A stunning coup at the struggling Walt Disney on Sunday, with long time CEO Bob Iger back in the CEO role after the board ousted Bob Chapek, who had lasted just 33 months in the job.
Iger had been CEO for 15 years and handed over the baton as CEO in February 2020 to Chapek and served as Executive Chairman until the end of 2021.
Iger will now serve as CEO for a second time for the next two years, Disney said in a statement issued on Sunday night in the US.
“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,” said board chair Susan Arnold the shock statement.
The Murdoch family will be interested observers seeing they own 4.4% of Disney’s issued shares (through the Murdoch Family Trust), worth around $US7 billion, a value that is down more than 405 so far this year.
That was after what was a rougher than expected last quarter for the company which is the biggest media and entertainment company in the world controlling not only the streaming video services, but Disney Studios, hotels, theme parks, cruises, the ABC Tv Network and the ESPN cable and streaming sports operation.
Disney shares are down 40% so far this year and 10% since the results for the September quarter showed a company coming under financial pressures with losses of $US1.5 billion reported for its streaming video services, including the high-profile Disney+. That was even though the service reported 162 million subscribers.
Chapek steered Disney through the COVID-19 pandemic – in fact he helped organise the company’s survival, as it borrowed over $US22 billion to help it ride out the lockdowns.
It was only in June of this year that Disney’s board voted unanimously to extend Chapek’s contract for three years, so his ousting was a big surprise in the company, according to early reports and the US media and entertainment business.
The decision to replace Chapek with his predecessor is pretty rich seeing Iger played a major part in selecting and supporting his successor for the top job.
“We thank Bob Chapek for his service to Disney over his long career, including navigating the company through the unprecedented challenges of the pandemic,” Susan Arnold, chairman of the board, said in the release.
“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.”
“I am extremely optimistic for the future of this great company and thrilled to be asked by the Board to return as its CEO,” Iger said in the press release.
“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 unrivalled, bold storytelling.”
Through Chapek’s short tenure, Disney became engulfed in an internal culture war after being accused of remaining silent on Florida legislation that would limit classroom discussion of sexual orientation and gender identity.
Disney had a highly charged argument with Florida governor Ron DeSantis who is now the Republican frontrunner to be the party’s 2024 presidential candidate.
