That’s why the Mickey Mouse house recalls the former CEO Iger to lead Disney
Veteran Bob Iger returns to Disney after Chapek is ousted as CEO. Mickey's company thus replaces the CEO after a mandate of just two years in which Chapek struggled to win over investors
After just two years, Mickey Mouse sends CEO Bob Chapek home and calls back former number one Robert Iger.
Iger, who left the post of Disney chief executive officer to Bob Chapek in 2020 after 15 years in that position, is resuming the post effective immediately. This was announced by the American entertainment giant.
So Iger agreed to return to lead the Mickey Mouse company, founded in 1923, for two years with the aim of establishing a strategy for "renewed growth," Disney specified. He will also aim to work with the board of directors to find a successor.
For its part, Disney thanked Chapek, who resigned from his position, for his work, but said that "Bob Iger is in a unique position to lead the company in this crucial period".
Iger's return may satisfy anxious investors, but Disney will ultimately need to find another CEO to run the company, Axios comments. Disney shares are down more than 40% so far this year. The company notably disappointed investors this month with an earnings report that showed mounting losses at its media streaming unit that includes Disney+.
All the details.
THE WALT DISNEY COMPANY RECALLS FORMER CEO BOB IGER
In an increasingly uncertain economic future, the House of Mickey Mouse wants to reassure (and be reassured) from a leader who knows the company well and has guided it towards growth for more than a decade.
Bob Iger, 71, returns to Walt Disney Co. as CEO less than a year after retiring. Iger has spent more than four decades at the company, including 15 as CEO. She served as chair of the board until her departure in December 2021, being replaced by Susan Arnold.
“I'm an optimist, and if I've learned one thing from my years at Disney, it's that even in the face of uncertainty, perhaps especially in the face of uncertainty, our employees and cast members achieve the impossible,” Iger said. in a note to employees seen by Reuters .
Iger took his leave of Disney on a positive note as the company waged battle against rival Netflix in the streaming war. During his tenure, Disney made several key acquisitions, including Pixar Animation Studios, Marvel Entertainment and 21st Century Fox, and quintupled its market capitalization, Reuters also recalls.
BOB CHAPEK TORPEKED
In fact, the company did not specify the reasons for Chapek's departure, indicating only that he has left his post. “We thank Bob Chapek for his service to Disney throughout his long career, including guiding the company through the unprecedented challenges of the pandemic,” chairwoman Susan Arnold said in a press release . “The board felt that as Disney enters an increasingly complex period of industry transformation, Bob Iger is in an especially good position to lead the company at this pivotal time,” he added.
THE LAST TWO YEARS OF THE TOPOLINO COMPANY
Chapek was named CEO of the company in February 2020, succeeding Iger . It recently announced a series of cost-cutting measures, including a hiring freeze and layoffs, after Disney reported larger losses during its fiscal fourth quarter due to growth in its streaming business. The company is looking for new sources of growth after the slowdown seen across the company during the coronavirus pandemic.
ATTENTION TO BUSINESS STREAMING IN DISNEY AGAIN AT THE GUIDE OF IGER
Shares of Disney posted the biggest drop in 21 years earlier this month after the company missed Wall Street's revenue and profit expectations for the year's final fiscal quarter.
Notably, the streaming business lost nearly $1.5 billion in the quarter, more than double the prior year's loss, overshadowing subscriber earnings. As a result, Disney's media and entertainment group operating profit plunged 91% to $83 million.
Overall, the Disney Plus streaming service , which competes with Netflix among others, is thriving, adding 12.1 million Disney+ subscribers in the fourth quarter and 14.6 million subscribers across all streaming services (including Hulu and ESPN+). But the division has yet to turn a profit since its 2019 launch. Disney said it expects Disney+ to be profitable in fiscal 2024. Disney has spent billions — its content budget this year alone has been $30 billion — as it competes with Netflix and other streamers for subscribers, the Ft points out.
Disney says its streaming operations will be profitable by 2024 with a significant share of revenue coming from advertisers. The ad-supported streaming option, which launched on Dec. 8, has already signed up more than 100 advertisers, former CEO Chapek said on the earnings call.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/ecco-perche-la-casa-di-topolino-richiama-lex-ceo-iger-alla-guida-di-disney/ on Mon, 21 Nov 2022 11:30:14 +0000.