Ex-Disney CEO Bob Iger is returning to the company less than a year after retiring.
As the stock price has plunged and Disney+ continues to incur losses, he has been rehired by the media behemoth to guide it through these difficult times.
He succeeds Bob Chapek, who assumed the role of CEO in February 2020.
Mr. Iger, who led the entertainment behemoth for 15 years, told the New York Times in January that it was “crazy” to believe he could return.
He stated, “I was CEO for a long time.” “You cannot return home. I’m gone, “He revealed to the press.
Mr. Iger, who was chairman until 2021, has agreed to remain in the position for two years, during which he intends to recruit a new CEO.
Mr. Iger stated, “I am incredibly enthusiastic about the future of this wonderful company and happy that the Board has invited me to remain as its CEO.”
In addition to supervising the introduction of Disney’s streaming service, Disney+, Mr. Iger led big purchases involving Pixar, Marvel, Rupert Murdoch’s 21st Century Fox, and Lucasfilm, the home of the Star Wars franchise.
These efforts, together with the creation of amusement parks, contributed to a fivefold growth in the company’s market value during his tenure as CEO.
Board chair Susan Arnold stated in a statement that Mr. Iger was “uniquely positioned” to lead Disney through “an increasingly complicated period of industry transformation.”
However, Disney stock has declined by more than 40 percent this year, and the firm has invested billions in Disney+.
Mr. Iger has replaced Mr. Chapek effective immediately.
During Mr. Chapek’s term as Disney’s CEO, the theme parks were closed owing to Covid restrictions.
Ms. Arnold said in a statement, “We thank Bob Chapek for his many years of service to Disney, including guiding the company through the exceptional challenges of the epidemic.”
It occurred just a few weeks after the firm reported that Disney+ lost about $1.5 billion (£1.3 billion) in the three months leading up to the end of September.
Disney currently has over 235 million subscriptions across its three streaming channels, which include ESPN+ and Hulu, which focuses on sports. It has surpassed Netflix, which has over 223 million customers.
Mr. Chapek was also under heat for his response to the infamous “Don’t Say Gay” bill in Florida.
In March, he issued an apology for his “painful silence” on the sex education bill, which critics claimed would isolate LGBT youngsters, and for which he was criticized by staff. Not long after Mr. Chapek’s remarks, Florida legislators passed a bill to deprive Disney of its special tax status in the state, which effectively gave the business authority over the area in Orlando where its amusement parks are located.
In addition, he engaged in a public dispute with actress Scarlett Johansson over the premiere of the Black Widow picture and Disney’s decision to broadcast the Marvel superhero feature on its streaming service while it was still in theatres. The dispute was finally resolved, but the terms of the settlement were not published.
Walter Todd, president, and chief investment officer of Greenwood Capital, stated that the news of Mr. Iger’s return was “very shocking,” but that investors would likely welcome it.
Monday’s closing price for Disney stock increased by more than 6 percent after the announcement was made.
“Bob Iger is identified with Disney – he supervised some of the company’s most successful acquisitions with Pixar, Marvel, and Lucasfilm, so I believe there’s a fair degree of faith in Bob’s vision for the industry,” said Mr. Todd.
Mr. Todd stated that Mr. Iger’s track record at Disney was the reason for his industry respect, but he added, “That will only get you so far, so I’m eager to hear his vision for the company going ahead.”
Ricky Brigante, a Disney investor and founder of the Inside the Magic fan network, compared Mr. Iger’s return to Apple in 1997 to that of the late Steve Jobs.
He stated that despite the company’s recent “rocky patches,” Mr. Iger “has the potential to transform the public’s opinion overnight.”
Even the co-CEO of Disney’s competitor Netflix tweeted about the move. Reed Hastings remarked, “Ugh. I had hoped Iger would seek the presidency. He is incredible.”
Mr. Iger was also one of the last honorary knights approved in September by the late Queen Elizabeth II for his contribution to UK-US ties.
