Bob Iger named Disney CEO in shocking development

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In a move that shocked Hollywood, Bob Iger, one of the most notable CEOs in the history of the Walt Disney company, is returning to once again run the media empire.

Bob Chapek, who replaced Iger in 2020 as CEO, is stepping down immediately.

“We thank Bob Chapek for his service to Disney over his long career, including navigating the company through the unprecedented challenges of the pandemic,” Susan Arnold, Chairman of the Board for Disney, said in a statement on Sunday night. “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.”

The announcement, while surprising to the media industry, comes at a time of great evolution for Disney. The company is coming off a lackluster earnings report that showed growth for its streaming endeavors. However, that came at a great cost. Disney’s streaming business lost $1.5 billion in the fourth quarter. That report sent Disney’s stock tumbling after a year of sluggish to bad performance.

Chapek guided the company through the pandemic, one of its most tumultuous periods in its nearly 100-year history, but ultimately Disney decided that its future was in better hands with Iger.

Away from the pandemic, Chapek had a short but bumpy tenure as the head of Disney. Chapek, who served as chairman of Disney Parks, Experiences and Products before taking over for Iger, found himself dealing with issues regarding pay with Scarlett Johansson, one of the company’s biggest stars, as well as Disney’s battles with Florida, and its own employees, regarding the state’s controversial bill restricting certain LGBTQ topics in the classroom.

Disney’s stock has also taken a hit lately. It’s currently down roughly 40% this year.

As for Iger, he has an almost mythical status as the leader of Disney (DIS). He spent 15 years as CEO and was instrumental in acquiring major brands like Pixar, Marvel and Lucasfilm, the home to Star Wars. Iger also closed the $71 billion deal to buy most of 21st Century Fox and kicked off the streaming revolution at Disney (DIS) with the creation of Disney (DIS)+ in November 2019.

Iger stayed on at Disney as executive chairman directing the company’s creative endeavors. He officially left the company after nearly 50 years at the end of last year.

Disney said Sunday that Iger has agreed to serve as CEO for two years with “a mandate from the Board to set the strategic direction for renewed growth and to work closely with the Board in developing a successor to lead the Company at the completion of his term.”

The move is also surprising since Chapek just renewed his contract. The company’s board of directors unanimously voted to extend Chapek’s contract as CEO for another three years, the company said in June. Chapek’s new contract began in July and was set to run until 2025.

Also, it appeared that Iger was set in retirement with his legacy as one of Disney’s most notable and successful CEOs. Now, he’s back.

“I am extremely optimistic for the future of this great company and thrilled to be asked by the Board to return as its CEO,” Iger said in a statement Sunday. “Disney and its incomparable brands and franchises hold a special place in the hearts of so many people around the globe—most especially in the hearts of our employees, whose dedication to this company and its mission is an inspiration.”

Iger added that he is “deeply honored to be asked to again lead this remarkable team, with a clear mission focused on creative excellence to inspire generations through unrivaled, bold storytelling.”

 

[Big moth tiddies]

Disneys debt profile is huge. How much do they have to pay just to service the debt? Also did Disney have a single hit movie release this year? Capeshit came out, but wasnt that just "slightly profitable territory"?

No Way Home was a big financial hit, but I don't know how the financials work since they're dealing with Soyny in that. Dr. Strange did 950 mil, but with a budget of 200 mil and Disney's insane marketing, it probably just got over the line. Thor did worse with 760 mil, but with a 250 mil budget, and Bix Nood 2: Electric Boogaloo is on track to make a bit more than Dr. Strange.

That's before you get to the garbo like Lightyear that definitely did not break even with a production budget of 200 mil bringing in 226 mil. That's not counting marketing.

The only big hit they had this year is the one tied up with a competing company. Not a trend any of the bean counters like to see, that's for sure.

 

[Product Placement]

They have business units that de facto compete with each other and all that implies. Even at the parks this is true sense they reduced the ability to hop parks.

The ESG investors likely threatened a full on crash if their boy wasnt put back in. With Igers fancies expect him to double down on sports as the way out.

Disneys debt profile is huge. How much do they have to pay just to service the debt? Also did Disney have a single hit movie release this year? Capeshit came out, but wasnt that just "slightly profitable territory"?

