Bob Iger returns! Various activists have mounted pressure on the Disney company in recent years. One of these activists is Third Point, a venture of billionaire Daniel Loeb. In July, Loeb announced that a major change was planned to take over Comcast Corp's streaming service. In a subsequent tweet, the investor said he had more knowledge about ESPN's value in Disney. Further shareholder pressure is from the Trian Fund Management LP, co-founded by Nelson Peltz. Earlier this month he bought more than $800 million worth of Disney stock, according to a WSJ report on Monday.
Chapek's short tenure
Bob Chapek started his journey as chief executive officer of the Walt Disney Company in 2020. After succeeding Iger as CEO, Chapek was immediately challenged as he was tasked to guide Disney through the pandemic. After two short years, however, Disney decided Iger could better supervise its future. Away from the pandemic, Chapek served in an enviably brief but rocky position at Disney. Chapek previously served as a director of Disney Parks, Experiences and Products before taking over the role of Iger. He was faced with many questions about salary especially with Scarlett Johansson, the biggest star of the firm.
It was not all bad for Chapek. He did help navigate Disney through the worst pandemic ever seen in recent history. With closures to the parks, Chapek turned toward streaming services and launched Disney+, which has since been a big hit. Susan Arnold, Disney's board chair, thanks Bob Chapek for navigating the company through the pandemic.
Why was Chapek replaced?
During Chapek's tenure as the chief executive officer, he was constantly surrounded by criticism over political controversies, poor business decisions, and poor public relations missteps. Couple those issues with poor earnings. Disney shares are Dow 41.4% in the past year, recently hitting a 52-week low on November 9th; it is no wonder why Chapek was fired as CEO.
Most recently, Chapek's handling of public relations for the issues with Scarlett Johansson, Florida's “Don't Say Gay” Bill, and even the new revelation that Disney had been cutting “overly gay affection” scenes from Pixar Movies have led to the public being highly dissatisfied with Chapek.
Further issues with public relations, Chapek had plans to freeze hiring, stop all nonessential travel, and expect layoffs. Coupled with increasing the prices for park prices for the Disney theme parks, Genie Plus, and increasing the prices for Disney+ Streaming services. These are just a few issues the people have with Chapek that made him one of the least popular CEOs in America.
Despite Disney's issues with Chapek, he will still receive a large severance package along with his departure.
Who is replacing Chapek?
Bob Iger has been appointed Disney's new chief operating officer, replacing Bob Chapek in a shocking late Sunday announcement. The news of Iger's return as CEO was announced to Disney employees when Iger wrote to his employees in an email. Iger is currently under contract for two years as the CEO and will help identify his replacement, who will become Iger's handpicked successor.
Bob Iger has replaced Bob Chapek as Disney's CEO in a surprise move to Hollywood
In his first term at Walt Disney, Robert Iger is back to take on his new media empire. This is shocking news for one of our biggest companies. Chapek stepped down immediately from his post after Iger was elected CEO. It added that the company credited Bob Chapek with helping the company through the most challenging pandemics during its long career.
Is Bob Iger coming back as CEO?
Mr. Iger will return as CEO in 2022 after a fifteen-year tenure from 2005 to 2020. Igor had only left his position for a short 11 months. CEO Iger left Disney originally because he felt he was becoming too dismissive of other people's opinions. He felt he was becoming too overconfident, which he felt was hurting the brand. This level of emotional intelligence is almost unheard of, especially in someone as powerful as Iger. Disney has only had seven CEOs, so it is a highly coveted position to obtain. For Iger to realize that he was becoming more of a hindrance than a help showed an extremely high level of emotional intelligence.
Why did Disney bring back Bob Iger?
Earlier this year, Disney+ reported that its revenue fell by nearly 1.6 billion, which could explain why Iger was brought back. During Iger's first tenure as CEO, he helped acquire Pixar Animation Studios, LucasFilms, 21st Century Fox, and Marvel Entertainment, some of the most valuable film properties in the world, and have helped make Disney an entertainment giant. These major companies boosted their market capitalization five-fold. During Iger's first tenure as CEO, Disney's annualized shareholder returns were more than 14%, above their rival Comcast. Furthermore, between the pandemic and political turmoil, Disney needs a CEO trusted by both Wall Street and Hollywood.
Disney resigns Bob Iger as CEO in a bid to boost growth
The Walt Disney Company's new chief executive officer will be Bob Iger for just one year. The news comes unexpectedly when Disney's entertainment company hopes to boost investors. He served as CEO for fifteen years before retiring last year and serving as chairman. In April 2019, a pandemic hit COVID-19, resulting in the closing of all Disney parks and a global ban on visitors. Just after the news of the firing of Chapek and hiring of Iger on Sunday night, Disney shares surged 9% in premarket trading, which values the company at about $182 million.
Furthermore, the Frankfurt-listed stock jumped 10% in European trading. Iger is confident that Disney employees and Cast Members can achieve great things even in these uncertain times. Iger is uniquely situated to lead Disney to a promising future since he is greatly admired by Disney employees and his senior leadership team. Finally, Bob Iger returns!