said.

“I grew up with it, so I’m never going to be torn away from it.”

The Battle of Hogwarts

In June 2020, as the controversy reached a high pitch, Warner issued a statement: “We recognize our responsibility to foster empathy and advocate understanding of all communities and all people, particularly those we work with.”

Rowling wanted a stronger showing of support. Studio leaders felt they could not offer one without angering employees or other creative partners, such as the Wachowski sisters, trans women behind Warner’s Matrix series.

The core trio of actors in the Harry Potter films spoke out against her. Daniel Radcliffe, who’d portrayed the title character from ages 12 to 21, issued a statement soon after Rowling’s 2020 comments, saying: “Transgender women are women. Any statement to the contrary erases the identity and dignity of transgender people.”

An awkward family reunion neared. Warner’s streaming service, then called HBO Max, planned to stream a Harry Potter cast reunion in January 2022, gathering Radcliffe and other former students at the fictional Hogwarts School where the Potter series takes place.

Executives at Warner wondered how to involve Rowling. Some cast members didn’t want to see her, making one-on-one conversations between Rowling and an actor too risky to put on camera. Maybe she could narrate the special? Or appear by herself?

The problem was solved for them when word came that Rowling wanted no involvement at all in the reunion. The team behind the special was relieved.

The Chamber of Secrets

While Rowling’s relations with the Harry Potter actors frayed, Warner executives continued to pursue what had become a yearslong quest: getting a Harry Potter TV show made.

Franchise executives tried to get creative, at one point pitching her team on a stop-motion animation version of Harry Potter.

Warner executives watched in frustration as competing streaming services took off, and established franchises such as Star Wars and DC Comics became treasure maps full of potential shows.

Around three years ago, before Zaslav took over, the studio approached TV writers and asked them to brainstorm ideas in the Harry Potter universe. A prequel about the generation of wizards that included Harry’s parents was one idea. A look at a different school for young wizards was another.

The ideas weren’t presented to Rowling. Warner executives knew she had the right to kill the projects should she choose to do so.

That veto power stemmed from Rowling’s request in the early 2000s to grant her authority over “non-author written sequels,” legalese for the kind of prequels and spinoffs that the studio wanted to explore with writers other than Rowling.

The issue eventually landed on the desk of Warner’s top executives. The verdict: Rowling could have the rights for her lifetime. But that too was eventually amended at the request of Rowling’s team, so that the rights will be controlled by a literary trust when she dies, giving a representative of the author veto power in perpetuity.

Reparo

When Zaslav was named CEO of Warner Bros. Discovery in 2022, he gathered his deputies and through “sheer force of will” mandated a renewed effort among his lieutenants to get Harry Potter onto TV, recalled Casey Bloys, chairman and CEO of the company’s HBO and Max content divisions.

“Not, ‘What would you do if…’ ” Bloys said. “But, ‘We’re going to make this happen.’ ”

Warner’s HBO has a rich heritage of producing hits dating back decades, from “The Sopranos” and “Sex and the City” to “Game of Thrones” and “Succession.” Zaslav’s task: building Max into a brand of its own by bringing a new wave of must-see shows to the streaming service, while holding down costs and delivering the profits investors crave.

A Potter series would be costly, but could prove a major subscriber draw. Zaslav soon concluded, however, that the only Potter show Warner could legally pursue without Rowling’s permission was one that stuck to the stories of the original seven books, since those were firmly in the studio’s control and not the kind of prequel or spinoff she’d clawed back the rights to years earlier.

When Zaslav met with Rowling following her months of anger toward Warner Bros., he knew he was on strong footing to create a TV remake of the books, but he still wanted her on board.

“It’s just not a great creative move to have the architect unhappy,” said Bloys.

Months of talks followed as Zaslav spoke to Rowling directly. The studio pitched Rowling on the big-budget treatment that TV can afford now, in a market where per-episode costs routinely exceed $20 million. There was also the chance, through a show likely to premiere more than 20 years after the first movie, to use the series to hook younger audiences on the wizarding world.

