Charlie Munger sees a whole new world facing Disney (DIS) as the investing guru no longer feels the love tonight for the media conglomerate.
"Practically every business that Disney has, has gotten tougher than it used to be," Munger said during the recent Daily Journal annual meeting, according to Motley Fool.
"Think about Disney -- once owned the world. Lion King was running a long run in the Theater District of New York. They went from triumph to triumph, marching, marching, marching. All of a sudden, practically every front, it's more difficult."
Times have definitely changed from the film studio's heyday in the 90's where its animated films dominated the box office. The company's recent box office dominance via its Marvel Cinematic Universe and Star Wars films (which Munger seemed to forget about) also seem like relics of a bygone era.
But it's not just the film studio that Munger has a problem with.
"How would you like running the sports, ESPN, now at Disney compared to its heyday? It's going to be way harder for them," Munger said.
Everything's On the Table
Disney CEO Bob Iger has already made some big decisions of late. In a recent earnings call, he detailed changes within the group's operating structure, which included 7,000 layoffs, $5.5 billion in cost cuts and a new three-part organizational structure focused on Parks, Entertainment and ESPN.
But he also said content spending would remain in the low-$30 billion range this year, and announced sequels to the popular franchises “Toy Story” and “Frozen” are in the works.
But there’s a major decision he’s still weighing. Iger said in the call that Disney “will take a very hard look at the cost of everything we make across television and film."
