Disney stock climbs following Jonathan Majors decision
Disney may have to find a new villain to lead the next phase of the MCU, but investors don't mind.
Actor Jonathan Majors' run as the main villain for the next phase of Marvel Cinematic Universe is over after his conviction this week.
On the surface, the loss of Majors as a central cog in the next phase of Marvel's content generating machine seems like another catastrophic blow for Disney, which has had more than a few hiccups since Bob Iger returned to the helm.
But investors seem to have shrugged off the news on Tuesday, sending Disney (DIS) - Get Free Report shares up nearly 1% at last check during the afternoon session.
Related: Forget Ron DeSantis: Walt Disney has a much bigger problem
The two-week trial was the culmination of a domestic violence incident in March between Majors and his then-partner Grace Jabbari.
The reports that Disney had fired Majors began to surface just hours after a Manhattan jury found him guilty of reckless assault in the third degree and harassment.
Marvel and Lucasfilm have become the pillars of Disney's entertainment division in recent years. But recent flops from both studios means that a potential PR disaster in having Majors reprise his role as Kang in the upcoming "Avengers" film in 2026 is just too much of a gamble for the entertainment company.
Last month, "The Marvels" debuted with a $47 million domestic opening weekend haul. The 33rd Marvel Cinematic Universe film had the worst opening weekend for any film in the MCU.
But Disney has been signaling that it intends to cut back on the money it spends on its Marvel and Star Wars content. The move is part of a reorganization plan that includes $5.5 billion in cost cuts, $3 billion of which will be taken out of television and film content.
But some Wall Street analysts believe that those proposed cuts aren't deep enough.
"I kept thinking, how could it be so hard to turn around the best intellectual property company in the history of the world. Turns out the answer is real hard," Jim Cramer said last month.
"The company has a huge amount of bloat, or the CEO wouldn't have just said he can whack out $7.5 billion in costs instead of $5 billion like he said a couple of months ago."
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