Shocker: Robert Iger Returns as Disney CEO

Chapek Is Out...Iger Is Back

Walt Disney Co.’s board of directors late Sunday night replaced Chief Executive Bob Chapek with Robert Iger, the company’s former chairman and CEO who left the company at the end of last year, according to The Wall Street Journal citing a company announcement.

“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 Susan Arnold, chairman of Disney’s board, in a statement.

“We thank Bob Chapek for his service to Disney over his long career, including navigating the company through the unprecedented challenges of the pandemic,” she added.

This month, the company reported weaker-than-expected fourth quarter financial results, killing the momentum built up over a strong year that saw record revenue and profits in multiple divisions, especially the one that includes theme parks. Disney’s theme park business has recovered strongly since the coronavirus pandemic shut down its venues across the world, but the division continues to subsidize widening losses in the streaming video business.

Chapek has said repeatedly that he expects the streaming business to be profitable by September 2024. In the most recent quarter, though, it lost $1.47 billion, more than twice the year-earlier loss.

The company also cautioned that its profitability target would only be met if there wasn’t a significant economic downturn, the first time it has added such a caveat. Disney shares fell 13% the day after the earnings report and are down more than 41% so far this year.

Disney has also faced pressure from multiple activist hedge-fund investors this year. Trian Fund Management LP earlier this month bought more than $800 million worth of Disney stock in the days following the company’s lackluster fiscal fourth-quarter earnings report, according to people familiar with the matter. The stake—under the 5% disclosure threshold—isn’t as large as Trian would like it to be and will likely grow, subject to market conditions, they said.

CNBC reports, Iger, who held the CEO role for 15 years at Disney, had favored Chapek as his successor. The two ultimately had a falling out, and their conflict cast a shadow over the company’s future. Chapek distanced himself from Iger with a series of decisions, including his new approach to streaming prices for Disney+, Hulu and ESPN+.

Iger is a widely respected and liked figure at Disney. He oversaw its deals to acquire Pixar, Lucasfilm and its “Star Wars” properties, and Marvel – all of which have become multi-billion-dollar intellectual property behemoths.

Chapek, meanwhile, angered employees with his initial silence about the “Don’t Say Gay” law in Florida, where the company’s Walt Disney World resort is located. He then received blowback from Republican politicians, such as Florida Gov. Ron DeSantis, for opposing it. Earlier this month, CNBC reported that Chapek had been in touch with Republican leaders in preparation for the GOP taking over the House.

Iger was appointed Chief Executive Officer of Disney in October 2005 and was elected Chairman in 2012.  In February 2020, he assumed the role of Executive Chairman and directed the company’s creative endeavors until his retirement in December 2021.  From 2000-2005, Iger served as President and Chief Operating Officer. 

He officially joined the Disney senior management team in 1996 as Chairman of the Disney-owned ABC Group, and in 1999, was given the additional responsibility of President, Walt Disney International. In that role, Iger expanded and coordinated Disney’s presence outside of the United States, establishing the blueprint for the company’s international growth today. 

As Chairman of the ABC Group, Iger oversaw the broadcast television network and station group, cable television properties, and radio and publishing businesses, and also guided the complex merger between Capital Cities/ABC, Inc. and the Walt Disney Company. During Iger’s years with ABC, he obtained hands-on experience in every aspect of the television business—including news, sports, and entertainment—as well as in program acquisition, rights negotiations, and business affairs. He began his career at ABC in 1974.