One of the most significant announcements this year has dropped from Disney. It caused many jaws to drop the news that Bob Chapek had been ousted as CEO at Disney. It was further announced that Bob Iger returns to his prior title of CEO. Iger retired 11 months ago and named Bob Chapek as his successor as CEO. However, effective 11/20/22, Iger will be back at Disney. Rumored reports are that he was approached on the Friday before the announcement.
What brought this out?
Over the past couple of years, there has been an outcry by Disney fans and guests to remove the past CEO due to constantly rising costs and less availability. The final straw appears to have been the less-than-predicted quarter during the last earnings reported. This lead to a roughly 37% slide of Disney stock. The stock has hit the same level as at the start of the pandemic stock fall. Albeit there has been a lot of volatility in the market as of late, this has made it worse. Chapek had reported plans to cut costs, including to Disney Plus as this has had increasing costs. To say Iger has a lot on his plate as he returns is an understatement.
What did Iger have to say?
Mr. Iger had postponed leaving Disney three times. Moreover, when he finally did, he appeared hesitant to do so. In contrast, Mr. Iger was adamant when senior Hollywood figures asked him in recent months if he would ever come back: his answer was simply “No.” Moreover, there had been rumors of Iger’s displeasure with how Chepek had been running Disney. Including rolling back some of the changes that Iger had made over the year. With all the changes, it will take a lot to regain some of the “magic” that was lost. However, Disney fans seem ready to embrace the change in leadership. Iger has been revered as one of the best CEOs, up there with Michael Eisner.
Bob Iger has said, “with an incredible sense of gratitude and humility — and, I must admit, a bit of amazement — that I write to you this evening with the news that I am returning.”
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