Disney brings back former CEO Bob Iger two years later

By Al Mayadeen English
Source: Agencies
21 Nov 2022 09:02
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Iger's leadership contributed to Disney's production of a number of record-setting films including Marvel's "Avengers: Endgame," the highest-grossing film of all time.

Bob Iger (Variety)

Disney announced on Sunday that chief executive Bob Chapek, after two years as Disney CEO, was out - bringing back former CEO Bob Iger to take the lead.

In its statement, Disney relayed that the change would take effect immediately, adding: "We thank Bob Chapek for his service to Disney over his long career," per Susan Arnold, chair of Disney's board.

The board of directors decided that as the company "embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead."

Disney, whose stock has fallen 41% this year, hosted Iger as its CEO for 15 years, increasing the media conglomerate's market capitalization five-fold during that time. In 2020, Iger promoted Chapek as his replacement but their relationship went downhill this year.

"I am deeply honored to be asked to again lead this remarkable team... through unrivaled, bold storytelling," Iger said. During his time, Disney acquired Pixar, Marvel, Lucasfilm and 21st Century Fox, opened its first theme park in China, the Shanghai Disney Resort, and launched the Disney+ and ESPN+ streaming services.

In addition, Iger's leadership contributed to Disney's production of a number of record-setting films including Marvel's Avengers: Endgame, the highest-grossing film of all time, as well as Frozen, Frozen 2, and Marvel's Black Panther.

Repair Disney's "balance sheet from hell"!

Disney's total revenue of $28.7 billion for the fiscal year was recorded during Chapek's time which ended October 1, 2022. He reported earlier this month that 12.1 million were new subscribers to Disney+, increasing its global total to 164.2 million. Disney's Hulu and ESPN+ also saw a one million increase and 1.5 million, respectively.

However, in light of the pandemic's lingering effects, Chapek announced last week company-wide cost-cutting measures, hinting at possible layoffs. Increasing operating losses were reported for streaming services as well, which almost doubled to $1.47 billion last quarter.

As a result of that, the host of CNBC's Mad Money show, Jim Cramer, urged Disney to kick Chapek to the curb and repair Disney's "balance sheet from hell."