The question kept coming on Tuesday’s hurried conference call: why now? Bob Iger, who had just announced that he was stepping down as Disney’s chief executive effective immediately, answered with talk of succession, transition and the company’s “strategic pillars.” Pressed, he said it was “actually quite simple.” Disney wanted to manage the company well today and manage the handover well, and giving Bob Chapek day-to-day control let him focus on what he called the creative side.
Chapek, until now chairman of Disney Parks, Experiences and Products, becomes CEO after 27 years at the company. Iger, 69, remains chairman until the end of 2021. Disney’s board lead director, Susan Arnold, said directors elected Chapek unanimously after years of weighing internal and external candidates.
A shock with a long fuse
The exit surprised the industry, yet Iger had said last year that he would leave when his contract expired at the end of 2021. CNET noted that he had pushed back his retirement several times, and that the search for an heir had its own drama, including the sudden resignation of one apparent successor in 2016. In a statement Iger said the successful launch of Disney’s direct-to-consumer businesses and the Fox integration being well underway made this “the optimal time to transition to a new CEO.” Vanity Fair, which called it strange to see an executive leave when all seemed well, reported that the New York Times put the after-hours drop in Disney shares at 3 percent.
The choice of Chapek
Not everyone saw Chapek coming. Streaming is an area where he has little experience, and many read the Disney Plus launch as putting Kevin Mayer, the executive in charge of streaming, in line for the job. Rich Greenfield, a media analyst at LightShed Partners, was among those who bet on Mayer.
“Chapek is not the technology guy when we look at his experience, which would appear critical as the tech and media worlds continue to collide; nor is he close to the content creation that is the lifeblood of the entire Walt Disney Company,” Greenfield wrote in a note on Wednesday morning. He added that it would be “absurd to pre-judge Chapek’s potential to succeed,” because no candidate checked every box.
Chapek himself named technological disruption as the biggest challenge facing Disney. “The challenge going forward is going to be: How do we continue to have a leg up on our competition,” he said on the call.
What Iger leaves behind
Over about 15 years as CEO, Iger bought Pixar from Apple chief Steve Jobs for $7.4 billion in 2006, Marvel for $4 billion in 2009 and Lucasfilm, the Star Wars studio, for $4 billion in 2012. Time named him Businessperson of the Year for 2019.
In the company’s statement, Chapek said Iger had built Disney into “the most admired and successful media and entertainment company” and that he would keep the same strategic pillars.
Sources
- Disney CEO Bob Iger resigns suddenly, capping his legacy with Disney Plus launch – CNET
- Disney CEO Bob Iger Suddenly Steps Down