Capeshit still makes money so is above the slight profitable territory however their budgets could very much be brought down and end up with a better final product if they were better planned out.
But looking up, only other Disney movie that came to cinemas this year not counting 20th century stuff is Lightyear which was a flop.

But counting 20th century stuff they had
Death on the Nile which came out start of the year and grossed $137 million on a $90 million budget, so lost money in it's cinema run but may have became profitable later.
The Bob's Burger Movie, which cost $38 million but only grossed $34 million, so that was a big flop
Barbarian, cost $4.5 million and made over $45 million, so that was a hit
Amsterdam, cost $80 million but only grossed $30 million so that is a huge bomb

Searchlight
See How They Run, made $22 million but no word on budget
The Banshees of Inisherin, made $17 million but no word on budget again.

So not a good year at all with many flops among a pretty small line up of movies. Disney own line up looks much stronger next year in terms of box office prospects however Seachlight and 20th Century seem even more gutted. One thing for sure, Disney as a whole is failing to create new brands to replace or least easy the milking on pre-existing brands.

 

[Vyse Inglebard]

One thing for sure, Disney as a whole is failing to create new brands to replace or least easy the milking on pre-existing brands.

If you can't come up with good ideas on your own, just buy someone else's!.....wait......

 

[Super-Chevy454]

The guys of ClownfishTV wondered if Disney CFO, Christine McCarthy, had staged a coup to get Bob Chapek fired?

One Youtuber commented then Disney need a Zaslav to clean the house.

 

[kcbbq]

The guys of ClownfishTV wondered if Disney CFO, Christine McCarthy, had staged a coup to get Bob Chapek fired?
https://youtube.com/watch?v=3jgkTcWWTF4
One Youtuber commented then Disney need a Zaslav to clean the house.

The only big fish to get the boot so far is Kareem Daniel, and Iger's put a lot of power in McCarthy hands so they might be on to something.

 

[JosephStalin]

I like this.

 

[whatever I feel like]

Fucking dammit, Well Lucas is still alive and got to see his creation star-treked into oblviion. Fucking sellout

ETA, there was a real support of Lucas from late 70s, and I'd say until ROTS 2005. I remember seeing guys yelling 'Hail Lucas' after the THX promo.

At that point, all he had done was American Graffitti, right? Maybe that was because they liked that he was an independent film maker making films that people liked?

 

[Vyse Inglebard]

At that point, all he had done was American Graffitti, right? Maybe that was because they liked that he was an independent film maker making films that people liked?

And A New Hope.

 

[Tanner Glass]

They have business units that de facto compete with each other and all that implies. Even at the parks this is true sense they reduced the ability to hop parks.

The ESG investors likely threatened a full on crash if their boy wasnt put back in. With Igers fancies expect him to double down on sports as the way out.

Disneys debt profile is huge. How much do they have to pay just to service the debt? Also did Disney have a single hit movie release this year? Capeshit came out, but wasnt that just "slightly profitable territory"?

Depends on your perspective, honestly.

Capeshit likely made a few hundred million this year - which would be massive if it were a normal company (and not disney). However you have to then factor in fact that the movies themselves are drastically losing stream and Disney is paying huge money to flood Disney+ with capeshit shows that are losing money hand over fist - and they've committed to like ~10 more shows over the next year, it's going to be a loss unless a ton more people start paying for Disney+ (they will not do this).

Star Wars is in the same place as well - the movies did OK (financially) but the shows are expensive and do not generate a profit. They absolutely lost money here (in that they had to pay 4 billion dollars for the franchise) and don't have a solid plan to right the ship.

So with some creative bookkeeping - Marvel/Star Wars did OK. Realistically, they did really bad because of how expensive the TV shows are and how much Disney just gives away Disney+ in the hopes that in the future people might subscribe to it for real. Both Marvel and Star Wars don't have a great "future" roadmap besides throwing a bunch of shit at the wall and hoping something sticks (it won't).

 

[kcbbq]

Depends on your perspective, honestly.

