The Walt Disney Co. can boost its stock price by almost 130% by investing in artificial intelligence, according to one of two activist investors vying for seats on the company’s board of directors.
Blackwells Capital, which has nominated three people to join Disney’s board, released its “The Future of Technology” report on Monday, which advocates for Disney to double down on tech innovation and experimentation. It calls Disney’s research and development disclosures “anemic” and argues that technology “must underpin everything Disney does.”
By investing more heavily in AI, virtual reality, and augmented reality, Disney could increase its stock price from $107.74 (at the time of the report’s release) to $246.09 per share, Blackwells argues.
“Disney should be dominating in the fields of spatial computing and AI,” Jason Aintabi, Blackwell’s chief investment officer, said in a statement. “Few companies have the potential of Disney to synthesize these revolutionizing technologies, and relate them to consumers with the impact, and ROI, that Disney can.”
Disney created a task force to study AI and how it can be applied across the entertainment giant’s properties last year. But if the conglomerate needs some suggestions, Blackwells has plenty.
For example, Disney could invest in AI assistants to help consumers navigate its parks and book rides or use AI to analyze foot traffic in real time and alleviate congestion. Disney could also use AI to let families talk to company-owned characters using ChatGPT, although it’s worth noting that Disney blocked the chatbot from collecting its content last August.
Or, if Disney wants to dive deeper into the world of VR, it could give consumers “content and character-based” experiences, such as having a “3D Lightsaber spar with a Jedi” from Star Wars. For Disney’s dabbling in augmented reality, Blackwells envisions ways to overlay characters from Mickey Mouse Clubhouse in smartphone applications and at home.
In addition to Blackwells, Disney is squaring off in a proxy battle with billionaire Nelson Peltz’s Trian Fund Management, which claims the company is suffering under poor management. The firm has nominated Peltz — the chairman of Wendy’s board — and former Disney CFO Jay Rasulo.
For its part, Disney has asked shareholders to vote for its slate of nominees, which include CEO Bob Iger and Morgan Stanley CEO James Gorman, writing that its competitors’ candidates can’t properly support the company’s priorities. Shareholders will vote on the board candidates on April 3.