The new series will bring to the screen subplots and tertiary characters who didn’t make the cut in the eight movies. A single season may cost up to $250 million, a reflection of the kind of cinematic, high-budget production now expected by fans in TV’s prestige era.

“Max’s commitment to preserving the integrity of my books is important to me,” said Rowling in a statement when the show was announced last April.

Max executives are meeting with writers now to hear how they would approach the TV series, Bloys said, with a small group pitching Rowling on the concepts.

When the show was announced, Rowling responded on X to disaffected fans who said they’d boycott the series because of her involvement.

“Activists in my mentions are trying to organise yet another boycott of my work,” she wrote. “As forewarned is forearmed, I’ve taken the precaution of laying in a large stock of champagne.”

Mischief managed

Zaslav has a series in development that he says will debut in 2026—and that means he has gotten a Harry Potter TV project closer to the finish line than any of his predecessors did in years of trying. Behind the thawing relations, executives say, is a shift in the studio’s approach—one that seeks to avoid alienating the Rowling camp without automatically ceding power to it either.

Billions of dollars in investment are now coming to fruition, after years of negotiation to get the author on board.

Potter theme parks and live attractions have hit nearly every country where research has revealed a high concentration of fans. A new offering just went up in Cologne, Germany, and Abu Dhabi is on the docket. Potter attractions in the U.S.—built at Universal-owned properties as part of a deal with that company—have boosted attendance at theme parks in Orlando, Fla., and Southern California.

The parks are built around the stories in Rowling’s original series, putting their development in the purview of her original contract with the studio. Behind each development, executives say, is an expectation she and her team will have signoff on matters large and small.

In Tokyo, fans buy trunks that look ready for boarding at Platform 9¾, used by young wizards to ride the train to Hogwarts. Hufflepuff cardigans ($90) and personalized wands ($79) can complete the look.

“The closer you can get people to touch and feel, the more success you can have,” said Simon Robinson, Warner Bros. Discovery Studios’ chief operating officer.

Another lucrative part of the franchise is the blockbuster “Hogwarts Legacy” videogame, the bestselling title of 2023, with more than 24 million copies sold, generating more than $1 billion in revenue. The game’s performance—especially coming after Rowling’s tweets—reminded executives anew of the cash machine the author’s creation remains.

For years, Rowling eschewed some mobile-game ideas, worried that her characters could be used in ways that might exploit children and get them to spend their parents’ money without permission. But mobile games such as “Magic Awakened,” which allows players to role-play as new Hogwarts students, eventually made it to market.

The division overall has enjoyed greater flexibility than its film and TV counterparts.

“Hogwarts Legacy,” for instance, had a notable element: It didn’t feature Harry Potter. Instead the game takes place in the 1800s, with allusions to characters who readers would know but with a kind of literary distance that gave its designers storytelling license.

A videogame based on the Hogwarts game of Quidditch is among the next projects, after engineers overcame an early snag. Building the game, they realized systems wouldn’t run as smoothly if they featured seven players on each Quidditch team, as portrayed in the book.

Reducing the number of players on a team, though, contradicted Harry Potter lore.

Rowling allowed it. The game is now in development.

Write to Erich Schwartzel at erich.schwartzel@wsj.com
Zaslav can’t uncancel Rowling. He’s a scumbag that somewhat hates animation and Looney Tunes! He needs to be fired!
 
Won't be too long someone will come along and buy WBD. That's what happens to companies that don't continually improve their product and service. Meanwhile Zaslav has already been paid - he has no incentive.

https://marketrealist.com/what-is-david-zaslavs-net-worth/
I doubt it would be Comcast (or its NBCUniversal division) that buys WBD, like rumors say. I even doubt there will be a WBD/Paramount Global merger (they’ve started to die down anyway). The only question now is who else, one that doesn’t own a major film studio?
 

