The Walt Disney Co. Board of Directors replaces in an extraordinary meeting on Sunday evening, November 20 to CEO Bob Chapek, for Robert Iger, its former president and CEO, who had left the company late last year.
“The board has decided that as Disney embarks on an increasingly complex stage of transformations in our industry, Bob Iger is the one who is in a privileged position to run the company,” the entertainment giant said in a statement signed by board chair Susan Arnold.
And I add: “We thank Bob Chapek for his services at Disney in these difficult months, especially due to the unprecedented challenges it faced during the pandemic.”
The changes are surprising and come at a time when these are tumultuous for Disney.
In early November, Disney reported a much weaker-than-expected financial result (for its fiscal fourth quarter), thus ending the momentum of previous periods, with record high revenues and profits across most of its divisions. .
Disney in particular was doing very well at its theme parks. That business had recovered from the pandemic.
However, this business segment of Disney is subsidizing the increasingly high losses of the streaming business, which since its creation, spends much more than it takes in.
Chapek had said that he hoped the business of the streaming It was profitable in the third quarter of 2024, however, as things are going, it doesn’t look like it’s going to be able to pull it off. In the last quarter, Disney’s streaming business segment lost $1.4 billion, more than double what it had lost in the same quarter of 2021.
On the other hand, Chapek had warned that his prognosis was going to come true if there was no remission. The problem is that all the indicators say otherwise.
Disney brings back the CEO it fired two years ago
The price of Disney shares rose 9 percent in the premarket on Monday, November 21.
Analysts believe it’s because the former CEO, now back at Disney, will be able to steer the company’s course.
As published by Wall Street JournalMost of Disney’s top executives first learned that Iger would be returning to Disney in an email on Sunday. Many were at the Elton John concert at Dodger Stadium in Los Angeles that was broadcast live on Disney+.
At that show, Chapek was expected to not only attend the event, but was scheduled to introduce Elton John on stage.
It was such a surprise that some Disney employees said they were “baffled” by the content of the email and that their first thought was that the company’s email account had been hacked.
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