- Bob Iger returned to Disney as CEO in November, ending Bob Chapek’s difficult tenure.
- The change comes as Disney faces mounting financial challenges and likely layoffs in 2023.
- Here’s everything you need to know about what led to Chapek’s ooster and what’s to come.
In one of the most dramatic turnarounds in company history, the Walt Disney Co. board of directors reinstated Bob Iger as CEO in November, ousting his predecessor Bob Chapek.
The return of Iger, who had previously served as CEO for 15 years before Chapek took over, sparked a flood of notes from Wall Street investors focusing on the challenges Iger faced – analysts and Hollywood industry observers have also scrutinized Chapek’s difficult tenure and selection as CEO. . .
Here’s a look at what led to the change at the helm of one of America’s most beloved companies and the challenges that await Iger in what has been billed as a two-year term, from find a new successor to fix Disney’s streaming business and mend the company’s relationship with Hollywood.
What went wrong under Chapek and how Iger’s comeback happened
Iger’s return cut short the tenure of his protege Bob Chapek, who had spent less than three years in the role. Insider reported that Disney executives complained to the company’s board about Chapek’s leadership.
Chapek’s the escapes were far-reaching. Disney had just reported a $1.5 billion loss in its streaming business in a Nov. 8 earnings call. Earlier in the year, the company faced Customer reaction to price increases in its theme parks. Separately, the employees came out to protest Disney’s reluctance to take a tough stance against Florida’s “Don’t Say Gay” law.
Chapek had also alienated creative and Hollywood executives by stripping content budgets from creative executives at Disney and streaming movies alongside in theaters during the pandemic; the move resulted in a high profile legal row with Scarlett Johansson and her representatives.
The company has also faced pressure from activist investors like Daniel Loeb to cut costs and make big strategic changes.
It didn’t help that Chapek, while considered an efficient operator, was also seen as less charismatic and communicative than his popular predecessor. Wall Street criticized him for having waited after the third quarter results call to announce that layoffs were planned, for example.
Read more about Chapek’s tenure and Iger’s shocking comeback:
Why Iger’s top priority will be a solid succession plan
Iger’s return reassured employees who knew the Disney vet, but also drew criticism, given that his previous tenure as CEO included finding and grooming his replacement. He is therefore under pressure to complete this task before the end of his two-year contract (although the board could always extend his contract again, given that he has already done so). four times before).
During Chapek’s first year as CEO, Iger remained the company’s executive chairman, and there was tension between the two executives. the The Wall Street Journal reported this Iger undermined Chapek’s leadership.
While many in Hollywood applauded Iger’s reinstatement, the move also quickly sparked criticism from some on Wall Street over Disney’s succession planning and questions about whether the company even had executives. who could be trained to succeed him in two years.
Learn more about success at Disney:
How Iger Can Strengthen Disney’s Streaming Business and Control Costs
Iger returns to a more competitive streaming landscape since his departure, with new entrants like Netflix’s ad-supported tier battling for viewer wallet share. Disney, which launched its own ad-supported Disney+ offering in December, has seen strong growth in streaming, but Wall Street is now more concerned with profitability.
Iger has already scored wins for Disney with acquisitions from Lucasfilm, Pixar and other companies, but told Disney staff At a November meeting do not expect more big acquisitions. He also said a hiring freeze announced by Chapek would remain in effect.
Stepping up to lead the company in a difficult economic environment, Iger will not only have to deal with steep losses in Disney’s streaming business, but also big decisions such as seeking full ownership of now-owned Hulu. in part by Comcast; how to manage content distribution on Hulu and Disney+; and whether to keep or sell ESPN.
Learn more about Disney’s streaming business and M&A plans:
How a sluggish box office and talent demands will create new challenges for Iger
Iger wasted no time in making changes, ousting Kareem Daniel – the exec who was leading the cast in Chapek’s unpopular business restructuring – and announcing plans to empower Disney’s creative executives.
But he also has to deal with a box office business that has been plagued by the pandemic and appease Hollywood talent still vexed by some of Chapek’s moves. Recent animation releases have failed and there has been a slowdown in Star Wars releases.
Long considered one of Hollywood’s most successful CEOs, Iger will need to harness all of his business acumen, cultural acumen and management skills to guide Disney through a tough economic landscape and make the company a strong new leader.
Learn more about what Disney, Hollywood and Iger expect from Iger:
0 Comments