Capeshit likely made a few hundred million this year - which would be massive if it were a normal company (and not disney). However you have to then factor in fact that the movies themselves are drastically losing stream and Disney is paying huge money to flood Disney+ with capeshit shows that are losing money hand over fist - and they've committed to like ~10 more shows over the next year, it's going to be a loss unless a ton more people start paying for Disney+ (they will not do this).

Star Wars is in the same place as well - the movies did OK (financially) but the shows are expensive and do not generate a profit. They absolutely lost money here (in that they had to pay 4 billion dollars for the franchise) and don't have a solid plan to right the ship.

So with some creative bookkeeping - Marvel/Star Wars did OK. Realistically, they did really bad because of how expensive the TV shows are and how much Disney just gives away Disney+ in the hopes that in the future people might subscribe to it for real. Both Marvel and Star Wars don't have a great "future" roadmap besides throwing a bunch of shit at the wall and hoping something sticks (it won't).

Star Wars has paid for itself already, and because of the same reasons Lucas made billions from it. Licensing. Every $800 Star Wars Lego set sells out almost immediately. Licensed lightsaber toys alone generate enough money to buy the moon. All the licensed toys, Bandai model kits, Hasbro and whomever else helmets, everything, is just a river of cash.

The Mouse profited enough off the purchase to have paid for it in something like 6 years.

It's not like they didn't have a positive history in buying Lucas's cast off toys. Pixar was a moneymaker for them, too.

 

[Watcher]

There are rumors circulating rn that Disney brought Bob Iger back in so they can sell the company to Apple.

Why Bob Iger’s Ultimate Power Move May Be Selling Disney to Apple

"This is the pinnacle deal for the ultimate dealmaker," one studio insider says

ca.sports.yahoo.com

“He’s going to sell the company,” one Disney insider who has worked for Iger predicted. “This is the pinnacle deal for the ultimate dealmaker.”

Landing a deal with Apple (or some other megabuyer) would also cement Iger’s legacy. “I think he’d welcome it — he’d be the last CEO of Disney,” a former top Disney executive told TheWrap, noting that the two companies have “similar brand identities” and could benefit from a merger.

Acquisitions are in Iger’s DNA. Under Iger’s leadership, Disney went on a nearly $100 billion shopping spree to buy animation giant Pixar in 2006, superhero juggernaut Marvel in 2009, “Star Wars”-powered Lucasfilm in 2012 and Rupert Murdoch’s 21st Century Fox in 2019. But there was one acquisition he’s publicly lamented as a transformational deal that got away — a combination with the tech powerhouse Apple.

I do think this would be extremely controversial and Apple would likely not go through with it. Apple switching businesses from just making computers and phones to making media and running theme parks would probably get them under attack from regulation companies.

 

[Mothra1988]

Most streamers lose money in the few years of their existence with the start up costsand building a subscription base up. If Disney budgeted Disney+ content to be profitable at this point, they would have far less content and would dramatic slow down growth and the potential future profit they could get.

Disney+ it's self was never expect to make a profit til 2024, however the issue the losses are getting bigger not smaller. Nor is Disney+ still showing the strong growth it saw in 2021, it's still growing but not nearly as fast.

Disney+ keeps growing fast. But streaming loses $1.5 billion

The loss underscores the challenges that legacy media companies face as they spend money on new content to compete with Netflix for subscription dollars.

www.latimes.com

But onto your first point, Disney has had a lot of box office bombs, pretty much anything from 20th century studios flops now due to Disney mismanagement and they had huge money loser with Lightyear this year, with Strange World looking to be their next flop.

The loss for Lighyear has to be much more gigantic than reported. I keep seeing discounted merch for it everywhere and none of it ever sells. It's even worse than New Wars or if people remember all the mech from the crappy Matthew Broderick Godzilla movie from the end of the 90's. They'll have to bury it all in the dessert at some point like the ET Atari game.

 

[Watcher]

Disney's financial situation always reminds me of how people demanded that the govt intervene and break up Disney after they bought 20th Century Fox.

Historically when these massive juggernaut corporations get really big and get lots of media attention, if you just wait they fall on massive financial hard times inevitably. And Disney's no exception.

