One of Disney’s most successful CEOs, Bob Iger, is coming back to lead the media conglomerate once more.
Disney has reverted the CEO change that caught everyone off guard in 2020, with Bob Iger resuming his position as the CEO and taking the place of Bob Chapek, his replacement. Iger, who also holds the majority of the company’s stock, will now begin a fresh two-year tenure as CEO.
Susan Arnold, Chairman of the Board for Disney stated, “We thank Bob Chapek for his service to Disney over his long career, including navigating the company through the unprecedented challenges of the pandemic. The Board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the Company through this pivotal period”.
As per Disney, Susan Arnold will continue serving as the chairperson and there has been no change to the board. Iger led Disney as CEO for 15 years, from 2005 to 2020, before choosing to step aside and transfer control to Bob Chapek.
Notably, Chapek and Disney agreed to a three-year contract extension in June. Iger declared upon his return that he was excited to rejoin Disney and that he was hopeful about the company’s future.
Bob Iger noted, “Disney and its incomparable brands and franchises hold a special place in the hearts of so many people around the globe — most especially in the hearts of our employees, whose dedication to this company and its mission is an inspiration.
I am deeply honored to be asked to again lead this remarkable team, with a clear mission focused on creative excellence to inspire generations through unrivaled, bold storytelling.”
Iger managed Disney’s significant deals with Marvel, Pixar, and 21st Century Fox during his previous stint. The returning CEO also informed the Disney workers, including the cast members, via email that they would learn more about this decision “tomorrow and in coming weeks” from the leadership.
The corporation had not benefited greatly from Chapek’s 11-month tenure as the CEO. The share price of the company decreased by over 40% during his tenure. He was also criticized for not actively opposing Florida’s anti-gay law. Under his leadership, the corporation terminated senior content executive Peter Rice and missed the chance to secure digital streaming rights for the Indian Premier League.
The news was well received by investors, who drove Disney stock up 9% on Monday after it had lost about 36% of its worth this year.
The announcement comes at a pivotal time for Disney. A little more than two weeks have passed since Disney released its Q4 2022 financial results, stating that both its media and park sectors fell short of analyst expectations. Its streaming sector has expanded as more subscribers choose a package option that combines Disney Plus, ESPN Plus, and Hulu, but streaming fees are also rising.
In Q3 2022, the business reported revenues of $20.2 billion, falling short by over $1 billion of analyst estimates. Disney’s CFO at the time, Christine McCarthy, stated that the goal for the company is to become profitable by the 2024 fiscal year.
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