Disney, Reliance Said to Ink Binding India Media Merger Pact​

Story by Anto Antony, Baiju Kalesh and P R Sanjai • 12h


https://www.msn.com/en-us/money/com...n-binding-india-media-merger-pact/ar-BB1iQQ4E
Walt Disney Co. and Reliance Industries Ltd. have signed a binding pact to merge their media operations in India, according to people familiar with the matter, as the US entertainment giant recasts its strategy amid intense competition in the world’s most-populous country.

The media unit of Reliance, controlled by billionaire Mukesh Ambani, and its affiliates are expected to own at least 61% in the merged entity, with Disney holding the rest, the people said, asking not to be identified as the information is not public.

The latest milestone, along with other details, are likely to be announced early this week, the people said.
 
https://www.yahoo.com/entertainment/blackwells-capital-calls-disney-prioritize-160836017.html

Blackwells Capital Calls on Disney to Prioritize Artificial Intelligence, Spatial Computing
by Lucas Manfredi
Mon, February 26, 2024 at 10:08 AM CST

Activist investor Blackwells Capital is calling on Disney to prioritize artificial intelligence and spatial computing as part of their pitch to turn the company’s business around.

“Disney will never be valued as a technology company so long as it does not think as a technology company,” Blackwells chief investment officer Jason Aintabi said in a video message posted on YouTube.

In a presentation to investors, Blackwells blasted the company’s spending on research and development initiatives as “anemic” compared to its peers. The presentation notes it spends just 1-2% of its average annual revenue in this area, compared to 7 to 8% at Apple, 8 to 9% at Netflix and 14 to 15% at Amazon.

The firm believes that AI could be leveraged for navigating park visits, character meet and greets, booking travel and rides and crowd control, while spatial computing could create virtual reality experiences such as a 3D lightsaber spar with a jedi or an augmented reality overlay of Mickey Mouse Clubhouse
characters and content on an app and in-home.

It adds that such a strategy around AI has the potential to boost Disney shares by as much as 129%. Disney shares are currently trading at $108.58 apiece, up 8% in the past year and 19.7% year to date.

In addition to asking the company to increase its focus on AI and spatial computing, the firm called on Disney to create an Office of the Chief Technology Officer where all the company’s divisions would report into.

It argues that the company’s current technology department leadership is currently buried under corporate bureaucracy with multiple CTOs and that the “severe technology fragmentation between the company’s segments and sub-segments” is resulting in “untapped potential for new idea generation and overlooked synergistic potential.”

Aintabi said that reporting into one chief technology officer would allow Disney to “build out a native technology stack that underpins all efforts of the corporation.”

The latest presentation comes after Blackwells proposed Disney undergo a real estate and strategic asset review, including a potential split of the company.

Blackwells has nominated Tribeca Film Festival co-founder Craig Hatkoff, former Warner Bros. and NBCUniversal executive Jessica Schell TaskRabbit founder Leah Solivan to stand election at Disney’s annual meeting in April.

“Disney should be dominating in the fields of spatial computing and AI. Few companies have the potential of Disney to synthesize these revolutionizing technologies, and relate them to consumers with the impact, and [return on investment], that Disney can. Spatial Computing has far more relevance to Disney than it does to either Apple or Meta, for example,” Aintabi said in a separate statement. “Electing Leah Solivan to the board of Disney, will add considerable technological and entrepreneurial expertise, and drive greater management accountability around Disney’s adoption of transformative technologies.”

Disney’s annual meeting is set for April 3.

The post Blackwells Capital Calls on Disney to Prioritize Artificial Intelligence, Spatial Computing appeared first on TheWrap.
 
https://www.latimes.com/entertainme...ltz-proxy-fight-disney-bob-iger-heinz-snapple

Inside Nelson Peltz’s fight against Disney and Bob Iger - Los Angeles Times

by Stacy Perman
2/26/2024

This month, after Walt Disney Co. reported stronger-than-expected earnings, it appeared that the promise of Bob Iger’s return as chief executive might finally be on track to put the magic back into the kingdom.

