Disney becomes one of Hollywood's biggest coronavirus victims
Disney's kingdom is losing its magic to the coronavirus pandemic.
Why it matters: Analysts point to Disney's healthy balance as proof that the company will weather the storm, but its experience dealing with coronavirus will fundamentally alter the way the nearly 100-year-old business operates moving forward.
Driving the news: A services union group said Sunday that Disney would furlough over 43,000 of its 75,000 employees of its Walt Disney World theme park.
- Disneyland and Disney World shut last month over the outbreak.
The big picture: Several of Disney's blockbuster films have been postponed as theaters remain shuttered. The production of other Hollywood titles is being put on hold as social distancing measures are in place.
- Disney cruise lines extended some of its temporary sailing suspensions. The company has closed most of resorts worldwide and many stores.
By the numbers: As a result of the pandemic, Disney's stock has dropped nearly 30 percentage points as of Monday from its peak in January.
- Its stock price gas reached its lowest point since 2014, erasing six years of gains that have mostly been fueled by box office dominance.
- Disney has begun increasing its access to cash so that it can weather the storm.
Between the lines: Despite the fact that TV consumption is up, Disney's flagship sports network ESPN is also being impacted by the crisis.
- On Monday, ESPN said that it's asked its 100 highest-paid commentators to take a 15% pay cut over the next three months.
Yes, but: Despite these challenges, Disney+, is flourishing as families stuck at home look for easy ways to entertain their kids.
What's next: Bob Iger, who in February announced his retirement as Disney CEO, has re-engaged with the company amid the coronavirus pandemic, N.Y. Times media columnist Ben Smith writes.
- Per Smith, Iger is helping to craft a response to the crisis to address Disney's future, including reopening the company with less office space and ending glitzy and expensive old-school television practices like TV ad upfronts.