11/23/2022: Bob Iger is Back
Disney Board Replaced Bob Chapek with Bob Iger
The board of Disney replaced CEO Bob Chapek with Bob Iger, the former beloved CEO of Disney. Disney Board Chair Susan Arnold said the following in a statement.
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
Earlier this month, Disney reported earnings that missed expectations . Disney’s theme parks are doing well but they are losing a lot of money on streaming. It is reported that some members in the executive team are not satisfied with former CEO Bob Chapek’s management style and his many missteps. They took the issue to the board. The board decided to fire him and asked Bob Iger to come back. He agreed and it seems that people are thrilled with this change. DIS 0.00 rallied 6% on Monday after the announcement.
Like many other companies, Disney is facing lots of headwinds right now. The economy is cooling down fast and that will eventually impact their theme park and merchandise business. Their streaming service is facing fierce competition and is a big money drain. Many activist investors are circling around and demanding the company to cut costs and to improve profitability. The Disney CEO job is going to be super tough in the next couple of years and the Disney board is not sure if Bob Chapek can handle it. Interestingly, Starbucks founder Howard Schultz also returned as interim CEO earlier this year . The world is going to see more tough times ahead and companies want proven leaders to lead them through the very dark period ahead. If this trend continues, I won’t be surprised to see Jeff Bezos return to Amazon as CEO.