The Walt Disney Company, the magic behind the empire

Walt Disney’s journey from a small animation studio to a global entertainment empire is a story of creativity, innovation, and strategic growth. Since its inception in 1923, Disney has revolutionized the entertainment industry with groundbreaking films, theme parks, and technological advancements. Over the decades, the company has expanded its reach through key acquisitions and global ventures, solidifying its position as a media powerhouse. This article delves into the history of The Walt Disney Company, its significant milestones, stock performance, and how its market presence has evolved, offering a comprehensive look at its rise to prominence and ongoing influence in the entertainment world.

History of Walt Disney

It was in the summer of 1923 that Walt Disney arrived in California with the ambition of pitching his pilot film to a distributor – a cartoon called Alice’s Wonderland that he’d created whilst in Kansas City. The film was to serve as the pitch of a series of “Alice Comedies”. 

He found success in New York when M.J. Winkler agreed to distribute the Alice Comedies on 16 October 1923. This set in motion the establishment of the Disney Company. Originally called the Disney Brothers Cartoon Studio, with Walt and his brother Roy, it later changed name at the suggestion of Roy, to become the Walt Disney Studio.

On 1 March 1924, Disney released its first Alice Comedies short film, “Alice’s Day at Sea.” In January 1926, the company moved to its new studio at 2719 Hyperion, changing its name to “Walt Disney Studio.” The first Oswald the Lucky Rabbit cartoon was released in September 1927, followed by Steamboat Willie in November 1928, and the debut of Mickey and Minnie Mouse. By December 1929, the Disney brothers restructured their partnership into four companies, including Walt Disney Productions, Ltd.

In 1930, Disney launched the Mickey Mouse comic strip, and Pluto made his first appearance in The Chain Gang. The company continued to innovate, releasing the first full-colour cartoon, Flowers and Trees, in 1932, followed by the first Disney Academy Award Winner Three Little Pigs in 1933.

Disney’s Journey: Milestones from Animation to Global Expansion

Walt Disney’s creative ventures expanded with the 1937 release of Snow White and the Seven Dwarfs, the first feature-length animated film. Major milestones in the 1940s included the releases of Pinocchio and Fantasia, along with the company issuing its first stock in 1940. Despite the impact of World War II, Disney produced award-winning films like Der Fuehrer’s Face in 1943 and introduced the True-Life Adventures series with Seal Island in 1948.

The post-war era saw the creation of new ventures, including the founding of WED Enterprises in 1952 and the 1953 release of Peter Pan. Disney’s first live-action feature, Treasure Island, premiered in 1950, and by 1954, the Disneyland television show debuted, leading to the grand opening of Disneyland in 1955.

Through the late 1950s and 1960s, Disney introduced a series of hit TV shows, theme park expansions, and film releases, including the groundbreaking use of Audio-Animatronics in Disneyland’s Enchanted Tiki Room in 1963. By the mid-1960s, Disney expanded globally with plans for Disney World, opened the New York World’s Fair exhibits in 1964, and achieved commercial success with films like Mary Poppins. These innovations also boosted the company’s stock, reflecting growing investor confidence.

Disney’s Expansion: From Walt’s Legacy to Media Powerhouse

Following Walt Disney’s death in 1966, the company continued to grow with the 1971 opening of Walt Disney World, and subsequent innovations such as the launch of The Disney Channel in 1983 and the acquisition of Touchstone Pictures in 1984.

By the 1990s, Disney became a major player in the media industry with the acquisition of ABC in 1996 and Pixar in 2006. In the 2000s and 2010s, Disney’s dominance extended to blockbuster franchises with the releases of Pirates of the Caribbean, Marvel’s The Avengers, and Frozen. The launch of Disney+ in 2019, alongside its acquisition of 21st Century Fox, solidified Disney’s position as a media powerhouse.

Stock listing, shareholding, and market capitalisation

Disney stock is traded on the New York Stock Exchange under the ticker symbol “DIS”. The company’s market capitalisation as of 11 October 2024 is valued at US$170.94 billion, with revenue of US$90.03 billion, and a net income of US$4.78 billion.

As of 30 June 2024, the top five institutional shareholders of Disney are Vanguard Group Inc., holding 154.81 million shares, representing 8.54% of the company’s outstanding shares and valued at $14.57 billion. BlackRock Inc. follows with 122.28 million shares, or 6.74%, valued at $11.51 billion. State Street Corporation holds 77.11 million shares (4.25%) worth $7.25 billion, while Morgan Stanley owns 45.56 million shares (2.51%) valued at $4.28 billion. Geode Capital Management, LLC rounds out the top five with 36.28 million shares, representing 2.00% and valued at $3.41 billion.

The Walt Disney Company reports 3^rd quarter and 9 months earnings for fiscal year 2024

On 7 August 2024, The Walt Disney Company reported its third-quarter earnings for the period ending 29 June 2024, with revenues rising to $23.2 billion, up from $22.3 billion in the same quarter last year. Income before taxes improved significantly to $3.1 billion, compared to a loss of $0.1 billion in the prior year. Diluted earnings per share (EPS) for the quarter reached $1.43, a notable recovery from a loss of $0.25 in the previous year, while excluding certain items, diluted EPS increased to $1.39 from $1.03.

Key points

In the third fiscal quarter of 2024, The Walt Disney Company saw a 19% increase in total segment operating income and a 35% rise in adjusted EPS. The Entertainment segment’s operating income nearly tripled, driven by strong performance in Direct-to-Consumer and Content Sales/Licensing. The company achieved profitability in its streaming business for the first time, ahead of guidance, bolstered by ESPN+ and the success of Inside Out 2, which became the highest-grossing animated film and drove significant Disney+ sign-ups.

While ESPN’s operating income grew 4%, a decline in Star India led to a 6% drop in the Sports segment’s income. Experiences revenue increased by 2%, but operating income decreased by 3%, due to softer consumer demand late in the quarter. Despite this, Disney Cruise Line, Consumer Products, and international sites showed improved results.

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Disclaimer: This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

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