After a year that saw the entertainment giant buffeted by Hollywood strikes, major layoffs and stock price stumbles, the earnings report (and several headline-making announcements) sent Disney’s shares soaring, achieving the stock’s best day on Wall Street in three years.

The strong showing also appeared to deflate activist investor Nelson Peltz’s efforts to mount a boardroom shakeup at Disney’s upcoming annual shareholder meeting in April.

But Peltz, 81, who was once described as having “a piratical charm and a velvet glove,” refused to back down. Within days, the pugilistic investor was throwing shade on Iger and Disney’s board, and criticizing their plans to move the company forward, vowing to continue his proxy fight against Disney — his second in less than a year.

“These pronouncements, this reminds me of a politician making election day announcements versus State of the Union speeches. State of the Union is what I want to hear about, not election day promises,” he said, during an appearance on CNBC’s “Money Movers.”

For those who know Peltz, the CEO and founding partner of Trian Partners, this was more than just showmanship.

The billionaire investor has a history of waging vitriolic battles with major companies. As he has said, “If we can’t agree on the problem, we have to go to war.” His strategy of demanding board seats and implementing change has generated a raft of big wins.

But with Iger having regained trust with many shareholders, Peltz’s bet on Disney is looking increasingly risky. Whether his fight with the Mouse House will end in a spellbinding triumph or an embarrassing failure, Peltz has dug in. He now holds a weakened hand, and this could end up being one of his rare misfires.

Investors and activists have been unusually blunt about Peltz’s proxy fight, calling it quixotic.

“I see no indication of widespread shareholder support for what he’s doing,” said Nell Minow, a shareholder rights activist and vice chair of ValueEdge Advisors. “The first thing you have to do is you’ve got to find a target that everybody’s mad at, and you just don’t have enough people that are mad at Disney.”

Peltz, through his representatives, declined to comment.

A spokesperson for Disney declined to comment beyond the company’s proxy statement.

A different kind of corporate activist

Peltz is among a powerful cadre of activist shareholders — a class that includes Carl Icahn, Bill Ackman, Dan Loeb and Paul Singer — who have forced companies to change through public challenges, backed up by sizable stakes in them. While these fights have become something like an elegant cage match, they have also become a fundamental part of the corporate landscape, changing the ways in which boards interact with shareholders.

Last year, activists launched 183 campaigns, up 21% from the previous year, according to the Lazard Annual Review of Shareholder Activists. In North America, they won 88 board seats through proxy fights.

Peltz eschews the moniker “activist investor” and, unlike some of his cohorts, he tends to nominate himself for a board seat. He’s known for taking long-term positions, working to revitalize companies rather than leverage them up or sell them for parts.

“People talk about him as a corporate raider. He’s not the corporate raider like Carl Icahn,” said Los Angeles investor Lloyd Greif. “I think he’s much more experienced in running companies. A lot of these guys were financial engineers, and they would come into a company and immediately look at, how do we break this company up to maximize value.”
With a helmet of white hair and nattily dressed, Peltz retains traces of his Brooklyn childhood, chiefly his accent, but also his forthright, pull-no-punches style.

In 1962, bored, he dropped out of the Wharton School at the University of Pennsylvania and headed to Maine to be a ski bum.

However, when the snow melted in the spring, he returned home to work as a truck driver at his family’s business, A. Peltz & Sons, a wholesale produce distribution business founded by his grandfather in 1896 that expanded into frozen foods. Nelson Peltz earned $100 a week. His plan was to save enough for gas money to move to Oregon to teach summer race camp.

Peltz never made it.

Working for the business, he noticed numerous missed opportunities and mistakes. When he mentioned his observations to his father, the elder Peltz responded, ”Why don’t you stay for a year and address them?” he told students at the University of Miami business school.

