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Why Disney Replaced Bob Chapek With Bob Iger


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Bob Iger has taken over as CEO of The Walt Disney Company (again) after it was announced that Bob Chapek would no longer fill the role.

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©CNBC

The news was about as stunning as Iger’s initial announcement that he would be stepping down in early 2020, just weeks before the COVID-19 pandemic would force Disney to halt theme park operations. The company’s Board of Directors had voted earlier in 2022 to extend Chapek’s by three years — after the then-CEO had already faced criticism for price increases in the parks, Annual Pass program changes, and even his political decisions regarding Disney’s response to Florida’s Parental Rights in Education (or “Don’t Say Gay” per critics) law. So, why was the decision to replace Chapek with Iger made now, and why so (seemingly) sudden?

The recent announcement that Bob Iger would be replacing Bob Chapek as Chief Executive Officer of The Walt Disney Company seemingly came out of nowhere — and now we know why. According to CNBC’s David Faber, Disney’s Board of Directors reached out to Iger on Friday about the position.

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©Reuters

Faber went on to say that the Board didn’t really have any other serious candidates in mind to replace Chapek, and that he was notified of the decision on Sunday night — the same night Disney announced the change.

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©Disney

Concerns were growing not only from fans, but from the Board and investors after Disney’s most recent quarterly earnings report. The company reported a 9% increase in revenues for the quarter and 23% for the year, while Disney Parks, Experiences and Products saw a 26% increase. Disney+ continues to add subscribers, though it is not expected to be profitable until 2024.

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Disney CEO Bob Chapek in Disney World on its 50th Anniversary

Despite this, though, Disney reported $1.5 billion in quarterly losses and revenues missed expectations according to the New York Times. Later, Chapek announced via an internal memo that Disney would cut costs with layoffs and hiring freezes. This news did not sit well with the Board and shareholders per Faber, so the decision was made to replace Chapek.

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©Alberto E. Rodriguez / Getty Images

Other internal candidates were named as potential options for the job, though the Board ultimately decided not to put someone new in charge “given all various pressures on the company.”

After the Iger announcement was made, Disney stock rose by about 9% at the market open on Monday morning.

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©Yahoo Finance

What Iger’s first move as newly-returned CEO will be remains to be seen, but we’ll continue to update you on this developing story.

For more on Bob Chapek and Bob Iger, check out our posts below:

Stay tuned to DFB for more Disney news.

A Timeline of Bob Chapek’s Financial Decisions with The Walt Disney Company

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What do you think of this recent change? Let us know in the comments!

The post Why Disney Replaced Bob Chapek With Bob Iger first appeared on the disney food blog.

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