Bob Iger Returns to Disney, Wall Street Mostly Cheers

11/23/2022 6:29:00 AM

Iger’s reinstatement as CEO of The Walt Disney Company was cheered by employees, the Hollywood community and Wall Street, but economic headwinds remain.

Iger's reinstatement as CEO of The Walt Disney Company was cheered by employees, the Hollywood community and Wall Street, but economic headwinds remain.

Iger’s reinstatement as CEO of The Walt Disney Company was cheered by employees, the Hollywood community and Wall Street, but economic headwinds remain.

They Are Wearing: Paris Fashion Week Spring 2023 Analysts complained that Chapek, in an effort to broaden the content offerings on Disney+, diluted the potency of the Disney brand.return to replace Bob Chapek.losses in its streaming business.return to the company as CEO.

And in the most recent fiscal quarter, the company’s streaming platforms — Disney+, Hulu (a third of which is still owned by Comcast) and ESPN+ — lost a stunning $1.5 billion.Disney shares, in pre-market trading on Monday, were up 9.A Disney+ subscription price hike, which will take effect Dec.He renewed his contract four times before Chapek was appointed as boss, but then stayed on as executive chairman until the end of last year.8, would do little to stanch the bleeding.29 as of 7 a.The current commercial-free version of Disney+ will jump $3 to $10.

99 each month, while a new ad-supported version will cost subscribers $7.ET.Still, eight of the 11 board members, including her, were around when Iger was previously at the helm.99.Wall Street reacted swiftly, sending Disney’s stock price plummeting 13 percent, the steepest decline since the terrorist attacks of 9/11.28 earlier this month.“We would hope and expect that Mr.Nelson Peltz, according to the Wall Street Journal, is kicking around, and Dan Loeb continues to hold a stake.Iger examines the investment plans at Disney+ and refocuses their investment on areas of franchise strength and away from broader general entertainment content,” MoffettNathanson analyst Michael Nathanson wrote in a note to clients.“Magic is back,” MoffettNathanson analyst Michael Nathanson cheered the return of Iger and upgraded the rating from “market perform” to “outperform,” while raising his stock price target by $20 to $120.

And then there are the more obvious self-inflicted wounds: an imbroglio with Florida Gov.Ron DeSantis over the state’s legislation prohibiting classroom discussion of sexual orientation and gender identity in elementary schools, the so-called “Don’t Say Gay” law; a messy legal spat with Scarlett Johansson over profits from Marvel’s “Black Widow” that smacked of misogyny, and a clumsy effort to juice theme park profits by charging customers for fast access that alienated the Disney faithful.” The expert’s conclusion: “We applaud Disney’s board for the courage to make this change.20 said Bob Iger is returning as chief executive officer, effective immediately.Iger’s first directive since the Disney board announced his sudden return has been to unwind Chapek’s unpopular executive reorganizing.In 2020, Chapek concentrated distribution responsibility for all of the company’s content under a new division, Disney Media and Entertainment Division led by Kareem Daniel.Iger and the job that he did in building Disney into the global powerhouse that it has become.The move conferred enormous power on Daniel, a Chapek protégé, and stripped autonomy from Disney’s movie and television studio executives.Iger, 71, served as chief executive from 2005 until 2020.

Suddenly Daniel (who was first hired as an intern by Chapek) and his team were deciding which and TV shows would air on Disney+ or in theaters, and they had purview of content for ABC and Hulu.Iger’s decision-making and strategic positioning – which ignored the Street’s often incorrect short-term focus – would ultimately separate Disney from the media pack.It was very unpopular inside Disney, multiple sources said.(Disney declined to make executives available for interviews.We believe investors will value the transparency and return Disney some of its long-lost magic with a stronger narrative driving the stock higher again.Shares of Disney rose 8% in morning trade to $98.) “It is my intention to restructure things in a way that honors and respects creativity as the heart and soul of who we are,” Iger wrote in a note to employees on Nov.21.

“As you know, this is a time of enormous change and challenges in our industry, and our work will also focus on creating a more efficient and cost-effective structure.They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.” Daniel will leave the company, while top Disney executives including head of general entertainment Dana Walden, content studios head Alan Bergman; ESPN chief James Pitaro and chief financial officer Christine McCarthy, will help devise the new leadership structure.The move has also spurred whispers that ousted TV chief Peter Rice might return to the company.Rice, like Walden, came to Disney from Fox after Disney’s acquisition of most of 21st Century Fox assets.Rice’s detractors inside Disney contend that he never adjusted to the culture.