Over the next 15 years, the younger Peltz grew the business. He acquired other companies, built a sales force and brought in his older brother Robert and a business partner, Peter May.

The company, now called Flagstaff Food Service, went from annual sales of $2 million to $150 million and became the largest food distributor in the Northeast. In 1971 the company went public; it was sold eight years later.

While Peltz was building up his family business, he also began a small investment fund, using the money he earned from his bar mitzvah and funds from family and friends.

By the 1980s, Peltz amassed a multimillion-dollar fortune through a number of leveraged buyouts financed by junk bonds sold by Michael Milken.

In 1983, along with his partner May, Peltz bought a stake in Triangle Industries, becoming its CEO and making it the world’s largest packaging company. He sold it five years later for nearly $1 billion to French conglomerate Pechiney, S.A.

Peltz’s early successes led to a string of even bigger and more audacious wins.

His most celebrated deal was the $300-million acquisition of the flailing iced tea brand Snapple from Quaker in 1997.

Within three years, he brought back its fizzy appeal and sold it for more than $1 billion to Cadbury Schweppes. The deal became the subject of a Harvard Business School case study and earned Peltz a reputation as one of America’s princely turnaround kings.

In 2005, he founded Trian Fund Management, an alternative investment management fund, with May and Edward Garden, his son-in-law. Trian bought up significant stock positions in companies such as Heinz, Wendy’s and DuPont and demanded board seats and proposed significant changes, often clashing with their CEOs.

“I like fixing things and I like growing things,” Peltz once explained to Bloomberg Wealth, adding, “We wouldn’t be there if they were really doing well.”

Peltz became known as an “operational activist” who wasn’t afraid to take on large-cap publicly-traded corporations, and he wasn’t one to back away from a fight. He had an intense persistence and attention to detail, and often became a lightning rod, if not an unwelcome change agent, for the companies in his sights.

When Peltz took on the H.J. Heinz Co. in 2006, the corporation rebuffed Peltz’s turnaround plan. He “doesn’t understand our business,” its chief executive, William Johnson, told the New York Times, and cautioned that if he got “on the board, you’re going to have a destabilizing situation.”

Peltz prevailed, winning a pair of board seats, and Johnson did an about-face, later saying, “He was very informed, highly-focused and an engaged director.”

Over the next seven years, Heinz’s stock price increased 61%. In 2013 the company was acquired by Berkshire Hathaway and 3G Capital in a deal valued at $28 billion; two years later it merged with Kraft Foods.
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Peltz later was invited to join the board of Mondelēz International, a global snack business.

“He provoked management and pushed the other directors to ask hard questions,” said Mondelēz CEO Dirk Van de Put. “You might not like it, but overall it was good for the well-being of the company.”

Today, Trian has $8.5 billion in assets under management and Peltz’s net worth is estimated to be $1.5 billion, according to Forbes.

Outside of the boardroom, Peltz lives large.

He married his third wife, former model Claudia (née Heffner), in 1985. They have eight children in addition to the two he had with his first wife.

The couple split their time between two mega-mansions: Montsorrel, a sprawling waterfront estate in Palm Beach, Fla.; and High Winds, set on 130 acres in Bedford, N.Y., from which Peltz once commuted to his Manhattan office in a Sikorsky helicopter. But his neighbors complained about the noise and the town took him to court. It was a rare defeat for Peltz, who lost the five-year legal fight.

Until last year, Peltz’s battles were largely relegated to the financial press. Then, he sued the Florida wedding planners who were hired to handle the nuptials of his daughter Nicola, an actor who married Brooklyn Beckham, the son of British footballer David Beckham and his wife, former Spice Girl and fashion designer Victoria Beckham, in April 2022.

In legal filings, Peltz said he fired the planners after they failed to deliver on their contractual obligations and did not return his $159,000 deposit. He said the planners “hoodwinked” him and he accused them of “falsely portray[ing] Nicola in an extremely negative light to entice the media.”

