Wall Street has already embraced the news that Bob Iger has returned as Disney’s CEO, replacing Bob Chapek’s short and tumultuous reign: Shares in the entertainment giant climbed 10% in premarket trading on Monday, to $101.02.
Chapek, the former Disney parks chief who himself replaced Iger as CEO less than two years ago, has struggled during his brief tenure amid COVID pressures, economic issues and self-inflicted management wounds — and Disney’s shaky revenue picture has driven its stock price down 41% since the start of the year.
The streaming company reported a loss of $1.47 billion in its most recent quarter. This is twice the amount it suffered a year ago. Chapek also admitted that the streaming operation will not meet its September 2024 profitability goal if there is a recession or any other economic downturn.
Iger is a popularly liked CEO and will return to the company for two more years. He previously managed the company for 15 years from 2005 to 2020. He oversaw the acquisitions by Pixar and Marvel Studios, Lucasfilm, 21st Century Fox, and Lucasfilm.
He had also doubled the company’s revenues from $32 billion to $70 billion through his tenure.
Chapek was appointed CEO in February 2020. He had previously served as Chairman of Parks and Resorts and president of Consumer Products. Many missteps occurred during his two years, including a poor-managed lawsuit by Scarlett Johansson regarding her salary related to streaming of “Black Widow.” Chapek also initially chose to stay mum about Florida’s “Don’t Say Gay”Many employees resent the bill.
Chapek made the announcement that Disney will soon be cutting its workforce and placing a halt to hiring in 2023. Chapek, who made $32 million in 2021 and had his contract renewed in July for three more years. He was guaranteed a minimum of $22.5 million.