But Iger’s honeymoon may be short-lived, for he assumes the top job (for the second time) under very different environmental circumstances.The headwinds are severe: a looming recession that could eat into theme park attendance; declining linear TV ratings and ad revenue; the scourge of cord cutting and a stock market that is now highly skeptical of the streaming business.Disney, like its competitors including Netflix and Paramount, has seen its market valuation evaporate, losing 40 percent of its stock value since January.“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,” Disney chairman Susan Arnold, wrote in a statement announcing Iger’s return to the company.The Iger news spurred a stock bump; Disney rose 10 percent, or $12 billion in value, on Monday after the announcement.

But there is some healthy skepticism that Iger’s return will fix the problems facing Disney.“We do not necessarily believe that a lack of leadership is Disney’s problem,” Cowen analyst Doug Creutz wrote in a note to clients on Nov.21.Iger himself, seemed to concur with that sentiment back in December 2021 when he officially retired from Disney.Speaking to CNBC’s David Faber, Iger noted: “Look, the world is changing dramatically, and it’s important for the CEO of a company to address all of those changes rapidly.

Bob [Chapek] is going to address them probably differently perhaps then I may have.But that’s neither good nor bad.I think change, generally speaking…is good.Change isn’t necessarily bad.” Iger — who ran Disney for 15 years, executing a series of industry-shaping deals including the acquisitions of Pixar, Marvel, Lucasfilm and 21st Century Fox — is clearly aware of the choppy economic waters ahead, whether he gets subsumed by them remains to be seen.

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Disney Stock Jumps as Wall Street Cheers Return of Bob Iger “Magic,” Predicts “Strategic Redirection”MoffettNathanson upgrades its rating on company shares to 'outperform' after 'concern that the former CEO Bob Chapek had become wedded to astreaming strategy that did not make sense given today’s reality.' Disney has huge problems with Pixar and Star Wars movies But with Iger they a great chance With Zaslav and Horn in WB and Iger in Disney seems like we get great fight in next years, but now difference between 2023 and 2024 is clear. WB will crush 2023, Disney will crush 2024 Jumped? It went down. Go woke go broke. Bob Iger is 'Woke' Market Summary Walt Disney Co 91.80 USD +0.35 (0.38%)today Closed: Nov 21, 7:20 AM EST • Disclaimer Pre-market 100.20 +8.40 (9.15%) ManaByte Thank goodness! Welcome back original Bob! Please return Disney to its greatness! No woke please!🙏🏻👍🏻👏🏻👏🏻. Glad to hear the news!

Breakingviews - Breakingviews: Disney offers an Iger solution to an Iger problemBob Iger isn’t really the reset that Walt Disney needs, but for now, he’s the reset the $180 billion media giant is getting. The company on Sunday announced its former chief executive officer – who previously had a 15 year tenure – is coming back to replace Bob Chapek, who took the reins from Iger less than three short years ago. The board is mandating that Iger set the strategic direction of the company and find his successor. This time, though, Iger’s legacy – and the board’s jobs – are on the line.

Bob Iger’s Return Rallies Disney Stock as Wall Street Shows Cautious OptimismInvestors are looking for a new streaming strategy from the returning exec, but Iger will likely still need to keep price increases and some facets of Bob Chapek's plans. Are they ever going to figure out an actual successor to Iger? Or, do they keep elevating dorks who can't do the job?

Bob Iger Announces Restructuring After Taking Disney Reins, Kareem Daniel to ExitBob Iger is wasting no time in reshaping Disney after returning as CEO. In a memo to Disney staffers, Iger announced restructuring at the media giant will begin “in the coming weeks.” A… tl;dr: 'working to unfuck the org' haciendomovidas

Bob Iger returns as Disney CEO in surprise moveBob Iger is returning to lead the Walt Disney Co. effective immediately, the company said in a surprise announcement.

With Shareholder Value Plummeting, Disney Ousts Bob Chapek To Bring Bob Iger BackICYMI Sunday night, there was huge news in the entertainment world. Just months after he ousted a popular top executive, Disney's Bob Chapek got a surprise of his own... Lame headline. Chapek didn't 'oust' anyone. Iger retired. A surprise to no one considering he announced it well over a year in advance.