Annual Report Analysis of Disney

                   Annual Report Analysis of Disney

   On December 15, 2017, Disney announced that it would buy some of fox's assets for $52.4 billion, the largest deal in Disney's history. When the deal closes, the traditional six Hollywood studios will become the "big five”. At the request of the board of directors of 21st century fox and Disney, Robert a.Iger, CEO of Disney, has agreed to remain chairman and CEO of the company until the end of 2021."Mr. Iger's tenure was extended from 2015 to June 2018 and again from July 2019 to the end of 2021. Since taking over in 2005, Mr. Iger has led four major mergers and acquisitions in Disney's history, totaling about $70 billion. It is these acquisitions that have helped Disney emerge from its slump to become the world's most valuable entertainment company. Disney’s annual profits have more than tripled since he took over. As of the end of September 2017, Disney's 2017 financial report shows that the company's annual net profit is expected to reach $8.98 billion。

Disney was a mess when Iger took over from former boss Michael Dammann Eisner in 2005.Michael Eisner, the former boss, wielded a lot of power . Disney’s market capitalization is 30 per cent below the media index since 2000.In the most prominent example of Disney's infighting, Mr. Eisner's autocratic, high-stakes decisions bypassed the board process and went ahead with the hiring of his childhood friend Michael Ovitz as President, only to be forced to pay $200 million in damages when the two departed after 15 months because of a feud.When the board forced Eisner to end his tenure early, Iger, Disney's chief operating officer at the time, aggressively pursued three visions of change: investing in creative content, technological innovation and international expansion. In the end, Mr. Iger succeeded in winning over his successor with good exposition, a reputation for professional ethics and candor. In 2005, when Iger took over, Disney was the second-lowest grossing company in the "big six," and in 2016 it was firmly in the top slot.Mr Iger prefers to acquire established companies and products rather than nurture them to master exclusive content. If you stand down and judge Iger's buying behavior, you can use the long board theory to explain it. In the past, the bucket theory believed that how much water a bucket could hold depended on the shortest piece of wood. But today, longboard theory holds that a person's accomplishments depend on his or her own long board. In the Internet age, connections generate value, and any shortcoming can be remedied through cooperation. As long as there is a skill, there is no shortage of partners to find. Compared with other companies, Disney owns media network, theme parks and resorts, film and television entertainment, consumer goods and interactive media, and has a more complete industrial chain than its peers. In 2016, Disney's total annual revenue was 55.632 billion us dollars, of which media network revenue accounted for 42.58%, theme parks and resorts accounted for 30.51%, film and television entertainment accounted for 16.97%, consumer goods and interactive media accounted for 9.94%.Film and television entertainment is the power core of Disney industrial chain and the content platform of IP products. In general, the quality of IP is related to the development of business segments in the entire industrial chain. This acquisition of fox can be said to be another expansion of Disney's IP library. No matter in terms of audience gender and age coverage, or in terms of coverage of various themes and contents, Disney has rapidly grown and gained significant competitiveness in the market through the acquisition of proven IP of marvel, Lucas and other companies. In addition to focusing on good IP, another important reason why Iger is interested in acquisitions is that he attaches great importance to technology. Iger was set at the beginning of taking office, is committed to promoting the fusion of science and technology and content. Disney's board of directors also hides a strong team of qualified personnel in science and technology, for example: the Facebook company's chief operating officer, Sheryl Sandberg, twitter and Square's co-founder Jack Dorsey,  blackberry, chief executive officer John Chen, etc., are all joined the board of directors of the Walt Disney in Iger's tenure. The board is dominated by people with silicon valley backgrounds.