Bob Iger has spoken out about why he decided to step down as the CEO of Disney a year before his contract was scheduled to end
Shares of Walt Disney Co. closed down 3.77 per cent a day after Bob Iger was suddenly replaced as head of the entertainment company.
Disney stock dropped 123.36 points on Wednesday as Iger also spoke out about why he decided to step down as the CEO of Disney a year before his contract was scheduled to end.
‘I don’t want to run the company any more,’ Iger told CNBC host David Faber in a phone call on Wednesday morning, following his surprise resignation the evening before.
Iger will assume the role of executive chairman and focus his energy on delivering creative input on Disney’s films and series, while former theme parks boss Robert Chapek will take over day-to-day management of the company.
While Wall Street analysts were largely positive about the change, some were skeptical.
‘Bob Chapek has less (content experience), having spent his Disney career in distribution of content and/or the physical world of parks, retail, and consumer products (ie, minimal storytelling, despite the fact that even he says that storytelling is at the center of Disney’s value proposition),’ Needham analyst Laura Martin said.
Shares of Walt Disney Co. closed down 3.77 per cent on Wednesday, a day after the entertainment company announced it was replacing Iger, and after he opened up about his reasons for leaving the top post
Iger and Chapek sat down for an interview following the surprise announcement on Tuesday
Two former employees Reuters talked to expressed surprise that Kevin Mayer, chairman of Direct-to-Consumer and International, was not named to the top job, especially after the roll-out of the Disney+ streaming service, which attracted 10 million sign-ups in its first day.
Most analysts, however, agreed that the move ended years of speculation on who would take over Hollywood’s most powerful studio, built up by Iger through acquisitions of Pixar, Marvel, Lucasfilm and 21st Century Fox.
‘The move takes CEO succession uncertainty off the table; we expect the markets to digest this news and ultimately give Chapek the benefit of the doubt as the new CEO,’ Cowen and Company analysts wrote in a note.
To be sure, Iger is still keeping a significant role at the company. He will assume the post of executive chairman and direct the company’s ‘creative endeavors’.
Regarding his switch to executive chairman, a post Iger will hold at least through the end of his contract in December 2021, Iger said ‘there is no rule book’ for how these transitions go.
Iger told CNBC’s Faber that his desire to step down strengthened around Thanksgiving of 2019, and that he raised the issue with the board around that time.
His departure came as a surprise to those who follow the company. ‘Did not see this coming – Wowza,’ tweeted LightShed media analyst Rich Greenfield.
‘The timing was a surprise. We knew Bob was going to leave, we didn’t know it would happen this quickly,’ entertainment analyst Michael Nathanson of MoffattNatthanson said in an interview on CNBC.
Robert Chapek, previously Disney’s chairman of amusement parks, will take over as CEO
Bob Iger, pictured left with then California Governor Arnold Schwarzenegger, Mickey Mouse, Walt Disney’s daughter Diane Disney Miller (1933-2013), broadcast legend Art Linkletter (died May 2010), former chief executive officer of the Walt Disney Company Michael D. Eisner and Minnie Mouse at the 50th anniversary of Disneyland in Anaheim, California July 17, 2005
‘The fact that Bob Iger believes it’s a full time job to sort out the content assets over the next 2 years implies it’s a bigger mess over at the Fox content assets than we thought,’ Needham’s Martin said.
Chapek will face some immediate challenges including building on the early success of Disney+ and charting a strategy for Hulu to be profitable, Cowen analysts added.
Both Iger and Chapek reportedly addressed Disney staff on Wednesday during an hour-long town hall on the company’s Burbank lot that was simulcast to Disney employees around the globe.
Both executives — or as one person in attendance jokingly called them, ‘Big Bob and Little Bob’ — took to the stage together with the company’s senior leadership in the front row. Their remarks were followed by questions from the audience.
Neither executive provided additional insight into the abrupt timing of the handover, and most attendees used their moment at the mic to thank Iger for his contributions to the company, reports Deadline.
Astonishing moment Prince Harry appears to tout Meghan Markle for a Disney voiceover job to Bob Iger
At the Lion King premiere in London last July, Prince Harry collared the powerful Disney chief and advertised Meghan’s ‘interest’ in doing voiceover work.
During the hushed conversation, caught on camera by a fan, the Prince gestures to Meghan and says: ‘You do know she does voiceovers?’
Iger can be heard replying: ‘Ah, I did not know that.’ Harry then responds: ‘You seem surprised. She’s really interested.’ The Disney chief then says: ‘We’d love to try. That’s a great idea.’
Harry’s remarks at the event seemed to take even Mr Iger’s wife, former TV presenter Willow Bay, by surprise.
Ms Bay appears to ask her husband what he and Harry had been discussing.
Iger gestures towards the Prince and appears to fill his wife in on their exchange, which resulted in his wife pulling a surprised face.
Prince Harry touted his wife’s voiceover skills to Disney boss Bob Iger (far left) in July. Harry’s remarks at the event seemed to take even Mr Iger’s wife, former TV presenter Willow Bay, second left, by surprise