 

[Tanner Glass]

Star Wars has paid for itself already, and because of the same reasons Lucas made billions from it. Licensing. Every $800 Star Wars Lego set sells out almost immediately. Licensed lightsaber toys alone generate enough money to buy the moon. All the licensed toys, Bandai model kits, Hasbro and whomever else helmets, everything, is just a river of cash.

The Mouse profited enough off the purchase to have paid for it in something like 6 years.

It's not like they didn't have a positive history in buying Lucas's cast off toys. Pixar was a moneymaker for them, too.

Sure - if Disney wasn't retarded that would make sense.

However they also spent literally god-knows-how-much money on a $6,000 per night Star Wars hotel on top of a gigantic investment into their theme parks on Star Wars. Not to mention the toys and such are less popular as the movies and franchise itself is less popular. The rumor is also that Lucas still gets merch money on "his" characters (hence why they're relegated to minor roles in the New Trilogy).

There are rumors circulating rn that Disney brought Bob Iger back in so they can sell the company to Apple.

Why Bob Iger’s Ultimate Power Move May Be Selling Disney to Apple

"This is the pinnacle deal for the ultimate dealmaker," one studio insider says

ca.sports.yahoo.com

I do think this would be extremely controversial and Apple would likely not go through with it. Apple switching businesses from just making computers and phones to making media and running theme parks would probably get them under attack from regulation companies.

I don't see any company that could buy Disney (holy fuck how much would that cost) wanting to actually do it during a gigantic recession. How many companies could really even afford to do such a thing - like 10?

The companies are more likely to just watch Disney fail and try and buy whatever pieces they want instead of buying the entire company.

 

[Watcher]

I don't see any company that could buy Disney (holy fuck how much would that cost) wanting to actually do it during a gigantic recession. How many companies could really even afford to do such a thing - like 10?

I could see some companies doing it IE: Tencent but they'd likely massively downscale the business. (Remove parks, split off studios like Pixar and focus more on licensing) that sort of thing.

The companies are more likely to just watch Disney fail and try and buy whatever pieces they want instead of buying the entire company.

I don't see Disney ever outright failing to the point where they'd be stripmined by other companies but I could see them downsizing most of their business to try and stay afloat.

 

[namelesstacotruck]

The loss for Lighyear has to be much more gigantic than reported. I keep seeing discounted merch for it everywhere and none of it ever sells. It's even worse than New Wars or if people remember all the mech from the crappy Matthew Broderick Godzilla movie from the end of the 90's. They'll have to bury it all in the dessert at some point like the ET Atari game.

Also toy companies are having a rough time lately. And Lightyear isnt the first or last time Disney has dumped an ip with toys that wont sell on the market.

 

[George Floyd Sneed]

Disney's financial situation always reminds me of how people demanded that the govt intervene and break up Disney after they bought 20th Century Fox.

Historically when these massive juggernaut corporations get really big and get lots of media attention, if you just wait they fall on massive financial hard times inevitably. And Disney's no exception.

Any econ 101 class gets into why monopolies aren’t very profitable in the long run. The only reason why they still get pursued is that major shareholders demand growth for growth’s sake and when you’re Disney, the concept of infinite growth is not feasible without some major acquisitions. This is where organizations like the FTC step in but they are committed neoliberals who also believe in growth for growth’s sake. As we see with the tech industry, that isn’t actually sustainable. Jewsney is going to continue to sputter with Iger at the helm because of market realities.

 

[Vyse Inglebard]

Also toy companies are having a rough time lately.

>have an agenda to fag/troon/drug our kids, making them more lethargic/unlikely to play with toys
>the toy industry suffers as a result

 

[Drag-on Knight 91873]

>have an agenda to fag/troon/drug our kids, making them more lethargic/unlikely to play with toys
>the toy industry suffers as a result
View attachment 3918141

At this point, it's better to make kids play with hoop and stick. How does it stay up? Only pre-Boomers know the answer to that.

 

[XYZpdq Jr.]

the real estate holdings of Disney alone make it extremely unlikely anybody would outright buy the whole thing as-is

I would expect a few piecemeal sales here and there for a while before a big sell-off
like dumping the resorts outside of the theme parks like the one out on the east coast, the cruise line, there's a lot of hard assets that most rational actors really wouldn't even want in a Disney purchase