Before the parties eventually settled, the wedding planners filed a 181-page countersuit for breach of contract, calling Peltz a “bully billionaire” and making him a target of the tabloid press.

A risky Disney fight?

Peltz launched his first proxy campaign against Disney in January 2023, after an unsuccessful attempt to gain a board seat the previous year. The company’s share price was languishing and by September it hit an eight-year low, falling below $80. Trian owned about 9.4 million shares worth some $900 million; that number later swelled to 32 million shares valued at $3.6 billion.

Peltz was unsparing in his criticism: calling out Disney’s “over-the top” compensation practices, failure to implement a succession plan (in July, the board extended Iger’s contract for two more years until 2026) and weak corporate governance.

He highlighted “self-inflicted” wounds such as the $71.3-billion acquisition of 21st Century Fox in 2019, a string of box-office bombs, as well as the entertainment giant’s money-losing streaming business.

“Disney’s recent performance reflects the hard truth that it is a company in crisis,” said Trian in an excoriating statement.
In February, when the company announced plans to eliminate 7,000 jobs, slash $5.5 billion from its budget and restore dividends, Peltz dropped his demands.

With characteristic hubris, he declared his proxy war was over and took a victory lap. “If a guy is going to do everything you wanted him to do, where’s the argument?” he told Fortune.

During the following months, however, as Disney’s stock price stalled, so did Trian’s confidence in the company’s ability to get on the right path.

Last fall, Peltz fired off his latest proxy salvo — this time agitating for multiple board seats, one for himself and another for Jay Rasulo, a former Disney chief financial officer.

“It’s déjà vu all over again,” Trian said in a statement. “We saw this movie last year, and we didn’t like the ending.”

For years, Peltz’s shareholder activism was restricted mostly to shaking up the boardrooms of American corporations, with big consumer brands like Wendy’s, Heinz and DuPont that sold tangible products like hamburgers, ketchup and chemicals, not dreams.

His detractors say Peltz’s war with Disney is misguided.

“I don’t think that anything in his track record indicates that he can come up with a good strategy for this particular company,” said Minow. “He’s an expert in balance sheets, but I don’t know that in a company like Disney that’s what you need.”

“He’s offered no ideas for the Disney strategic situation because he has no ideas and he has no background in media,” said Jeffrey Sonnenfeld, founder of Yale’s Chief Executive Leadership Institute. “He’s an industrial consumer-goods guy with no media, technology or media marketing background.”

It is much the same argument that Disney itself has made in its rebuffs of Peltz.

Peltz “had not actually presented a single strategic idea,” said the company in a letter to shareholders, noting that his background in consumer goods did not align with “a business that is primarily driven by creative talent and focused on delivering uniquely memorable customer experiences.”

But Peltz has countered, at least in broad strokes, that the company is under-performing and that he wants to work with the board and management to set ambitious but achievable targets to improve corporate governance, streaming, ESPN and the movie studios, creativity and the parks and experiences.

“Nelson knows brands and Disney is ultimately a company of brands,” said someone familiar with Trian who was not authorized to comment publicly. “And Jay [Rasulo] spent three decades there in a variety of roles. He was CFO during a time when stock price increased by more than 250%, and the company paid more than $8 billion in dividends.”

In the coming weeks, Trian plans is expected to make public its “white paper,” the firm’s detailed analysis outlining Peltz’s case for Disney.

In the meantime, Peltz has found support in other influential quarters.

Trian’s website has a page showcasing the testimonials of 11 CEOs of companies the firm has invested in and/or engaged in proxy fights with, including those of Procter & Gamble and DuPont.

Last October, former Marvel Entertainment Chairman Isaac “Ike’’ Perlmutter joined forces with Peltz, entrusting his Disney shares to Trian (hence the massive bump to 32 million shares last fall). Perlmutter was dismissed from his role at Marvel last March as part of a larger restructuring. Disney has claimed that the former Marvel executive has a personal agenda against Iger.

