No advanced warning for Chapek.
CNBC reported that The Walt Disney Board was in discussion with Bob Iger on Friday evening, November 18, about the possibility of returning as CEO. A deal was reached between the two parties Sunday night. Bob Chapek was notified of the decision, but not until moments before the announcement went public.
CNBC’s David Faber reported on Monday that the board became concerned after the company reported its fourth-quarter earnings earlier this month.
According to a report on CNBC, The Walt Disney Board was in discussions with Bob Iger on Friday evening about coming back as CEO. A deal was reached Sunday night, November 20. At that point, Chapek was notified of the decision, but not until moments before the announcement went public on Sunday.
Although the board has identified some internal candidates that might be able to assume the CEO position, they felt that they “didn’t want to put someone new in that position given all various pressures on the company.”
According to Faber, the board felt that they did not have many choices and the move came together very quickly. The board previously expressed concerns, but they were accelerated after the most recent earnings call. Last night, Susan Arnold communicated to Chapek that he was out.
“It was not a well-received report,” said Faber. “The conference call was not well thought of. The losses of Direct to Consumer (DTC) losses obviously have grown. Even though the promise to be profitable by [the] fiscal year ’24 remains.”
The Board’s goal is to provide stabilization within the Company with Iger’s return and give some “hope and optimism to the organization.”
Following the announcement, Disney’s stock soared as the markets opened up as investors and fans alike cheered Iger’s unexpected return.
Were you surprised to learn about Iger’s return and Chapek’s departure?