finance
Every company has a story. Learn the playbooks that built the world’s greatest companies — and how you can apply them.
In 1984, The Walt Disney Company was in severe distress, with its stock price plummeting and facing corporate raiders. The company's core animation business was nearly break-even, with most profits coming from parks and consumer products, indicating a broken business model.
To fend off corporate raiders in 1984, Disney management made a deal with the Bass family and their investment manager Richard Rainwater. This resulted in the Bass family acquiring approximately 25% of The Walt Disney Company, making them the largest shareholder.
A group of talented animators, including John Lasseter, Brad Bird, Tim Burton, John Musker, Andrew Stanton, Pete Docter, and Brenda Chapman, were trained at CalArts, an institution founded by Walt Disney. Despite being hired by Disney Animation right out of school, they were later fired.
Disney's empire extends far beyond its well-known characters and theme parks, encompassing the Simpsons, Avatar, National Geographic, and the entire 20th Century Fox studio. It also owns a broadcast network (ABC), ESPN, and even historical assets like the ocean liner Queen Mary.
Disney is undergoing a major transition to streaming with Disney Plus and Hulu, involving significant investments that have resulted in billions in losses over five years. This shift occurs as traditional revenue streams like movie theaters and cable subscriptions (including ESPN) are shrinking.