Perlmutter did not respond to requests for comment.

More recently, Peltz’s efforts were buttressed by Elon Musk, another bête noire of Disney.

In January, Musk, who has bitterly criticized Disney for pulling its advertising from his social media platform X, formerly known as Twitter, wrote on the site: “Brutal track record. Shareholders have been incredibly poorly served by the @disney board!”

The following month, Musk appeared on the red carpet with Peltz in Los Angeles for the film premiere of “Lola,” the directorial debut of Peltz’s daughter, Nicola Peltz Beckham, who also stars in the film. Musk then kicked his own feud with Disney up a notch, offering to help pay legal fees for those suing the company for discrimination.

With the April shareholder meeting fast approaching, things are getting heated.

In February, a group representing Blackwells Capital tweeted out part of Wendy’s 2023 proxy statement that showed Peltz, a board member, billed the company nearly $600,000 for his personal security, writing: “Who knew that hamburgers could be so dangerous! Is this how Peltz plans to perform for @Disney shareholders?”

Peltz, however, remains resolute and unmoved. On Valentine’s Day his firm sent shareholders a new fight letter. It was illustrated with an unflattering cartoon of Disney’s board throwing spaghetti at a wall.

Times staff writer Meg James contributed to this report.
 
Important to be in on the (insert the silicone valley buzz word of the moment).

Most people: Disney has to get back to basics. Laser focus on what it does best: Tell amazing stories and provide memorable experiences.

Blackwell: Disney will never be valued as a technology company so long as it does not think as a technology company.

Disney is not a tech company and I don't think they even want to be. At best I would consider licensing out to actual tech companies and let them come up with compelling AI and spatial computing ideas. Much the same as they do for video games.
 
Important to be in on the (insert the silicone valley buzz word of the moment).

Most people: Disney has to get back to basics. Laser focus on what it does best: Tell amazing stories and provide memorable experiences.

Blackwell: Disney will never be valued as a technology company so long as it does not think as a technology company.

Disney is not a tech company and I don't think they even want to be. At best I would consider licensing out to actual tech companies and let them come up with compelling AI and spatial computing ideas. Much the same as they do for video games.
On this, we agree.
 
How long before this comes to a Disney Quick Serve..just kidding, I hope.

Wendy's planning Uber-style 'surge pricing' where burger prices fluctuate based on demand​

https://nypost.com/2024/02/26/business/wendys-planning-surge-prices-based-on-fluctuating-demand/

Hopefully none of the aspiring board members are reading this or it will end up being thrown against the wall!
Nelson Peltz, Wendy's Board Member.

My first thought is you just chase away customers from times they like to eat, Lunch and Dinner and get them to go elsewhere. It is only $1 but it cant be a good experience to be in line to order and then watch the price increase as you get closer to the till. Lol

McDonald's announced on their last earnings call that they are seeing customers make different choices bc of the higher prices on their menu. People are asking themselves do I want a Big Mac meal for $10-$12 or should I sit down at a half decent lunch spot for $12-$15 or should I eat healthier if I am gonna spend more.
 
Nelson Peltz, Wendy's Board Member.

My first thought is you just chase away customers from times they like to eat, Lunch and Dinner and get them to go elsewhere. It is only $1 but it cant be a good experience to be in line to order and then watch the price increase as you get closer to the till. Lol

McDonald's announced on their last earnings call that they are seeing customers make different choices bc of the higher prices on their menu. People are asking themselves do I want a Big Mac meal for $10-$12 or should I sit down at a half decent lunch spot for $12-$15 or should I eat healthier if I am gonna spend more.
OMG, I forgot Peltz was a Wendy's board member...you can't make this stuff up...
 
Wendy's stock is not reacting either way - just down 9 cents currently. On a side note, wow, WEN is yielding 5.5%, that sounds like a nice quarterly payout but probably a warning sign for that cutthroat industry.
 

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